Loading...
HomeMy WebLinkAbout08/18/2020Staff: Committee Members: Chris Huot Councilmember, Ken Weir - Chair Assistant City Manager Councilmember, Chris Parlier Councilmember, Bruce Freeman SPECIAL MEETING NOTICE PERSONNEL COMMITTEE of the City Council - City of Bakersfield Tuesday, August 18, 2020, 12:00 p.m. City Hall North – Conference Room A 1600 Truxtun Avenue, First Floor Bakersfield, California 93301 A G E N D A 1.ROLL CALL 2.ADOPT AUGUST 13, 2019 AGENDA SUMMARY REPORT 3.PUBLIC STATEMENTS 4.NEW BUSINESS A.2021 Health Care Plan Renewals – Huot 5.COMMITTEE COMMENTS 1.ADJOURNMENT SPECIAL NOTICE Public Participation and Accessibility August 18, 2020 Personnel Committee On March 18, 2020, Governor Gavin Newsom issued Executive Order N-29-20, which includes a waiver of Brown Act provisions requiring physical presence of the Committee members or the public in light of the COVID-19 pandemic. Based on guidance from the California Governor’s Office and Department of Public Health, as well as the County Health Officer, in order to minimize the potential spread of the COVID-19 virus, the City of Bakersfield hereby provides notice that as a result of the declared federal, state, and local health emergencies, and in light of the Governor’s order, the following adjustments have been made: 1. The meeting scheduled for August 18, 2020 at 12:00 p.m. will have limited public access. 2. Consistent with the Executive Order, Committee members may elect to attend the meeting telephonically and to participate in the meeting to the same extent as if they were physically present. 3. The public may participate in each meeting and address the Committee as follows:  If you wish to comment on a specific agenda item, submit your comment via email to the City Clerk at City_Clerk@bakersfieldcity.us no later than 5:00 p.m. the Monday prior to the Committee meeting. Please clearly indicate which agenda item number your comment pertains to.  If you wish to make a general public comment not related to a specific agenda item, submit your comment via email to the City Clerk at City_Clerk@bakersfieldcity.us no later than 5:00 p.m. the Monday prior to the Committee meeting.  Alternatively, you may comment by calling (661) 326-3100 and leaving a voicemail of no more than 3 minutes no later than 5:00 p.m. the Monday prior to the Committee meeting. Your message must clearly indicate whether your comment relates to a particular agenda item, or is a general public comment. If your comment meets the foregoing criteria, it will be transcribed as accurately as possible.  If you wish to make a comment on a specific agenda item as it is being heard, please email your written comment to the City Clerk at City_Clerk@bakersfieldcity.us. All comments received during the meeting may not be read, but will be provided to the Committee and included as part of the permanent public record of the meeting. ________________________________________________________________ S:\Council Committees\2019\Personnel\August 13 ASR.docx Page 1 CH:mc B A K E R S F I E L D Committee Members Staff: Chris Huot Councilmember, Ken Weir, Chair Assistant City Manager Councilmember, Bruce Freeman Councilmember, Chris Parlier SPECIAL MEETING OF THE PERSONNEL COMMITTEE Tuesday, August 13, 2019 9:00 a.m. City Hall North – Conference Room A 1600 Truxtun Avenue Bakersfield, CA 93301 AGENDA SUMMARY REPORT Meeting called to order at 12:00 p.m. 1. ROLL CALL Committee members Present: Councilmember, Ken Weir, Chair