The URL can be used to link to this page

Home My WebLink About08/15/2014BAKERSFIELD Staff: Steven Teglia, Asst. to the City Manager 1. ROLL CALL City Council rr Ken Weir, Chal Terry Maxwell Harold Hansor SPECIAL MEETING NOTICE PERSONNEL COMMITTEE of the City Council - City of Bakersfield August 15, 2014 12:00 p.m. City Hall North - Conference Room A 1600 Truxtun Avenue, First Floor Bakersfield, California 93301 AGENDA 2. ADOPT NOVEMBER 18, 2013 AGENDA SUMMARY REPORT 3. PUBLIC STATEMENTS 4. NEW BUSINESS A. OPEB Actuarial Analysis Presentation - Smith B. Discussion regarding 2015 Health Care Plan renewals - Teglia _ __----•---- ---------•-- � BAKERSFIELD /s/ S-f�%tr�w Te,�L,i,a� Steve Teglia, Assistant to the City Manager City Council m Ken Weir, Chai Terry Maxwell Harold Hanson SPECIAL MEETING OF THE PERSONNEL COMMITTEE Monday, November 18, 2013 10:00 a.m. City Hall North - Conference Room A 1600 Truxtun Avenue Bakersfield, CA 93301 AGENDA SUMMARY REPORT Meeting called to order at 10:00 a.m. 1. ROLL CALL Committee members: Councilmember Ken Weir, Chair Councilmember Terry Maxwell Councilmember Harold Hanson, Absent City staff: Alan Tandy, City Manager Steven Teglia, Assistant to the City Manager Chris Huot, Assistant to the City Manager Nelson Smith, Finance Director Virginia Gennaro, City Attorney Christi Tenter, Human Resources Manager Ginger Rubin, Benefits Technician Retired employees Fred Baugher, Tim Taylor, Patti Phoenix, Margaret l and BCARE: Others present: Johnny Wu, Robert Mitchell, Tom Morrison: Segal C Billy Owens and John Patterson, SEIU Representati� Todd Dickson and Brian West, BPOA Representati� Florn Core, Insurance Committee, Retired EmployE Members of the media 3. PUBLIC STATEMENTS None 4. NEW BUSINESS A. Continued Discussion and recommendation reqardina 2014 Heali renewals � Assistant to the City Manager Teglia provided some backgrounc regarding what transpired at the October 28, 2013 Personnel Commii Subsequent to that meeting, staff inet with the Insurance Corr recommended approving all of the Segal recommendations, excludinc related to the Anthem PPO plan for active employees. The recomme include approval of switching the mental health benefit from Optum to � Tom Morrison with the Segal Company gave an overview of the informc been distributed to both bodies, which included a compar recommendations made by Segal and those made by the InsurancE Survey data that compares the City's current and proposed rates California cities was also included. Assistant to the City Manager Teglia said that staff has placed this upcoming City Council agenda, in anticipation of it being apprc Committee. Staff would request that the City Council approve all contr exception of the Anthem PPO contract, and transferring the mental r from Optum to Anthem. City Manager Tandy reminded the Committee that 4�0 of all cost.< associated with the Affordable Care Act. The motion to place all contracts with the exception of the Anthem F including transferring the mental health benefit from Optum to Antherr City Council agenda for consideration was unanimously approved. Mr. Morrison reported that the Insurance Committee recommends lec insurance in-network costs at 90�0, instead of lowering it to 80� as recoi Segal. Both parties recommend lowering the out-of-network co-insuran 60� to 50�. The Insurance Committee does not recommend limitinc employees to an HMO plan, as recommended by Segal. recommendations will cumulatively reduce the City's costs by $880,0 Insurance Committee's recommendations lower the City's costs by $740, Assistant to the City Manager Teglia noted that the Insurance Comrr believed that as the enrollment decreased, costs would increase; wanted employees to have the flexibility to choose their own physician. Todd Dickson, with the Bakersfield Police Officers Association (BPOA), Association agreed that it was important to keep the Anthem PPO plan to the modifications suggested by Segal. Committee member Maxwell stated that it is possible that PPO's may be over time, forcing all employees into HMO's. He asked if the Insuranc had considered that costs may rise regardless of whether employers cor PPO's or not. Mr. Dickson said that they had; but under the current circumstances, it v to make some concessions