1 / 17

Benefit Taskforce Review and Recommendation March, 2011

Benefit Taskforce Review and Recommendation March, 2011. Assignment. Complete a benchmarking study Recommend a plan to reduce cost of benefits by 5% of employer contribution Revise the philosophy of compensation Maintain high quality health coverage for employees and their families

yoshe
Download Presentation

Benefit Taskforce Review and Recommendation March, 2011

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Benefit TaskforceReview and RecommendationMarch, 2011

  2. Assignment • Complete a benchmarking study • Recommend a plan to reduce cost of benefits by 5% of employer contribution • Revise the philosophy of compensation • Maintain high quality health coverage for employees and their families • Implement June 1, 2011

  3. Benefit Taskforce Judy Korb – Chair Jeff Anderson Becky Centlivre Judi Guzzy Ellen Fisher Justin Stanley Shannon Ford Ron Palcic Mitch Borchers Tom Hughes Renee Portman Terri Kurtz Terry Horan Teresa Schmitz Lori Vogelsberg Candy Finch Jerry Zimmerman (ex-officio)

  4. Benefits Benchmarking League Board Schools 15 Large/Xlarge Regional Schools 10 Large/Xlarge Other Schools 8 Local Educational Institutions 7 Responses were received from 23 of the 40 institutions representing a 58% response rate, most notably with 80% of the League Board Schools responding

  5. Benefits Benchmarking Summary • 6 institutions (including JCCC) provide some form of flex-credits for benefits • 14 institutions provide “individual” health coverage at no cost to the employee • 11 institutions require employee contributions toward “dependent” health coverage • 7 institutions require employees to contribute to all categories of health coverage • 3 institutions provide full health coverage for individual and dependent health care

  6. 5% Baseline Full-time employees – 1,000 Flex Credits (1,108.94x 1,000 x 12) $13,307,208 FY09 Subsidy (from flex credit reduction)971,280 FY10 Subsidy (from budget) 623,818 7% 403(b) Contribution 4,010,671 Total $18,921,977 $945,649 - Targeted Cost Savings

  7. Cost-sharing $945,649 /1,000 employees/12 months = $78.80 per employee per month

  8. Considerations • Medical Premiums • Adjusted Premiums • HMO, PPO and HDHP Plans • KPERS Compensation • Base Salary • Flex Credits • 7% Employer Contribution 0.4% increase

  9. Premium Adjustments • 0.4% initial increase in premium • 1% decrease in premium due to slight plan design change • True premiums reflected for HMO, PPO and HDHP plans • Decrease in subsidy by $945,649 (5% cost savings) • Increase in subsidy of $77,959 due to BCBSKC reimbursement

  10. Benefit Plan Recommendation • Decreased Subsidy • Employees enrolled in the JCCC medical plan will pay $78.80/month for premiums through salary reduction or flex credits. • Employees opting out of the JCCC medical plan will pay $85.80/month through flex credits for a new wellness plan which includes a $78.80 fee. • Flex credits will remain the same ($1,108.94/mo) • The JCCC 403(b) contribution will remain the same (7%)

  11. Monthly Premium - HMO • HMO2010/20112011/2012 • Flex Credit $1,108.94 $1,108.94 • Single HMO - 404.68 - 504.28 • Delta Dental - 32.42 - 32.42 • Life Ins. ($50K) - 7.25- 7.25 • Balance $ 664.59 $ 564.99 • Flex Credit $1,108.94 $1,108.94 • Family HMO - 1,017.78 - 1,143.44 • CIGNA Dental - 77.40 - 77.40 • Life Ins ($50K) - 7.25- 7.25 • Balance $ 6.51 -$ 119.15

  12. Monthly Premium - PPO PPO2010/20112011/2012 Flex Credit $1,108.94 $1,108.94 Single PPO - 731.12 - 480.59 Delta Dental - 32.42 - 32.42 Life Ins. ($50K) - 7.25- 7.25 Balance $ 338.15 $ 588.68 Flex Credit $1,108.94 $1,108.94 Family PPO - 1,778.89 - 1,083.90 CIGNA Dental - 77.40 - 77.40 Life Ins ($50K) - 7.25- 7.25 Balance-$ 754.60-$ 59.61

  13. Monthly Premium –HDHP and Opt Out HDHP2010/20112011/2012 Flex Credit NA $1,108.94 Family HDHP NA - 937.66 CIGNA Dental NA - 77.40 Life Ins. ($50K) NA - 7.25 Balance $ 86.63 OPT OUT Flex Credit $1,108.94 $1,108.94 A Healthier You NA - 85.80 CIGNA Dental - 24.76 - 24.76 Life Ins ($50K) - 7.25- 7.25 Balance $1,076.93 $ 991.13

  14. Opt-Out 2010/20112011/2012 OPT OUT Flex Credit $1,108.94 $1,108.94 A Healthier You NA - 85.80 CIGNA Dental - 24.76 - 24.76 Life Ins ($50K) - 7.25- 7.25 Balance $1,076.93 $ 991.13 $78.80 cost sharing 7.00 A Healthier You $85.80

  15. BCBS WELLNESSA Healthier You™ BCBS’s A Healthier You includes a comprehensive, integrated program of services to promote optimal health outcomes. • Assessment • Onsite health screenings • Online Health Risk Appraisal (HRA) • Interventions • Online coaching modules • Telephonic lifestyle coaching • Online education resources • Onsite and webinar education classes • Prevention programs • Case management • Incentives • The Points to Blue Incentive Program

  16. Summary • Employees are contributing to the cost of medical (subsidy dropped from 20% to 8%) • Flex credits will cover cost of full-family coverage (HDHP) • Premiums adjusted by BCBSKC reimbursement and plan design changes • Wellness focus

  17. QUESTIONS?

More Related