Councilmember, Bruce Freeman Councilmember, Chris Parlier City staff: Alan Tandy, City Manager Chris Huot, Assistant City Managers Brianna Carrier, Administrative Analyst Nathan Gutierrez, Management Assistant Richard Iger, Deputy City Attorney Christi Tenter, Human Resources Manager Mari Blowers, Benefits Supervisor Kim Gearheart, Benefits Technician Dianne Hoover, Recreation and Parks Director Greg Terry, Chief of Police Retired employees Fred Baugher, Bill Descary, and Margaret Ursin and BCARE: Others present: Tom Morrison and Johnny Wu, Segal Company /s/ Chris Huot DRAFT ________________________________________________________________ S:\Council Committees\2019\Personnel\August 13 ASR.docx Page 2 CH:mc 2. ADOPTION OF AUGUST 14, 2018 AGENDA SUMMARY REPORT A motion to receive and file the Personnel Committee’s August 14, 2018 Agenda Summary Report was approved. 3. PUBLIC STATEMENTS There were no public statements. 4. NEW BUSINESS A. 2020 Health Care Plan Renewals - Huot Assistant City Manager Huot introduced Human Resources Manager Christi Tenter who provided a summary of the annual process to prepare the rate renewal package for 2020. He stated Segal Company had worked with the various plan providers to obtain an understanding of the rates for the new plan year, which begins on January 1, 2020. The same information was provided to the Insurance Committee. She introduced Tom Morrison with the Segal Company (Segal) to present their report by way of a handout and PowerPoint presentation. Mr. Morrison distributed information to the Committee and gave a summary overview. Key points are:  The following plans experienced higher claims than in the prior year:  Blue Shield Active PPO  Kaiser Non-Medicare HMO  United Concordia (UCCI) PPO  UCCI proposed a two-year renewal premium increase of 10.2%  Optum and Voya proposed no increase to the rates  Unum initially proposed a 8.8% increase and after negotiation reduced it to a 5.3% increase  P&A Group and MES Vision are in the last year of multi-year rate guarantees and there is no increase  The City’s overall cost for active employee benefits increased by 9.4% or $1,499,500 for 2020 at the current contribution level of 80%, when compared to the 2019 reduction of 2.7%  Kaiser proposed an alternative plan in conjunction with the current plans that will reduce the proposed rate increase for the current Active Traditional and Deductible HMO plans to 4.04% and 2.8%, respectively. The total budgeted active increase would be reduced to 8.6% for all benefits  The 2020 premiums for retiree benefits increased by 1.1% or $81,900 without consideration of the subsidy amount paid by the City Mr. Morrison also provided a summary of historic active and retiree plans rate information and enrollment comparisons for the last five years. Human Resources Director Tenter reported that after careful consideration and thorough discussion, the Insurance Committed voted unanimously to recommend the City accept and adopt the rate renewal package as presented. DRAFT ________________________________________________________________ S:\Council Committees\2019\Personnel\August 13 ASR.docx Page 3 CH:mc Committee Chair Weir requested staff research the possibility of changing the City’s insurance contribution for employees from a percentage based plan to a fee based plan. Committee member Freeman requested staff research and provide information on how the proposed insurance plan compares to the plans of comparable cities when presenting the information to the Committee. Committee member Parlier made a motion to accept staff’s recommendation and submit the item for approval to the full City Council. The motion was unanimously approved. 