to keep the PPO. Committee member Maxwell said that it was important to keep the freedom of choice. Committee Chair Weir noted that the long-term savings by eliminatinc new hires is $10-12 million. Mr. Morrison noted that the savings realized by eliminating the PPO would gradually increase over the years, as employees left the City. H� would take about 16 years for those currently in the PPO to cycle througl Robert Mitchell, with Segal Company, reported on a survey conducted 10 other cities in California. All cities offered a PPO, but one combined with a Healthcare Savings Account with a high deductible. Bakersi deductible is low compared to the other cities, as are the out-of-poc Additionally, Bakersfield's contribution ratio of 80/20 is more generous thc other cities surveyed. City Manager Tandy reported that it is always necessary to meet with � Committee, as that body is the official collective bargaining entity, and to reach an agreement with them before healthcare options can be c employees during the open enrollment period. This period is typically hE of the year, so that employees can decide which option works best for new rates go into effect at the beginning of the next year. Any delay difficulties for employees, and the administration could incur additional c Committee Chair Weir suggested that staff ineet with the Insuranc� again to continue negotiations, and then return the item to the Personn� for additional discussion. Committee member Maxwell said that a Special Meeting of Committee could be held afterwards. Committee Chair Weir added that any Special Meeting would be another meeting of the Insurance Committee. Assistant to the City Manager Teglia said that the difference between � Committee's recommendations and Segal's suggestions is approximatel Committee Chair Weir made a motion for staff to return to negotiations � matter for a Special Meeting to be scheduled at a later date. The m with Committee member Hanson absent. 3. COMMITTEE COMMENTS Committee member Maxwell thanked the Insurance Committee for working with City staff on these issues. Committee Chair Weir thanked the Insurance Committee for making good � Fred Baugher asked what budget shortfall might occur if the item goes forw City Manager Tandy said the range would be $1.49 -$1.63 million. Mr. Baugher asked if anything else could have been done to help the City funds for healthcare. Committee Chair Weir said there was no way that the dramatic increasE been foreseen. Based on historical averages, a good faith effort w budget a sound amount. City Manager Tandy said that the largest share of discretionary r allocated to hire additional police personnel as a result of the impa realignment. Florn Core noted that healthcare rates are established by calendar year budget is formulated on a fiscal year basis. Mr. Baugher asked about grandfathering in the retiree plan. Mr. Morrison said grandfathering does not apply to retirees. d �I�.I(�IIRNMFNT BAKERSFIELD Staff: Steven Teglia, Asst. to the City Manager 1. ROLL CALL City Council rr Ken Weir, Chal Terry Maxwell Harold Hansor SPECIAL MEETING NOTICE PERSONNEL COMMITTEE of the City Council - City of Bakersfield August 15, 2014 12:00 p.m. City Hall North - Conference Room A 1600 Truxtun Avenue, First Floor Bakersfield, California 93301 AGENDA 2. ADOPT NOVEMBER 18, 2013 AGENDA SUMMARY REPORT 3. PUBLIC STATEMENTS 4. NEW BUSINESS A. OPEB Actuarial Analysis Presentation - Smith B. Discussion regarding 2015 Health Care Plan renewals - Teglia _ __----•---- ---------•-- � BAKERSFIELD /s/ S-f�%tr�w Te,�L,i,a� Steve Teglia, Assistant to the City Manager City Council m Ken Weir, Chai Terry Maxwell Harold Hanson SPECIAL MEETING OF THE PERSONNEL COMMITTEE Monday, November 18, 2013 10:00 a.m. City Hall North - Conference Room A 1600 Truxtun Avenue Bakersfield, CA 93301 AGENDA SUMMARY REPORT Meeting called to order at 10:00 a.m. 1. ROLL CALL Committee members: Councilmember Ken Weir, Chair Councilmember Terry Maxwell Councilmember Harold Hanson, Absent City staff: Alan Tandy, City Manager Steven Teglia, Assistant to the City Manager Chris Huot, Assistant to the City Manager Nelson Smith, Finance Director Virginia Gennaro, City Attorney Christi Tenter, Human Resources Manager Ginger Rubin, Benefits Technician