1. City of Covington Employee Health Benefits November 16, 2010

2. City of Covington Health Care Plan Cost Summary Unit cost projection for 2010/2011 (red) based on 4 months of data with 14% medical trend. Unit cost projection for 2010/2011 (yellow) based on 4 months of data with 14% medical trend less claims above 50% of specific deductible. # Enrolled (avg.) 390386374380 369 Total Cost$4,522,723$4,510,315$4,754,159$4,896,323$5,522,107$7,417,129 369 $6,962,109 Projected

3. City KY Govt. Ben. Survey 2010 $14,532$10,028 Kentucky Government Benefits Survey (2010) Annual Unit Cost Comparison to City of Covington (2009/2010*) * Last complete plan year; KY Govt. Ben. Survey unit costs based on participants’ last complete plan years.

4. City KY Govt. Ben. Survey 2010 Single$530$411 Employee/Child$686 Employee/Spouse$808 Family$1,432$1,176 Kentucky Government Benefits Survey (2010) Monthly Total Premium Comparison to City of Covington (2009/2010) Two-tier premium equivalents used to illustrate what the City’s premiums would equate to on a fully-insured basis

5. City Police City Fire City AFSCME City Management KY Govt. Ben. 2010 Employee Deductible n/a $2,000 Family Deductible n/a $4,000 Coinsurancen/a 80%/20% Office Visits$15 $20 Emergency Room Visits $75 $150 Employee out- 0f-pocket max.* n/a $1,000$3,000 Family out-of- pocket max.* n/a $2,000$6,000 Prescriptions$50/$50 $10/$30/$60 Kentucky Government Benefits Survey (2010) * Out-of-pocket maximum includes deductible

6. City Police City Fire City AFSCME City Management KY Govt. Ben. Survey 2010 Single$18$54n/a$26$36 Employee/Child$54 n/a$26$92 Employee/Spouse$54 n/a$26$136 Family$54 n/a$26$180 Kentucky Government Benefits Survey (2010) Monthly Employee Premium Comparison to City of Covington

7. City Police City Fire City AFSCME City Mgmt. Govt. A Govt. B Govt. C Plan 1 Govt. C Plan 2 Govt. D** Govt. E Number Enrolled36935117127888235 Employee Deductible n/a $2,000 $1,000$250$2,000$750 Family Deductiblen/a $4,000 $2,000$500$4,000$1,500 Coinsurance (%)n/a 80/20n/a 80/20 n/a85/15 Office Visits$15 $20$25 $15 Emergency Room Visits $75 $100 $125 $100 Employee out- 0f-pocket max.* n/a $1,000$2,000 $3,000$1,750$2,000$1,500 Family out-of- pocket max.* n/a $2,000$4,000 $6,000$3,750$4,000$2,250 Monthly Premiums Single EE/C EE/S Family $18 $54 n/a $26 $41 $80 $87 $130 $25 $53 $58 $75 $16 $35 $41 $50 $28 $60 $72 $104 $80 $145 $170 $259 $25 $80 Kentucky Government Benefits Survey (2010) Governments A-E include the following: Cities of Florence and Newport, Kenton County Fiscal Court, Boone County Fiscal Court, and Sanitation District No. 1 *Out-of-pocket maximum includes deductible **Govt. D has two plans, but the second plan only has two enrollees so was not included in this summary

8. Benchmark: Employee Claims greater than 62% and Spousal Claims less than 26%

11. Questions? Mark Morgan SHERRILL MORGAN mark@sherrillmorgan.com