5. COMMITTEE COMMENTS There were no comments. 6. ADJOURNMENT The meeting was adjourned at 1: 10 pm DRAFT Documents Presented At The Personnel Committee August 18, 2020 Meeting © 2020 by The Segal Group,Inc. Presented on: August 18, 2020 Presenters: Johnny Wu and Garrett Moore City of Bakersfield Calendar Year 2021 Renewal Insurance Committee Executive Summary 2021 Plan Renewal Overview Principle Causes of Rate Change 2 │Agenda Due to favorable experience for the Blue Shield PPO and Kaiser plans, renewals were very favorable for 2021. •After negotiations, Blue Shield reduced its overall annual premium by $608,000. The Insurer Tax under the Affordable Care Act is repealed starting 2021, which also positively impacted the renewals. In summary, the City’s 2021 overall budget cost for active employee decreased by 3.5% or $622,000 at its current 80% contribution level. The 2021 cost of retiree benefits in total decreased 5.0% or $408,600 •The City’s subsidies also decreased by 5.0% •The City’s renewal experience fluctuates from year to year. 3 Executive Summary Executive Summary -Historical Medical Rates Active Plan Rate Action 1 Kaiser DHMO Mid plan was implemented in the 2020 calendar year. 9.5%9.6% 4.0% -5.0% 2.6% -5.0% 6.3% 1.6% -5.0%-5.0% 2.8% -5.0% 0.2%0.0% 7.4% -2.7% 14.3% -5.0%-5.1% 2.8% 1.1% 2.2% 6.8%6.8%6.8% -0.2%-0.2%0.0%0.0% 3.5%3.5%3.4% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% -10.0% 2017 2018 2019 2020 2021 Average Kaiser HMO Kaiser DHMO Mid ¹Kaiser DHMO Low Blue Shield PPO Blue Shield Full HMO Blue Shield Narrow HMO 4 Executive Summary -Historical Medical Rates Non-Medicare Advantage Retiree Rate Action 15.1%14.8%15.0%15.0%15.0%15.0% 0.0%0.0%0.0%0.0% 9.0%9.0% 4.1% 2.4%2.1% 0.9% -5.0% 0.9% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 2017 2018 2019 2020 2021 Average Kaiser HMO Kaiser DHMO Low Blue Shield PPO 5 Executive Summary -Historical Medical Rates Medicare Retiree Rate Action 1.0% 7.2% 2.3%2.3% -9.2% 0.7% -22.0% 11.5% 9.3% 4.4% -3.6% -25.0% -15.0% -20.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 2017 -21.2% 2018 2019 2020 2021 Average Kaiser Senior Advantage Blue Shield Medicare Advantage 6 The coronavirus disease 2019 (COVID- 19)pandemic is rapidly evolving and causing significant disruptions to the healthcare delivery system. The pandemic has resulted in a temporary suspension of many healthcare services. •Some maintenance care; •Other elective surgeries; •Material disruptions to expensive, critical care are not expected. Executive Summary COVID-19 77 Reduced utilization of non-essential care is expected throughout most of 2020 with the biggest disruptions occurring in the 2nd quarter. Most of the delayed care is expected to return during the 2nd half of 2020 and 1st half of 2021. Medical expenses in 2020 are expected to be 3–4% lower due to services being cancelled and/or never performed and 0–1% higher in 2021 due to rescheduling of services delayed in 2020 Executive Summary $0 $100 $200 $300 $400 $500 $600 Me d i c a l P l a n E x p e n s e PM P M Not Impacted Delayed Cancelled Rescheduled $500 $450 $400 $350 $300 $250 $200 $150 $100 $50 $0Me d i c a l P l a n E x p e n s e PM P M Post-COVID-19 Direct Costs 8 The direct costs of testing and treating COVID-19 are expected to be concentrated in the 