Retired employees Fred Baugher, Tim Taylor, Patti Phoenix, Margaret l and BCARE: Others present: Johnny Wu, Robert Mitchell, Tom Morrison: Segal C Billy Owens and John Patterson, SEIU Representati� Todd Dickson and Brian West, BPOA Representati� Florn Core, Insurance Committee, Retired EmployE Members of the media 3. PUBLIC STATEMENTS None 4. NEW BUSINESS A. Continued Discussion and recommendation reqardina 2014 Heali renewals � Assistant to the City Manager Teglia provided some backgrounc regarding what transpired at the October 28, 2013 Personnel Commii Subsequent to that meeting, staff inet with the Insurance Corr recommended approving all of the Segal recommendations, excludinc related to the Anthem PPO plan for active employees. The recomme include approval of switching the mental health benefit from Optum to � Tom Morrison with the Segal Company gave an overview of the informc been distributed to both bodies, which included a compar recommendations made by Segal and those made by the InsurancE Survey data that compares the City's current and proposed rates California cities was also included. Assistant to the City Manager Teglia said that staff has placed this upcoming City Council agenda, in anticipation of it being apprc Committee. Staff would request that the City Council approve all contr exception of the Anthem PPO contract, and transferring the mental r from Optum to Anthem. City Manager Tandy reminded the Committee that 4�0 of all cost.< associated with the Affordable Care Act. The motion to place all contracts with the exception of the Anthem F including transferring the mental health benefit from Optum to Antherr City Council agenda for consideration was unanimously approved. Mr. Morrison reported that the Insurance Committee recommends lec insurance in-network costs at 90�0, instead of lowering it to 80� as recoi Segal. Both parties recommend lowering the out-of-network co-insuran 60� to 50�. The Insurance Committee does not recommend limitinc employees to an HMO plan, as recommended by Segal. recommendations will cumulatively reduce the City's costs by $880,0 Insurance Committee's recommendations lower the City's costs by $740, Assistant to the City Manager Teglia noted that the Insurance Comrr believed that as the enrollment decreased, costs would increase; wanted employees to have the flexibility to choose their own physician. Todd Dickson, with the Bakersfield Police Officers Association (BPOA), Association agreed that it was important to keep the Anthem PPO plan to the modifications suggested by Segal. Committee member Maxwell stated that it is possible that PPO's may be over time, forcing all employees into HMO's. He asked if the Insuranc had considered that costs may rise regardless of whether employers cor PPO's or not. Mr. Dickson said that they had; but under the current circumstances, it v to make some concessions to keep the PPO. Committee member Maxwell said that it was important to keep the freedom of choice. Committee Chair Weir noted that the long-term savings by eliminatinc new hires is $10-12 million. Mr. Morrison noted that the savings realized by eliminating the PPO would gradually increase over the years, as employees left the City. H� would take about 16 years for those currently in the PPO to cycle througl Robert Mitchell, with Segal Company, reported on a survey conducted 10 other cities in California. All cities offered a PPO, but one combined with a Healthcare Savings Account with a high deductible. Bakersi deductible is low compared to the other cities, as are the out-of-poc Additionally, Bakersfield's contribution ratio of 80/20 is more generous thc other cities surveyed. City Manager Tandy reported that it is always necessary to meet with � Committee, as that body is the official collective bargaining entity, and to reach an agreement with them before healthcare options can be c employees during the open enrollment period. This period is typically hE of the year, so that employees can decide which option works best for new rates go into effect at the beginning of the next year. Any delay difficulties for employees, and the administration could incur additional c Committee Chair Weir suggested that staff ineet with the Insuranc� again to continue negotiations, and then return the item to the Personn� for additional discussion. Committee member Maxwell said that a Special Meeting of Committee could be held afterwards. Committee Chair Weir added that any Special Meeting would be another meeting of the Insurance Committee. Assistant to the City Manager Teglia said that the difference between � Committee's recommendations and Segal's suggestions is approximatel Committee Chair Weir made a motion for staff to return to negotiations � matter for a Special Meeting to be scheduled at a later date. The m with Committee member Hanson absent. 