1. 2020 Medical Plan Projections
September 10, 2019

2. Fixed Costs and Rebates
Administration fees for medical and pharmacy will continue at current levels for three years.
Fees for HRA, HSA, and FSA account administration will continue at current levels for three years.
Premium for Aggregate stop loss will continue at current level
Estimated Pharmacy rebates of approximately $985,000 during 2020

3. Claims Projections
Used claims incurred 5/1/18 – 4/30/19 and paid through 5/31/19
There were two claims above $450,000 individual stop loss level during 2018 and none year-to-date in 2019
Claims were projected forward assuming 6% annual trend for medical and 8% for pharmacy
Based on market averages, PreferredOne/Navitus actuarial estimates and County experience

4. Recommended Rate Action:
Advantage 9.9%
HSA 6.0%
Select 7.0%

5. 2019 Premium Benchmarks
Charts show weighted average premiums for all plans offered by each county

6. Historical Premiums Comparison to old HealthPartners insured rates
Self Insured
2011 Total Premiums were not exceeded until 2019
Purple line shows hypothetical insured premiums with 4% increases each year from ’12 onward
Significant savings resulting from self-insuring in ’13 – premium reductions plus accumulated reserves

7. Paid Parental Leave
September 10, 2019

8. Paid Parental Leave
Paid Parental Leave is paid time for parents to bond with a child following:
the birth of a child
placement of a child in employee’s home for adoption
placement of a child in the employee’s home in cases of surrogacy when the employee is the intended parent

9. Prevalence of Paid Parental Leave
Hennepin County 3 weeks Ramsey County 3 weeks City of Minneapolis 3 weeks City of St. Paul 4 weeks for mother; 2 weeks for other parent State of MN 6 weeks

10. Estimated Cost of Offering PPL
Estimated cost of implementation
On average 100 employees per year take maternity/paternity leaves
Average wage of County employees $34.28/hr.
2 weeks x $34.28 x 100 employees = $274,240
3 weeks x $34.28 x 100 employees = $411,360
6 weeks x $34.28 x 100 employees = $822,720
12 weeks x $34.28 x 100 employees = $1.6 mil