2nd quarter of 2020. Costs are expected to be more than offset by savings from reduced utilization of non- essential services. Overall, medical expenses are expected to be lower than pre-COVID-19 projections in 2020 and higher than pre-COVID-19 projections in 2021. COVID-19 Please note, the medical plan expense PMPM’s below are graphical illustrations of the effect of COVID-19 on health plans and are not representative of City of Bakersfield data │2021 Plan Renewal Overview 9 Carrier Rate Action by Plan Comments Blue Shield •HMO/Trio HMO: 3.50%Increase •PPO (Actives): (5.10%)Decrease •PPO (Retirees): (4.96%)Decrease •Medicare HMO: 4.37%Increase •HMO rate increase due to high trend factors and utilization •PPO decrease due to lower utilization •After negotiations, concession resulted in projected annual premium savings of ($608,000) Kaiser •HMO (Active): 5.00%Decrease •Deductible HMO Mid (Active): 5.00%Decrease •Deductible HMO Low (Active): 5.00%Decrease •HMO (Non-Medicare Retiree): No Change •Deductible HMO Low (Non-Medicare Retiree): No Change •Senior Advantage (Medicare Retiree):9.18% Decrease •Active rate decreases due to lower utilization •Non-Medicare Retiree plans currently have no enrollment UCCI •DPPO: No Change •DHMO: No Change •Rates are guaranteed through December 31,2021 MES Vision •PPO: 29.61%Decrease •HMO: 33.33%Decrease •Proposed rate decrease and guaranteed through December 31,2024 Voya •Basic Life: No Change •Basic AD&D: No Change •Supplemental Life: No Change •Supplemental AD&D: No Change •Rates are guaranteed through December 31,2021 Optum •EAP: No Change •Proposed rates through December 31,2021 P&A Group •Section 125 Flexible Benefits: No Change •Rates are guaranteed through December 31,2022 Unum •Long-Term Disability: No change •Proposed rates through December 31,2021 10 2021 Plan Renewal Overview 2021Annual Premiums City Contribution at 80% 11 Active Plan Enrollment Current City Contribution at 80% 2021 City Contribution at 80%Annual Change Percentage Change Blue Shield Full HMO 170 $2,095,300 $2,168,600 $73,300 3.5% Narrow HMO 85 $842,800 $872,300 $29,500 3.5% PPO 615 $8,826,700 $8,376,600 -$450,100 -5.1% Subtotal 870 $11,764,800 $11,417,500 -$347,300 -3.0% Kaiser HMO 462 $4,493,500 $4,268,800 -$224,700 -5.0% Deductible HMO Mid 3 $16,400 $15,600 -$800 -4.9% Deductible HMO Low 55 $267,200 $253,800 -$13,400 -5.0% Subtotal 520 $4,777,100 $4,538,200 -$238,900 -5.0% United Concordia HMO 354 $151,300 $151,300 $0 0.0% PPO 1,064 $1,023,300 $1,023,300 $0 0.0% Subtotal 1,418 $1,174,600 $1,174,600 $0 0.0% MES Vision (1) HMO 792 $51,700 $33,600 -$18,100 -35.0% PPO 613 $58,800 $41,100 -$17,700 -30.1% Subtotal 1,405 $110,500 $74,700 -$35,800 -32.4% Total Medical, Dental, Vision (2)$17,827,000 $17,205,000 -$622,000 -3.5% (1) MES Vision rates are guaranteed through December 31,2024. (2)Voya Life and AD&D,Optum EAP,Unum LTD and P&A Group are not included above. The projections of annual premium in this report are estimates of future costs and are based on information available to The Segal Company at the time the projections were made. The Segal Company has not audited the information provided. Projections are not a guarantee of future results. Actual experience may differ due to, but not limited to, such variables as changes in the regulatory environment, local market pressure, health trend rates and claims volatility. The accuracy and reliability of health projections decrease as the projection period increases. 