3. COMMITTEE COMMENTS Committee member Maxwell thanked the Insurance Committee for working with City staff on these issues. Committee Chair Weir thanked the Insurance Committee for making good � Fred Baugher asked what budget shortfall might occur if the item goes forw City Manager Tandy said the range would be $1.49 -$1.63 million. Mr. Baugher asked if anything else could have been done to help the City funds for healthcare. Committee Chair Weir said there was no way that the dramatic increasE been foreseen. Based on historical averages, a good faith effort w budget a sound amount. City Manager Tandy said that the largest share of discretionary r allocated to hire additional police personnel as a result of the impa realignment. Florn Core noted that healthcare rates are established by calendar year budget is formulated on a fiscal year basis. Mr. Baugher asked about grandfathering in the retiree plan. Mr. Morrison said grandfathering does not apply to retirees. d �I�.I(�IIRNMFNT The following presentation was made at the Special Meeting of the Personnel Committee on Friday, August 15, 2014 Cit of Bakersfield y August 15, 2014 Tom Morrison Johnny VI/u Table of Contents >OPEB Valuation >Overview of 2015 Plan Renewals • Anthem HMO • Anthem PPO • Anthem Senior Secure • Kaiser HMO • Kaiser HDHP • Kaiser Senior Advantage • Dental, Vision, EAP and Life >Anthem PPO Monthly Claim Experience >Potential Plan Modifications Actuarial Valuation and Review of Other Postemployment Benefits (OPEB) as of June 30, 2013 In accordance with GASB Statements No. 43 and No. 45 Key Findings >The unfunded actuarial accrued liability as of June 30, 201 d ecreased $19, 785, 217 to $63, 868, 024. >The ratio of assets to the actuarial accrued liability increas� 19.37% (2011) to 42.15% (2013) > Contributions from the City in 2013 totaled 129% of the ani required contribution and the overall net obligation decrea� $1, 769, 936 >The annual required contribution to fully fund the benefit dE from $8,006,053 to $6,539,299 for fiscal year ending June due mainly to the excess contributions from prior years cor the required contribution and updates to actuarial assumpt Summa Results � The key valuation results for the cur�ent and prio� years are shown. SUMMARY OF VALUATION RESULTS Actuarial Accrued Liability (AAL) Actuarial Value of Assets Unfunded Actuarial Accrued Liability Funded Ratio Market Value of Assets Annual Required Contribution (ARC) for Fiscal Year Ending: Normal cost (beginning of year) Amortization of the unfunded actuarial accrued liability Adjustment for timing to end of fiscal year Total Annual Required Contribution, including adjustment for timing Total Participants Annual OPEB Cost (AOC) for Fiscal Year Ending: Annual Required Contribution Interest on Net OPEB Obligation ARC Adjustments Total Annual OPEB Cost June 30, 2013 $110,400,975 46,532,951 63,868,024 42.15% $46,532,951 June 30, 2014 $1,482,094 4,701,640 355,565 $6,539,299 1,331 * June 30, 2014 $6,539,299 -101,771 137,786 $6,575,314 *Excludes Safety employees hired after May 2006 and Miscellaneous einployees hired af'ter Feb�uary 2006 with no liability. Distribution of Liabilit y CHART 1 Actuarial Present Value of Total Projected Benefits (APB) and Actuarial Balance Sheet Participant Category Current retirees, beneficiaries, and dependents Current active members Total Actuarial Balance Sheet The actuarial balance sheet as of the valuation date is as follows: Assets 1. Actuarial value of assets 2. Present value of future normal costs 3. Unfunded actuarial accrued liability 4. Present value of current and future assets Liabilities 5. Actuarial Present Value of total Projected Benefits Actuarial Present