Health care costs 2/1/09-1/31/10
Active Employees Traditional Health Plan Single Couple Family Sub-total PPO Single Couple Family Sub-Total
Number of Enrollees
Retirees Traditional Health Plan Single Couple Family Sub-total
Cost per month
Cost per Year
Cost for HDMP
Times number of enrolles
Diff
Monthly cost Annual Cost of of enrolless enrollees <$100K >$100K
Annual cost of enrolless <$100K
132 51 273 456
455.22 918.53 1,254.73
60,089.04 46,845.03 342,541.29 449,475.36
721,068.48 562,140.36 4,110,495.48
364.18 734.82 1,003.78
91.04 183.71 250.95
$ $ $
12,018 9,369 68,508
13 5 27
119 46 246
3,846 1,236 9,022
38,938 8,834 78,903
46,148.38 14,837.83 108,263.26
467,252.38 106,008.50 946,837.36
13 13 23
437.01 881.83 1,204.54
5,681.13 11,463.79 27,704.42 44,849.34
68,173.56 137,565.48 332,453.04
364.18 734.82 1,003.78
72.83 147.01 200.76
$ $ $
947 1,911 4,617
1 1 2
12 12 21
379 532 1,027
3,835 2,496 6,948
4,544.92 6,387.15 12,322.66
46,017.28 29,952.35 83,371.96
4 5 9
373.29 753.21 1,028.86
1,493.16 3,766.05 9,259.74 14,518.95
17,917.92 45,192.60 111,116.88
364.18 734.82 1,003.78
9.11 18.39 25.08
$ $ $
36 92 226
0 1 1
4 5 8
117 384 579
1,180 1,162 2,918
1,398.44 4,608.06 6,949.99
14,159.16 13,940.53 35,017.90
32 7 14
403.54 814.23 1,112.19
12,913.28 154,959.36 5,699.61 68,395.32 15,570.66 186,847.92 34,183.55 Cost per month Cost per Year
364.18 734.82 1,003.78
39.36 79.41 108.41
$ $ $
1,260 556 1,518
3 1 1
29 6 13
932 421 739
9,439 1,495 4,357
11,187.49 5,052.83 8,868.80
113,273.30 17,943.49 52,287.21
868,559.76 154,313.04 2,815,614.12
364.18 734.82 1,003.78
91.04 183.71 250.95
$ $ $
14,476 2,572 46,927
159 14 187
-
52,114 2,922 60,131
-
625,363.03 35,067.24 721,568.83
10,488.24 10,581.96 57,817.92
364.18 734.82 1,003.78
72.83 147.01 200.76
$ $ $
146 147 803
2 1 4
-
656 513 1,607
-
7,866.20 6,157.01 19,283.64
9,038.52 -
734.82
18.39
$
18
$ $
166,146 1,993,758
POS - $5 co-pay Single Couple Family POS - $10 co-pay Single Couple Family Sub-Total
Cost per Enrollee
See scenario assumptions below Monthly No of No of Cost of enrollees enrolless enrollees >$100K <$100K >$100K
Number of Enrollees
Cost per Enrollee
159 14 187 360
455.22 918.53 1,254.73
2 1 4 7
437.01 881.83 1,204.54
72,379.98 12,859.42 234,634.51 319,873.91
Total annual cost w/copremiums to HDMP
PPO Single Couple Family Sub-Total POS - $5 co-pay Single Couple Family Sub-Total
0 1 0 1
753.21
874.02 881.83 4,818.16 6574.01
753.21 753.21
POS - $10 co-pay Single Couple Family 376 Total projected annual costs for enrollment
$
10,442,740
Monthly > Annualized >
230,569.82
3,341,367.37
3,571,937.19
HDMP---Assuming PPO with minimum necessary deductible to qualify as HDHP Every carrier will evaluate the rating differently, so we have assumed that most would take the decrement off of the plan with the most enrollees----hence rates tie back to those calculated off of the Traditional Plan. Number of Cost per Cost per Enrollees Enrollee month Cost per Year Active Employees Traditional Health Plan (estimated savings 20% for plan with 90/70 benefit after ded) Single 132 364.18 48,071.23 576,854.78 Couple 51 734.82 37,476.02 449,712.29 Family 273 1,003.78 274,033.03 3,288,396.38 Sub-total 456 359,580.29 PPO Single 13 364.18 4,734.29 56,811.46 Couple 13 734.82 9,552.71 114,632.54 Family 23 1,003.78 23,087.03 277,044.38 Sub-Total 37,374.03 POS - $5 co-pay Single Couple Family POS - $10 co-pay Single Couple Family Sub-Total Retirees Traditional Health Plan Single Couple Family Sub-total
4 5 9
364.18 734.82 1,003.78
32 7 14
364.18 734.82 1,003.78
Number of Enrollees
Cost per Enrollee
159 14 187 360
364.18 734.82 1,003.78
2 1 4 7
364.18 734.82 1,003.78
1,456.70 3,674.12 9,034.06 14,164.88
17,480.45 44,089.44 108,408.67
11,653.63 139,843.58 5,143.77 61,725.22 14,052.98 168,635.71 30,850.38 Cost per month Cost per Year 57,903.98 10,287.54 187,707.61 255,899.13
694,847.81 123,450.43 2,252,491.30
PPO Single Couple Family Sub-Total POS - $5 co-pay Single Couple Family Sub-Total
0 1 0 1
734.82
728.35 734.82 4,015.14 5478.312
8,740.22 8,817.89 48,181.63
8,817.89 -
734.82 734.824
POS - $10 co-pay Single Couple Family 376 Total projected annual costs for enrollment Savings for going to a HDMP
$
8,448,982 $
1,993,758
Scenarios: Up to $99,999 in income the employee pays 10% of the monthly premium For those who make $100K or more, they pay 20% of the monthly premium All employees must attest annually during open enrollment whether or not they smoke. Any employee can report another who is smoking and a random breathalyzer test can be used Smokers must pay double the premium in each income group - up to $99,999 in income, the employee pays 20%. For those who earn $100K or more they pay 40%. Employee pays 50% of the premium above the single rate to offset the additional cost of dependents. For example, a HDMP family costs $1,003.78. The single plan is $364.18. $ 1,003.78 (364.18) $ 639.60 639.60 x .5=
$
319.80
The employee pays an additional 319.80 towards his monthly premium. If he makes more than $100K, he pays. 364.18 x .20 = $72.84 for his portion and $319.80 for his dependents for a total of $392.64 a month For smokers $364.18 x .4 = $145.67 + 319.64 for their dependents. For a total of $465.31 a month
Let's look at the savings if we make the unrealistic assumption that no one smokes. Let's assume that only 10% of active employees make more than $100K and all retirees make less than $100K. Savings for just going to a HDMP over projected costs with change as of 2/1 Cost of healthcare costs for HDMP with co-premiums 2007/2008 cost of healthcare Projected costs with Change as of 2/1
$ $ $ $
1,993,758 3,571,937 10,400,000 8,448,982
Savings over 2007/2008 expense Savings over Projected costs with change as of 2/1
$ $
6,828,063 4,877,045