University Medical Center of El Paso (UMC) Retiree Benefits Effective January 1, 2017

Agenda Introduction of UMC Retiree Medical and RX Benefit Plan UMC Retiree Benefit Plan Qualifications UMC Retiree Provider Network Premiums Rate Comparison Overview of Cost for Retiree Plan Open Enrollment and Benefit System Configuration Timeline

Introduction This presentation is a proposed amendment to the FY2017 UMC Health Benefit Plan Document. The proposed self-funded Retiree Plan to be effective January 1, 2017 20 years of service at either UMC (hospital/clinics), El Paso First Health Plans or UMC Foundation plus eligible for retirement according to TCDRS rules. Retiree Plan will include both medical and pharmacy coverage and will use the same provider network as the current employee medical plan with the exception of different premiums UMC will have the flexibility to re-design its own Retiree benefit plan and premiums Preferred Administrators has consulted with the PHIA Legal Group on this proposed Retiree benefit Plan

Qualifications to Receive Retiree Medical and RX Benefits to be effective January 1, 2017 Any Age: 20 or more years of service and have currently elected COBRA Any Age: 20 or more years of service and retired after January 1, 2017 20 years of service at either UMC (hospital/clinics), El Paso First Health Plans or UMC Foundation plus eligible for retirement according to TCDRS rules. Retirees will be able to enroll their eligible Spouse, and Dependents Retiree benefits will only be offered this benefit up to when the Retiree reaches the age of 65 or starts receiving Medicare

UMC Retiree Medical Provider Network Preferred Administrators provides options for Members to receive services from providers who have been contracted by Preferred Administrators. Preferred Administrators rewards Members with increased benefit coverage amounts based on the providers selected as described in the Summary of Benefits. The richest benefit amounts are provided when Members use University Medical Center of El Paso facilities and professional services. Benefit coverage amounts are based on a traditional benefit plan design using Preferred Provider Networks to include our extended national network with Multiplan/PHCS. Through the Multiplan and PHCS, the same advantages are provided to members who live, work, or travel outside of the service area.

Retiree Monthly Medical Premium Rate Comparison El Paso County: http://www.epcounty.com/auditor/payroll/retirement.htm#rates El Paso City: https://www.elpasotexas.gov/~/media/files/coep/risk%20management/cy2016%20retiree%20rate%20sheet.ashx?la=en

Historical Medical and RX Costs 5-Year Look Back (FY2012 – FY2016) 1,990 employees left employment and were offered COBRA 115 (6%) of those had 20+ years of service 20 (17%) elected COBRA 7 not eligible due to age limitation of 65 13 would have been eligible to receive Retiree benefits.

Medical and Rx Costs 5-Year Analysis (FY2012 – FY2016)

Medical and RX Costs for Current COBRA Members 6 Qualified Members for Soft Rollout : Eligible for New Post-Retirement Benefits effective January 1, 2017 20 years of service at either UMC (hospital/clinics), El Paso First Health Plans or UMC Foundation plus eligible for retirement according to TCDRS rules. 4 Members with Employee-Only Coverage 2 Members with Employee-Spouse Coverage

Medical and Rx Costs Current COBRA Members

Current Population eligible to receive Retiree benefits UMC has approximately 200 employees who have 20+ years of service and are eligible for TCDRS retiree benefits Retiree Medical Benefits will be offered upon retirement effective January 1, 2017

Current Population for Possible Retiree Benefits – FY2015 Med/RX costs

Current Population for Possible Retiree Benefits – FY2016 Med/RX costs

Open Enrollment Draft Timeline for the 6 eligible COBRA Members Retiree Enrollment Marketing Communications Week (Soft Roll-out) 11/14/16 through 11/18/16 Enrollment Week 11/28/16 through 12/2/16 Internal Enrollment Processing 12/5/16 12/23/16 Enrollment Packets will be mailed out (Member ID Cards/Packages) 12/27/16

Benefit System Configuration Draft Timeline Benefit Set Up 11/21/16 Test Benefit Setup and Configuration 12/12/16 Finalize Configuration 12/19/16

Thank you Any Questions?