Value of Total Projected Benefits (APB) June 30, 2013 $59,365,437 61,769,448 $121,134,885 June 30, 2013 $46,532,951 10,733,910 63,868,024 $121,134,885 $121,134,885 June 30, 201 � $57,776,71 59,762,99 $117,539,70: June 30, 201 � $20,101,23i 13,785,22: 83,653,24 $117,539,70: $117,539,70: Histo of Required Annual Contributions and rY CHART 1 Required Supplementary Information — Schedule of Employer Contributions GASB 43 Fiscal Year Ended June 30 2009 2010 2011 2012 2013 2014 Annual Required Contributions * $7,997,000** 9,495,763 9,495,763 ** 8,006,053 8,006,053** 6,539,299 * Includes an interest adjustment to the end of the year. CHART 1 Actual Contributions * $5,279,032** 6,283,456 5,509,340** 16,832,576 10,292,900 * * Not made yet Required Supplementary Information — Schedule of Funding Progress Actuarial Valuation Date 07/O 1 /2007 07/O 1 /2009 06/30/2011 06/30/2013 Actuarial Value of Assets (a) $4,800,000 12,179,117 20,101,236 �}6.532,951 Actuarial Accrued Liability (AAL) (b) $113,395,000 113,609,784 103,754,477 110,400.975 Unfunded AAL (UAAL) (b) — (a) $108,595,000 101,430,667 83,653,241 63.868,024 Percentage Contributed 66.01°/a 66.17% 58.02% 210.25% 128.56% N/A Funded Ratio (a) / (b) 4.� 10. i 19? 42.1 Partici pants i n the Plan .. ... _ Summary of Participant Data Retirees Number of retirees Average age of retirees Number of spouses Average age of spouses Surviving Spouses Number Average age Active Participants Number June 30, 2013 472 65.4 181�i� 62.3 46 77.8 813�3� Average age 46.9 Average years of service 16.1 Average expected retirement age 58.1 <<�Includes 30 spouses enrolled with retiree but not receiving City paid subsidy. ��Includes 29 spouses enrolled with reiiree but not receiving Ciry paid subsidy. �3�Excludes Safery employees hired after May 2006 and Miscellaneous employees hired after Febv�uary 2006 with no liabiliry. June 30, 2 427 64.9 16� 62.2 49 76.2 89E 45.2 14.2 57.1 >Overview of 2015 Plan Renew als 2015 Anthem Monthl Rate Summa y �r em Blue Cross HMO Active (Monthly) Single 2-Party Familv em Blue Cross PPO Percentage Co Increase / 2015 City 2015 Employee I� Enrollment 2014 Rate 2015 Rate (Decrease) Contribution Contribution (D 68 66 155 Enrollment Active (Monthly) Single 169 2-Party 138 Family 402 Retiree (Monthly) Single 254 2-Party 144 Famil 10 hem Blue Cross Senior Secure $432.97 $870.16 �1.272.10 2014 Rate $482.66 $966.97 $1,453.01 $760.96 $1,521.82 $2.282.75 $502.23 $1,009.39 $1,475.63 2015 Rate $506.78 $1,015.30 $1,525.64 $935.86 $1,871.60 $2.807.42 16.00% 16.00% 16.00% Percentage Increase / (Decrease) 5.00% 5.00% 5.00% 22.98% 22.98% 22.98% Dnrrnr�t�rvn $401.78 $100.45 $807.51 $201.88 > 1,180.50 $295.13 co 2015 City 2015 Employee Ir Contribution Contribution � $405.42 $101.36 $812.24 $203.06 $1,220.51 $305.13 Varies Varies r., 2015 Kaiser Monthl Rate Summa y �r iser HMO Active (Monthly Single 2-Party Family Under 65 Retiree (Monthly Single 2-Party Familv Kaiser Deductible Enrollment I 2014 Rate 100 70 191 5 1 0 $358.50 $716.99 $1,014.54 $859.25 $1,718.50 $2,431.68 Enrollment I 2014 Rate 2015 Rate $412.27 $824.54 $1,166.73 $988.14 $1,976.28 $2,796.43 Percentage Increase / (Decreasel 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% Percentage Increase / 2015 Rate (Decrease) 2015 City Contribution $329.82 $659.63 $933.38 Varies Con 2015 Employee In� Contribution De $82.45 $ $164.91 $ $233.35 $' Varies �, Cor 2015 City 2015 Employee In Contribution Contribution (Di Active (Monthly) Single 1 $284.79 $299.03 5.0% $239.22 $59.81 � 2-Party 0 $569.60 $598.06 5.0% $478.45 $119.61 � Family 1 $805.96 $846.25 5.0% $677.00 $169.25 � Under 65 Retiree (Monthly) Single 0 $703.99 $814.09 15.6% Varies Varies � 2-Party 0 $1,407.98 $1,628.19 15.6% Famil 0 $1,992.29 $2,303.88 15.6% Kaiser HMO Senior Advantaqe 2015 Dental Monthl Rate Summa y �r cific Union Dental Monthly Summa 'mperial 1000 - Active Single 2-Party Family Vapa 800 - Active Single 2-Party Enrollment 169 142 274 �� 2014 Rate $22.81 $45.49 $67.44 $20.41 $40.70 fic Union Dental Optional Plan - Monthly Summ Trinity Dental - Retiree Single 2-Party Family Regency Dental - Retiree Single Enrollmenl 18 13 0 77 2014 Rate $11.42 $18.28 $28.03 $19.23 2015 Rate* $22.81 $45.49 $67.44 $20.41 $40.70 2015 Rate* $11.42 $18.28 $28.03 $19.23 Percentage