1. 2012 / 2013 Benefits Open Enrollment Murray School District

2. Consulting | Health and Benefits Proprietary & Confidential | Point of View 02/2012 1 Why do my medical premiums keep going up? Unsustainable Rise in Health Care Costs  Health care costs have risen more than 50% since 2006, to nearly $13,000 in 2012 –portion absorbed by employees through payroll contributions and out of pocket cost has risen 82% in that time span, with the average employee spending nearly $5,000 per year in 2012  At expected market trend of 9%, health care premiums will exceed $16,000 in 2017, not including employee out of pocket costs +52% Source: Aon Hewitt Health Value Initiative, 2011 Analysis $2,516 $4,581 $8,374 $12,759

3. Murray School District Is Not Immune to this trend

4. The District Administration has done it’s best to mitigate these costs

5. Murray pays a higher % of Medical premium than most employers

6. 5 Top 15 Most Costly Conditions Lack of Health Screening Poor Stress Management Smoking Physical Inactivity What is driving these costs?… Human Behavior 80% of Total Costs of all Chronic Illnesses Worldwide Sources: 2010 World Economic Forum Diabetes CAD Hypertension Back Pain Obesity Cancer Asthma Arthritis Allergies Sinusitis Depression CHF COPD CKD High Cholesterol Insufficient Sleep Poor Standard- of-Care Compliance Alcohol Consumption Poor Diet 8 Behaviors and Risks 1 Based on Carrier gaps in care report 2 Based on self insured claims incurred 6/2010-5/2011 Consulting | Health and Benefits Proprietary & Confidential | Point of View 02/2012

7. 6 Worsening Health Risk – A National Problem of children in the U.S. are overweight or obese 32% of Americans will be overweight or obese by 2030 based on current trends of all medical spending is accounted for by obesity, compared to 6.5% in 1998 increase in claims cost for each unit increase of BMI the new onset of diabetes for a weight gain of 11–18 pounds over 10 years of adults in the U.S. are overweight and 34% are obese deaths per year may be attributable to obesity increase in the risk of coronary heart disease mortality for each 2.2 pound increase in body weight It starts with Obesity: know the NUMBERS 86% 300,000 1%–1.5% 2.3% 10% 33% Double

8. Consulting | Health and Benefits Proprietary & Confidential | Point of View 02/2012 7 And it doesn’t just affect Medical costs Average number of work days per year per employee lost specifically to obesity related issues / illness. Increase in workers compensation claims per 100 employees per year for ee’s with a BMI >39 vs. recommended BMI Increased likelihood of having workplace limitations or accommodations due to obesity related physical restrictions 2004 nationwide employer costs due to obesity related employee absences increase in duration of WC disability claims for employees with BMI >39 Absenteeism and “Presenteism” 2 Days $4.3 Billion 5 x $51,091 vs. $7,503 5.85 6% Average per 100 employee WC medical claim cost for obese vs. recommend weight ee.

9. WHY WALKING? Walking is a simple, cost-effective way to lower healthcare costs, boost productivity, reduce workers’ compensation claims, and improve chronic health conditions such as diabetes, high blood pressure, high cholesterol, and depression. Walking can also help you to reduce stress and manage your weight.

11. SelectHealth is more than just your health plan – we’re your health and wellness partner. A little effort today can have big results tomorrow.

12. Member Discounts We work with local and national vendors so that you can receive discounts to many health-related services. To receive these discounts, just show your SelectHealth ID card. Visit www.selecthealth.org/discounts to learn more. Health clubs & fitness centers Personal Training Vitamins & nutritional supplements Spas & cosmetic services Massage therapy & acupuncture Chiropractic services Hearing aids