2021 Annual Premiums Active and COBRA 12 Active and COBRA Plan Enrollment Current Annual Premium 2021 Annual Premium Annual Change Percentage Change Blue Shield Full HMO 170 $2,619,100 $2,710,800 $91,700 3.5% Narrow HMO 87 $1,081,000 $1,118,800 $37,800 3.5% PPO 619 $11,081,100 $10,516,000 -$565,100 -5.1% Subtotal 876 $14,781,200 $14,345,600 -$435,600 -2.9% Kaiser HMO 464 $5,634,300 $5,352,500 -$281,800 -5.0% Deductible HMO Mid 3 $20,500 $19,500 -$1,000 -4.9% Deductible HMO Low 55 $334,000 $317,300 -$16,700 -5.0% Subtotal 522 $5,988,800 $5,689,300 -$299,500 -5.0% United Concordia HMO 359 $191,000 $191,000 $0 0.0% PPO 1,091 $1,302,700 $1,302,700 $0 0.0% Subtotal 1,450 $1,493,700 $1,493,700 $0 0.0% MES Vision (1) HMO 799 $65,000 $42,300 -$22,700 -34.9% PPO 628 $75,000 $52,500 -$22,500 -30.0% Subtotal 1,427 $140,000 $94,800 -$45,200 -32.3% Total Premiums $22,403,700 $21,623,400 -$780,300 -3.5% (1) MES Vision rates are guaranteed through December 31,2024. 2021 Annual Premiums Retirees 13 Retiree Plan Enrollment Current Annual Premium 2021 Annual Premium Annual Change Percentage Change Blue Shield PPO 429 $7,607,100 $7,229,800 -$377,300 -5.0% Medicare Advantage 32 $120,600 $125,900 $5,300 4.4% Subtotal 461 $7,727,700 $7,355,700 -$372,000 -4.8% Kaiser HMO 0 $0 $0 $0 N/A HDHP 0 $0 $0 $0 N/A Senior Advantage 138 $397,900 $361,300 -$36,600 -9.2% Subtotal 138 $397,900 $361,300 -$36,600 -9.2% United Concordia HMO 216 $60,400 $60,400 $0 0.0% MES Vision (1),(2) HMO 0 $0 $0 $0 N/A Total Premiums $8,186,000 $7,777,400 -$408,600 -5.0% (1) Vision plan is bundled with the Non-Medicare Kaiser plan, which has no enrollment. (2) MES Vision rates are guaranteed through December 31,2024. 2021 Monthly Medical Rate Summary Blue Shield of California 14 Blue Shield -Access+ HMO (Full Network) Enrollment 2020 Rates 2021 Rates Percentage Change 2021 City Contribution 2021 Employee Contribution 2021 City Contribution Change 2021 Employee Contribution Change Active Single 47 $568.01 $587.89 3.50%$470.31 $117.58 $15.90 $3.98 Two-Party 26 $1,141.58 $1,181.54 3.50%$945.23 $236.31 $31.97 $7.99 Family 97 $1,668.89 $1,727.30 3.50%$1,381.84 $345.46 $46.73 $11.68 COBRA/Cal-COBRA Single 0 $568.01 $587.89 3.50% No City ContributionTwo-Party 0 $1,141.58 $1,181.54 3.50% Family 0 $1,668.89 $1,727.30 3.50% Blue Shield -Trio ACO HMO (Narrow Network) Enrollment 2020 Rates 2021 Rates Percentage Change 2021 City Contribution 2021 Employee Contribution 2021 City Contribution Change 2021 Employee Contribution Change Active Single 21 $463.16 $479.37 3.50%$383.50 $95.87 $12.97 $3.24 Two-Party 21 $930.86 $963.44 3.50%$770.75 $192.69 $26.06 $6.52 Family 43 $1,360.85 $1,408.48 3.50%$1,126.78 $281.70 $38.10 $9.53 COBRA/Cal-COBRA Single 0 $463.16 $479.37 3.50% No City ContributionTwo-Party 1 $930.86 $963.44 3.50% Family 1 $1,360.85 $1,408.48 3.50% 2021 Monthly Medical Rate Summary Blue Shield of California 15 Blue Shield -PPO Enrollment 2020 Rates 2021 Rates Percentage Change 2021 City Contribution 2021 Employee Contribution 2021 City Contribution Change 2021 Employee Contribution Change Active Single 166 $661.57 $627.83 -5.10%$502.26 $125.57 ($26.99)($6.75) Two-Party 127 $1,325.41 $1,257.81 -5.10%$1,006.25 $251.56 ($54.08)($13.52) Family 322 $1,991.63 $1,890.06 -5.10%$1,512.05 $378.01 ($81.26)($20.31) COBRA/Cal-COBRA Single 3 $661.57 $627.83 -5.10% No City ContributionTwo-Party 0 $1,325.41 $1,257.81 -5.10% Family 1 $1,991.63 $1,890.06 -5.10% Retiree Single 293 $1,106.36 $1,051.48 -4.96% VariesTwo-Party 128 $2,212.57 $2,102.83 -4.96% Family 8 $3,318.89 $3,154.27 -4.96% Blue Shield -Medicare Advantage Enrollment 2020 Rates 2021 Rates Percentage Change 2021 City Contribution 2021 Employee Contribution 2021 City Contribution Change 2021 Employee Contribution Change Over 65 Retiree 32 $314.13 $327.87 4.37%VariesSingle 2021 Monthly Medical Rate Summary Kaiser Kaiser Permanente -HMO Enrollment 2020 Rates 2021 Rates Percentage Change 2021 City Contribution 2021 Employee Contribution 2021 City Contribution Change 2021 Employee Contribution Change Active Single 132 $482.33 $458.21 -5.00%$366.57 $91.64 ($19.30)($4.82) Two-Party 115 $964.65 $916.42 -5.00%$733.14 $183.28 ($38.58)($9.65) Family 215 $1,364.99 $1,296.73 -5.00%$1,037.38 $259.35 ($54.61)($13.65) COBRA Single 1 $482.33 $458.21 -5.00% No City ContributionTwo-Party 1 $964.65 $916.42 -5.00% Family 0 $1,364.99 $1,296.73 -5.00% Under 65 Retiree Single 0 $1,647.01 $1,647.01 0.00% VariesTwo-Party 0 $3,294.03 $3,294.03 0.00% Family 0 $4,661.05 $4,661.05 0.00% Kaiser Permanente -Deductible HMO Middle Plan ($20 Copay) Enrollment 2020 Rates 2021 Rates Percentage Change 2021 City Contribution 2021 Employee Contribution 2021 City Contribution Change 2021 Employee Contribution Change Active Single 2 $427.82 $406.43 -5.00%$325.14 $81.29 ($17.11)($4.28) Two-Party 1 $855.64 $812.86 -5.00%$650.29 $162.57 ($34.22)($8.56) Family 0 $1,210.72 $1,150.19 -5.00%$920.15 $230.04 ($48.42)($12.11) COBRA Single 0 $427.82 $406.43 -5.00% No City ContributionTwo-Party 0 $855.64 $812.86 -5.00% Family 0 $1,210.72 $1,150.19 -5.00% 16 2021 Monthly Medical Rate Summary Kaiser 17 Kaiser Permanente -Deductible HMO Low Plan ($30 Copay) Enrollment 2020 Rates 2021 Rates Percentage Change 2021 City Contribution 2021 Employee Contribution 2021 City Contribution Change 2021 Employee Contribution Change Active Single 34 $326.91 $310.57 -5.00%$248.46 $62.11 ($13.07)($3.27) Two-Party 10 $653.83 $621.13 -5.00%$496.90 $124.23 ($26.16)($6.54) Family 11 $925.20 $878.93 -5.00%$703.14 $175.79 ($37.02)($9.25) COBRA Single 0 $326.91 $310.57 -5.00% No City ContributionTwo-Party 0 $653.83 $621.13 -5.00% Family 0 $925.20 $878.93 -5.00% Under 65 Retiree Single 0 $1,421.65 $1,421.65 0.00% VariesTwo-Party 0 $2,843.29 $2,843.29 0.00% Family 0 $4,023.25 $4,023.25 0.00% Kaiser Permanente -Senior Advantage Enrollment 2020 Rates 2021 Rates Percentage Change 2021 City Contribution 2021 Employee Contribution 2021 City Contribution Change 2021 Employee Contribution Change Over 65 Retiree 138 $240.25 $218.20 -9.18%VariesSingle 2021 Monthly Dental Rate Summary United Concordia (UCCI) 18 United Concordia (UCCI) -Dental HMO Enrollment 2020 Rates 2021 Rates Percentage Change 2021 City Contribution 2021 Employee Contribution 2021 City Contribution Change 2021 Employee Contribution Change Active Single 100 $20.75 $20.75 0.00%$16.60 $4.15 $0.00 $0.00 Two-Party 71 $38.05 $38.05 0.00%$30.44 $7.61 $0.00 $0.00 Family 183 $60.00 $60.00 0.00%$48.00 $12.00 $0.00 $0.00 COBRA Single 3 $20.75 $20.75 0.00% No City ContributionTwo-Party 1 $38.05 $38.05 0.00% Family 1 $60.00 $60.00 0.00% Retiree Single 102 $15.85 $15.85 0.00% No City ContributionTwo-Party 106 $28.85 $28.85 0.00% Family 8 $44.60 $44.60 0.00% United Concordia (UCCI) -Dental PPO Enrollment 2020 Rates 2021 Rates Percentage Change 2021 City Contribution 2021 Employee Contribution 2021 City Contribution Change 2021 Employee Contribution Change Active Single 278 $39.63 $39.63 0.00%$31.70 $7.93 $0.00 $0.00 Two-Party 206 $81.49 $81.49 