Con Increase / 2015 City 2015 Employee In� Decrease Contribution Contribution De 0.0% $18.25 $4.56 � 0.0% $36.39 $9.10 � 0.0% $53.95 $13.49 � 0.0% $16.33 $4.08 � 0.0% $32.56 $8.14 � Percentage Increase / 0.0% 0.0% 0.0% 0.0% Con 2015 City 2015 Employee In� �ontribution Contribution (De Varies Varies 2015 Dental Monthl Rate Summa y �r etLife Dental PPO Active (Monthly) Single 2-Party Familv Enrollment 187 205 �c • : 2014 Rate $42.16 $86.71 144.52 2015 Rate $45.20 $92.94 $154.93 Percentage Increase / (Decreasel 7.2% 7.2% 7.2 conti 2015 City 2015 Employee Inci Contribution Contribution (Dec $36.16 $74.35 123.94 $9.04 $18.59 30.99 �� , � 2015 EAP, and Vision Rate Summa rY (Composite Rate) - All Employees Active (Monthl Percentage 2015 Con Increase / 2015 City Employee Inc Enrollment 2014 Rate 2015 Rate Decrease Contribution Contribution De 1436 $1.66 $1. 66 0. 0% 1.66 0.00 : edical Eye Services (MES) Monthly Summary - Vision MO Active and Retiree Single 2-Party Family Active Single 2-Party Percentage 2015 Con Increase / 2015 City Employee Inc Enrollment 2014 Rate 2015 Rate* Decrease Contribution Contribution De 196 $3.75 $3.75 0.0% $3.00 $0.75 g 167 $7.50 $7.50 0.0% $6.00 $1.50 � 311 $9.75 $9.75 0.0% $7.80 $1.95 � 197 $5.25 $5.25 0.0% $4.20 $1.05 180 $10.55 $10.55 0.0% $8.44 $2.11 *4-year rate guarantee through 2016 2015 Flexible Benefits, Life and LTD Rate Sum ealthComp - Section 125 Flexible Benefits (per participant per month) Enrollment Heal th Co m NG - Life Insurance (Rate per $1,000 Enrollment Basic Life AD&D *3-year rate guarantee through 2015 num - Long Term Disability (Rate per $100) Enrollment Un um 2014 Rate 2014 Rate $0.102 $0.02 2014 Rate $0.55 2015 Rate 2015 Rate* $0.102 $0.02 2015 Rate $0.55 Percentag Chanae Percentag� Change 0.0% 0.0% Percentag Change 0.0% >Anthem PPO Claim Experience Active PPO Plan Ratio of Claims to Premium (Excludes Administration Expense) Zoo.oro - 180.0 % 160.0 % 140.0% 120.0% 100.0% 80.0% 60.0% 4U.0% _`_ - . - - � Retiree PPO Plan Ratio of Claims to Premium (Excludes Administration Expense) Zoo.oro - Zso.oi 160.0% 140.0% 120.0% 100.0% 80.0% 60.0% 40.0% Anthem. �•� � _ : � : :.:i'� , :'�.... �. ...r�.'.� � �... � : ..�.. '- . f �' i��.:: :..._... :�...� .._ .,.,.. , .. ' � ._ . . .i. ...n, . . . � i . . . �'Y � . . ..., . . . � .:f� .. � . �..� �..,.�� ...:. ...... ...�� . . � � . .. . . �.�,...,��..i ..�.. , • , ,r � 'l�i Case: C00403 Report ID: GHR03672 - C0121 CLIENT PAID CLAIM LOSS RATIO REPORT - CASE/PRODUCT SUMMARY CITY OF BAKERSFIELD MBS AABS PUBLIC SECTOR REGION LOB 9 SALES OFF: MAJ ACCT MGMT ACCAUNT MANAGER. STEVE GLORE, ACCOUNT MANAGER I BROKER. THE SEGA� COMPANY CASE RENEWAL MONTH: 01 GROUP NUMBERS: 97039M 97039N 97039U PRODUCTTYPE. PPOACTIVE ' MEDICAL PRODUCTS EXCIUDE PRESCRIPTION DRUG CARD PREMIUM AND CLAIMS ENRO�LED CONTRACT MONTHS COVERAGE PERIOD SINGLE �-PARTY FAMILY TOTAL �TR 1 411 4�1 1,�'9< <,1�4 pTR 2 413 431 1,�7 �,071 aTR 3 440 430 1,307 '',177 QTR 4 444 430 1,'..9? ",166 PRIORI�MONTH 1,708 1,71� 5,118 8,538 07/13 160 144 4�9 733 08113 160 149 4�9 738 09/13 145 163 375 683 QUARTERLY TOTAL 465 456 1,233 '?,154 10l13 161 144 428 733 11/13 151 109 455 715 1�/13 160 141 4�5 7�6 �UARTERLY TOTAL 47'� 394 1,308 �,174 01114 1 G' '137 400 699 OJ14 156 137 400 693 03/14 175 137 40� 714 QUARTERLY TOTAL 493 411 1,202 2,106 04/14 175 139 401 715 05/14 171 137 399 707 06/14 171 138 396 705 QUARTERLY TOTAL 517 414 1,196 �,1`'7 POLICY YTD 1 010 825 2398 4.233 07/12 THROUGH 06/14 PREMIUM PAID CLAIMS LOSS RATIO 1.818, 650.86 1,778,147.44 1,6?0, 706.55 1,631,959.1� 6,849,463.97 556.5�8.04 568.400.38 526.56245 1,641, 490.87 565.9_^0.1 � 536,.^.47.14 551,576.6� 1.643,743.88 659,998.43 503,255.37 655,208.76 1,908,462.56 64�,764.47 661,165.73 615.567.8� 1,919, 498.0� 3.827.960 58 1.363,891.77 1,475,023.89 1,647, 993.44 1,473, 57 7.69 5,960,486.79 599 616 81 612,515.80 1,001, 750.56 ^,�13,883. 7 7 647,35^.33 731,7d8.:4 995,435.98 ^,374,536.55 807.674.99 459.599.26 457,644.44 1,724, 918.69 355,873.55 4�9,573.1 ^ 363,0�7.7^ 1,148, 474.39 �.873.393.08 74.99 SZ.95 101.68 90.54 87.08 108.11 7 70.06 190.63 135.24 116.81 136.83 180.83 144.83 1'.'.2.67 n.ao 70.14 90.69 55.67 65.^_6 59.29 E 60.13 75.37 Anthem. �-� � � .. _ � � _ � : r � . > > .: , ., � , �. . . : . . , �, . .