Health Plans for Arizona Cities and Towns (HPACT) A Valley Schools-exclusive program update 2017

Who is HPACT/Valley Schools? How do we help you save? Valley Schools/HPACT: Looking to the future of healthcare and cost savings 2

HPACT is a Valley Schools-exclusive program crafted for the unique employee benefits needs of Arizona government agencies. This includes cities and towns of all sizes, state administrative departments, utilities, fire, police and library districts as well as federal agencies, native governments and more. 3

On your behalf, Valley Schools will: Evaluate all benefit plans (health, dental, life, flex, vision, etc.) for benefit and cost improvement Evaluate all incumbent provider renewals as well as offer alternative provider options Most important ... Help your municipality SAVE $$$ that can be reallocated elsewhere! We Advise – You Decide! We recognize individual municipality benefits and plan designs are unique to your needs and culture. 4

Looking to the Future of Healthcare What does every employee want? Affordable, comprehensive coverage for themselves and family that doesn’t degrade year after year. What does every employer want? Budget friendly coverage meeting employee needs with cost stability year after year that is competitive with neighboring municipalities. 5

Cost of family coverage has increased 58% since 2006 Healthcare Nationally 2016 Average Annual Premium Costs for Employer-Sponsored Health Insurance $6,435 single coverage $18,142 family coverage Employers are still subsidizing a portion of available plans, but the amount varies greatly by region, plan design and industry. Employees on average are paying 18% of the premium for single coverage and 30% for family coverage. With benefits being 60% of your overall budget, managing your healthcare is critical and also contributes to recruiting and retaining employees. We don’t really need to see these figures to know how that the cost of healthcare has skyrocketed the last 10 years. The number one concern we hear year after year for the 24 groups we work with is finding a way to provide affordable family coverage. Cost of family coverage has increased 58% since 2006 Kaiser Family Foundation 2016 Employer Health Benefits Annual Survey

Looking to the Future of Healthcare Fully Insured or Self-Funded More employers are seeking self-funded options = more control over plans and rates, even with groups under 500 lives Pooling: HPACT/Valley Schools added a dental and vision pool to help stabilize costs Narrow Networks for medical and pharmacy Deeper negotiated discounts with providers to save both the employee and the plan High Performance Physicians/Tiered Networks – Designation of higher performing physicians or facilities for efficiency and patient outcomes Virtual and/or Telemedicine On-site or near-site health clinics Leverage advanced technology for health tools, education, applications, and online enrollment Comprehensive wellness initiatives Controlling costs 7

Value of Wellness For every $1 spent on Wellness Programs: Medical costs fall by $3.27  Absenteeism costs fall by $2.73 On average claims are $1,500 higher among those not participating in a Wellness Program Valley Schools and HPACT Wellness Program includes: Dedicated Wellness Coordinator Wellness Champion Program Management and Training Access to the WellStyles platform and incentive administration On-site visits (presentations, health coaching, and more!) Management of a Champion Program Facilitation of on-site screenings and health fairs Monthly WellStyles Newsletter Program Marketing Materials to Employees Gym Discounts More participation = Greater Savings Other Savings: Cost of Recruitment Cost of New Hires Workers Comp Pharmacy 8

We are here to help you! myvalleyschools.org HPACT and Valley Schools exists to save governmental entities on benefits consulting and all benefit related services and products. Contact us to become a member at no cost! Sheri Gilbert, Senior Account Executive Office: (623) 455-3199 Email:   sgilbert@vsit.org myvalleyschools.org