0.00%$65.19 $16.30 $0.00 $0.00 Family 580 $135.84 $135.84 0.00%$108.67 $27.17 $0.00 $0.00 COBRA Single 12 $39.63 $39.63 0.00% No City ContributionTwo-Party 10 $81.49 $81.49 0.00% Family 5 $135.84 $135.84 0.00% 2021 Monthly Vision Rate Summary MES Vision 19 Note: Rates are guaranteed through December 31,2024. Medical Eye Services (MES) -Vision HMO Enrollment 2020 Rates 2021 Rates Percentage Change 2021 City Contribution 2021 Employee Contribution 2021 City Contribution Change 2021 Employee Contribution Change Active Single 257 $3.45 $2.30 -33.33%$1.84 $0.46 -$0.92 ($0.23) Two-Party 147 $6.90 $4.14 -40.00%$3.31 $0.83 -$2.21 ($0.55) Family 388 $8.97 $5.93 -33.89%$4.74 $1.19 -$2.43 ($0.61) COBRA Single 5 $3.45 $2.30 -33.33% No City ContributionTwo-Party 1 $6.90 $4.14 -40.00% Family 1 $8.97 $5.93 -33.89% Retiree Single 0 $3.45 $2.30 -33.33% VariesTwo-Party 0 $6.90 $4.14 -40.00% Family 0 $8.97 $5.93 -33.89% Medical Eye Services (MES) -Vision PPO Enrollment 2020 Rates 2021 Rates Percentage Change 2021 City Contribution 2021 Employee Contribution 2021 City Contribution Change 2021 Employee Contribution Change Active Single 158 $4.83 $3.40 -29.61%$2.72 $0.68 -$1.14 ($0.29) Two-Party 134 $9.70 $6.80 -29.90%$5.44 $1.36 -$2.32 ($0.58) Family 321 $12.65 $8.84 -30.12%$7.07 $1.77 -$3.05 ($0.76) COBRA Single 7 $4.83 $3.40 -29.61% No City ContributionTwo-Party 4 $9.70 $6.80 -29.90% Family 4 $12.65 $8.84 -30.12% 2021 Monthly Life and AD&D Rate Summary Voya 20 Voya -Life and AD&D Insurance (Rate per $1,000) 2020 Rates 2021 Rates Percent Change City Costs Basic Life $0.130 $0.130 0.00% Basic AD&D $0.020 $0.020 0.00% Voluntary Employee Costs Supplemental Life (Employee and Spouse) <30 $0.070 $0.070 0.00% 30-34 $0.100 $0.100 0.00% 35-39 $0.120 $0.120 0.00% 40-44 $0.180 $0.180 0.00% 45-49 $0.270 $0.270 0.00% 50-54 $0.440 $0.440 0.00% 55-59 $0.760 $0.760 0.00% 60-64 $1.170 $1.170 0.00% 65-69 $2.260 $2.260 0.00% 70-74 $3.660 $3.660 0.00% 75+$3.660 $3.660 0.00% Supplemental Dependent Life $0.200 $0.200 0.00% Supplemental AD&D Subscriber Only $0.050 $0.050 0.00% Family $0.080 $0.080 0.00% 2021 EAP, Flexible Benefits, and LTD Summary Optum, P&A Group, and Unum 21 Optum -EAP 2020 Rates 2021 Rate Percentage Change Active $1.74 $1.74 0.00% P&A Group -Section 125 Flexible Benefits 2020 Rates 2021 Rate Percentage Change FSA and/or DCAP $4.00 $4.00 0.00% Unum -Long Term Disability (Rate per $100) 2020 Rate 2021 Rate Percentage Change Long Term Disability $0.60 $0.60 0.00% Note: Rates are guaranteed through December 31,2022. │Principle Causes of Rate Change 22 Principle Causes of Rate Change Blue Shield of California, Kaiser, and MES Vision Carrier Rate Change Factors 23 Blue Shield of California (HMO Plans) •Medical claims increased by 31.3% •Pharmacy claims increased by 46.1% •Capitations increased by 10.4% •Claims experience accounts for 50% of rate development •No members reached the pooling point of $200,000 Blue Shield of California (Active PPO Plan) •Medical claims decreased by 17.1% •Pharmacy claims increased by 2.7% •Capitations increased by 49.4% •2 member reached the pooling point of $200,000 Blue Shield of California (Retiree PPO Plan) •Medical claims increased by 7.8% •Pharmacy claims decreased by 4.1% •Capitations increased by 49.4% •1 member reached the pooling point of $200,000 Kaiser (Active Plans)•Claims decreased by 8.8% •No members reached pooling point of $225,000 MES Vision •Premiums were reduced due to the City’s interest in an RFP for the 2022 plan year