� . �. � � � � , . . , � . . � , _ , . ., . . . � � . .. Case: C00403 Report ID: GHR03672 - C0121 MBS REGION: SALES OFF: ACCOUNTMANAGER. BROKER. CASE RENEWAL MONTH: GROUP NUMBERS: PRODUCTTYPE: COVERAGE PERIOD QTR 1 aTR 2 pTR 3 QTR 4 PRIOR 1� MONTH 07/13 08/13 09J13 QUARTERLY TOTAL 10/13 11/13 1�/13 �UARTERLY TOTAL 01 /14 OJ14 03/14 �UARTER�Y TOTAL 04/14 05/14 o�� a OUARTERLY TOTAL CLIENT PAID CLAIM LOSS RATIO REPORT - CASE/PRODUCT SUMMARY CITY OF BAKERSFIELD MBS PUBUC SECTOR LOB 9 MAJ ACCT MGMT STEVE GLORE, ACCAUNT MANAGER I THE SEGAL COMPANY 01 97039M 97039N 97039U PPO ACTIVE - PHARMACY ENROLLED CONTRACT MONTHS SINGLE �-PARTY FAMILY 411 4.^.1 1,:.'9� 413 431 1,47 440 430 1.307 444 430 1,^J�� 1,708 1,71:. 5,115 160 144 4�9 160 149 4�9 145 163 375 465 456 1,233 161 144 4'?8 151 109 455 160 141 4^5 472 394 '1,308 15' 137 400 156 137 400 175 137 40� 493 411 1,202 175 139 401 171 137 399 �� sa ass 517 414 1,196 TOTAL �,1,^.4 ^.071 '',177 ",166 8,538 733 738 683 '',154 733 715 7�6 ^,174 699 693 714 ^,106 715 707 705 '',1 `'�'7 ;� t l f i i�� :1: Z�1 � L�3 :[� I=�i C! PREMIUM 419.367.7� 409,979.01 462,087.53 465,316.69 1,756,75L25 158.681.81 159 �15.7� 150,148.74 468,046.27 158,519.93 15�,904.15 157 �81.39 468,705.47 153,755.99 138,471.63 15�,914.15 445,141.77 150,018.24 154,313.04 143.670.69 448.001.97 PAID CLAIMS 401,298.86 416,539.87 423,890.29 4.^.7,796.50 1,669,5�5.52 1�5,�13.68 167,970.10 1�9.537.8� 42�.721.60 13�,910.71 185,500.93 148.002.78 466,414.4� 167.9«.4� 114.81 �.76 161,107.51 443,842.69 118,037.58 119.133.60 171.'_49.90 408,421.08 LOSS RATIO 95.69 101.60 91.73 91.93 95.03 78.90 105.49 86.27 90.31 83.84 1�1.31 94.10 99.51 109.�1 82.91 105.35 99.70 78.68 n.�o 179.19 E 91.16 Anthem. �•� � _ : � : :.:i'� , :'�.... �. ...r�.'.� � �... � : ..�.. '- . f �' i��.:: :..._... :�...� .._ .,.,.. , .. ' � ._ . . .i. ...n, . . . � i . . . �'Y � . . ..., . . . � .:f� .. � . �..� �..,.�� ...:. ...... ...�� . . � � . .. . . �.�,...,��..i ..�.. , • , ,r � 'l�i Case: C00403 Report ID: GHR03672 - C0121 CLIENT PAID CLAIM LOSS RATIO REPORT - CASE/PRODUCT SUMMARY CITY OF BAKERSFIELD MBS AABS PUBLIC SECTOR REGION LOB 9 SALES OFF: MAJ ACCT MGMT ACCAUNT MANAGER. STEVE GLORE, ACCOUNT MANAGER I BROKER. THE SEGA� COMPANY CASE RENEWAL MONTH: 01 GROUP NUMBERS: 97039P PRODUCT TYPE. PPO RETIREE ' MEDICAL PRODUCTS EXCIUDE PRESCRIPTION DRUG CARD PREMIUM AND CLAIMS ENRO�LED CONTRACT MONTHS COVERAGE PERIOD SINGLE �-PARTY FAMILY TOTAL �TR 1 712 379 36 1,127 pTR 2 736 378 38 1,15� aTR 3 746 407 44 1,197 QTR 4 7^8 395 39 1,15_' PRIOR 1� MONTH 2,9� 1,559 157 4,638 07/13 �57 1.^.7 14 398 08113 25� 134 14 400 09/13 264 130 76 410 QUARTERLY TOTAL 773 391 44 1,?08 10l13 �49 139 15 403 11 /13 «8 130 8 366 1�/13 251 137 13 401 �UARTERLY TOTAL 728 406 36 1,170 01114 .^.49 138 11 398 OJ14 �63 148 8 419 03/14 �61 147 10 418 QUARTERLY TOTAL 773 433 29 1,235 04/14 �53 146 10 409 05/14 '?41 138 10 389 06/14 264 141 10 415 QUARTERLY TOTAL 758 4�5 30 1,�13 POLICY YTD 1.531 858 59 �.448 07/12 THROUGH 06/14 PREMIUM PAID CIAIMS LOSS RATIO 69�.114.68 706,628.58 1,019,1�7.1� 988,173.17 3,406,043.55 333,64�.05 337.871. �� 343,188.45 1,014, 701.72 343.349.09 312,0.^.8.16 338.878.1� 994,'155.37 �89.160.27 302.533.24 303,545.13 895 �38.64 �99,3�'0.33 ^83, 711.48 ^98.�"9.73 881,?.61.54 1776.500 18 608.814.08 893.878.34 744,9^9.59 683„05.31 ^,930,�7.32 � 7 0, 596.39 389,205.91 498.535. 7 3 1,098,337.43 467.675.09 :70.160.79 404,401.37 1.142,237.25 491.161.79 377,975.24 557.398.06 1,426, 535.09 �19,579.14 354,183.19 35�,663.15 926,425.48 �.35�.960.57 87.96 126.49 73.09 65.�4 86.07 63.�7 t 75.34 145.41 108.39 136.36 86.74 119.48 115.04 170.04 125.11 183.80 15AS2 73.53 1'?5.0� 118.43 105.30 132.63 Anthem. �•� � _ : � : :.:i'� , :'�.... �. ...r�.'.� � �... � : ..�.. '- . f �' i��.:: :..._... :�...� .._ .,.,.. , .. ' � ._ . . .i. ...n, . . . � i . . . �'Y � . . ..., . . . � .:f� .. � . �..� �..,.�� ...:. ...... ...�� . . � � . .. . . �.�,...,��..i ..�.. , • , ,r � 'l�i Case: C00403 Report ID: GHR03672 - C0121 MBS REGION SALES OFF: ACCAUNTMANAGER. BROKER. CASE RENEWAL MONTH: GROUP NUMBERS: PRODUCT TYPE: COVERAGE PERIOD �TR 1 pTR 2 aTR 3 QTR 4 PRIOR 1� MONTH 07/13 08113 09/13 QUARTERLY TOTAL 10l13 11/13 1�/13 �UARTERLY TOTAL 01114 OJ14 03/14 QUARTERLY TOTAL 04/14 05/14 06/14 QUARTERLY TOTAL POLICY YTD CLIENT PAID CLAIM LOSS RATIO REPORT - CASE/PRODUCT SUMMARY CITY OF BAKERSFIELD AABS PUBLIC SECTOR LOB 9 MAJ ACCT MGMT STEVE GLORE, ACCOUNT MANAGER I THE SEGA� COMPANY 01 97039P PPO RETIREE - PHARMACY ENRO�LED CONTRACT MONTHS SINGLE �-PARTY FAMILY TOTAL 712 379 36 1,127 736 378 38 1,15� 746 407 44 1,197 7^8 395 39 7 ,15' '',9� 1,559 157 4,638 �57 1�7 14 398 25� 134 14 400 264 130 t6 410 773 391 44 1,?08 �49 139 15 403 «8 130 8 366 251 137 13 401 728 406 36 1,170 249 138 11 398 �63 148 8 419 �61 147 10 418 773 433 29 1,235 �53 146 10 409 '?41 138 10 389 264 141 10 415 758 4�5 30 1,�13 1.531 858 59 �.448 07/12 THROUGH 06/14 PREMIUM PAID CLAIMS LOSS RATIO 410.136.8� 418,737.85 385.94299 373.337.77 1,588,155.43 126,�43 06 1�7.843.�8 1?9,855.19 383,941.53 1�9.915.99 117,498.85 1�8. `'4.'�J 375.639.13 134,535.50 140,674 18 141,118.51 416.328.19 139.154.�7 13^.159.09 138,647.36 409.960.7� 8�6.�88.9'I 3�3,356.74 334,685.81 364,44�.74 408,071.�^ 1,430, 5b6.51 118.168.9� �05,935.75 169,008. 71 493.11 �.78 14�,'38.07 `01.676.96 141, �74.88 485.189.91 176,5� 1.05 165.5�0.50 145,854.84 487,896.39 148,100.01 158,011.53 '?16,096.6� 5.^.2,�08.16 1.010.104 55 78.84 79.92 94A2 109.30 90.07 93.60 161.08 130.15 128.43 109.48 171.64 110.17 129.16 131.20 117.66 103.35 177.19 106.42 119.56 155.86 1 `'7.38 1."!�..�.4 >Potential Plan Modifications Anthem PPO Plan Modifications Modification In-network Annual OOP Maximum From: $2,000 single/$6,000 family To: $3,000 single/9,000 family In-network co-insurance From 90% to 80% Hospital inpatient From: $250 deductible plus 90% In-network/$500 deductible plus 50% out-of-network To: $500 deductible plus 80% In-network/$750 deductible plus 50% out- of-network Medical Rate Rx Rate Adjustment Adjustment -0.89% -2.34% -2.53% ER from $100 to $150 I -0.11 % I - Anthem HMO Plan Modifications Deductible Single Familv nual Out-of-Pocket Maximum Single Familv Hospital Inpatient Outpatient Primary Care Visits Specialty Care Visits Diagnostic X-Ray and Lab Preventive Care Durable Medical Equipment Emergency Room Prescription Drug Retail Generic Brand (Formulary) Brand (Non-Formulary) Current HMO $0 $0 $500 $1,500 $250/admit $0 $25 $25 $0 $25 $0 $100 (waived if admitted) $10 $20 $20 Option 1: Value HMO 20/40/250/3 day/1250P $0 $0 $3,000 $6,000 $250/day, up to 3 day max $125/admit $20 $40 $0 $0 50% $150 (waived if admitted) $10 $25 $45 O� Deduc $1,000 0% aftE 0% aftE 0% aftE $150 after dE ac Kaiser HMO Plan Modifications ductible Single Familv nnual Out-of-Pocket Maximum Single Familv ospital Inpatient Outpatient rimary Care Visits pecialty Care Visits reventative Care iagnostic X-Ray and Lab urable Medical Equipment mergency Room mbulance Transportation rescription Drug Retail Generic Brand Days of supply °------�ae--- ^----� ww_e� Current Kaiser HMO $0 $0 $1,500 $3,000 $250/admit $25 $25 $25 $25 $0 20% $100 (waived if admitted) $50 $10 $20 100 days Option 1: Ambulance and Rx Modification $0 $0 $1,500 $3,000 $250/admit $25 $25 $25 $0 $0 20% $100 (waived if admitted) $100 $10 $20 30 days >Append ix Act i ve P I a n Rate H i sto ry 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% -10.0% -15.0% -20.0% 2011 2012 2013 2014 2015 Act i ve P I a n Rate f o r S i n I e E m p I o e e- Rate H J Y $600.00 $500.00 $400.00 $300.00 Szoo.00 $100.00 S- � Kaiser HMO � -Anthem HMO ��_ - �: 2011 $317.45 $356.03 Active Rate History 2012 $317.45 $356.03 2013 $330.14 $386.92 ��-� - 2014 $358.50 $432.97 Non Medicare Retiree Plan Rate History 3o.o�io 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% -10.0% -15.0% -20.0% -25.0% 2011 2012 2013 2014 2015 Non Medicare Retiree Plan Rate for Sin le Ret g Rate H i sto ry Retiree Rate History $Z,ZOO.00 $Z,000.00 , :�� .�� C� �� S2oo.o0 $- 2011 2012 2013 2014 � Kaiser HMO $626.83 $737.35 $739.56 $859.25 Enrollment for Active Plans 2013 Enrollment - Actives Kaiser DHMO, 1, 0.1% Kaiser HMO, 324, 25% Anthem HMO, 274, 21% Anthem PPO, 717, 54% 2014 Enrollment - Actives Kaiser DHMO, 2, 0.1% Kaiser HMO, 361, 27% Anthem HMO, 289, 21 % Anthem PPO, 709, 52% Non Medicare Retiree Enrollment 2013 Enrollment - Non Medicare Retirees Kaiser HMO, 9, 2% Kaiser DHMO, 1, 0.2% � Anthem PPO, 393, 98% 2014 Enrollment - Non Medicare I Kaiser DHMO, 0, Kaiser HMO, 6, 1% � 0.0%