1. HEALTH INSURANCE PROGRAM

2. Health Insurance Program Overview  Historically experienced double-digit premium increases through 2010  Developed Interdisciplinary Team  Turned Program Upside Down in 2011  Self-Insured  Added Clinic Concept  Developed High-Deductible Health Plan Promoted consumerism and saving

3. Medical Plan Costs Plan Costs Includes ALL Medical Plan Program Costs *Projected Costs Based on Aon Hewitt Health Value Initiative 2013 (national average for healthcare premium increases) $7,082$7,623 $8,151 $7,605 $7,411$8,697$9,362$9,762$10,145 Per Employee

4. Proposed Changes  Stop-Loss Insurance Carrier  Ancillary Coverage Carrier

5. Stop-Loss Insurance  Limits City’s financial claim’s liability  Pays claim costs over $125,000 per claim  Currently with BCBS  Sought quotes from alternate providers

6.  SunLife Proposal Provides a Decrease in Rate  Recommend change to SunLife for Stop Loss CurrentBCBS ProposalSunLife Proposal QuoteChangeQuoteChange $354,804$417,342$62,538$279,934($74,870) Stop-Loss Insurance Quotes

7. Ancillary Coverages  Includes:  City-Provided Life Insurance and AD&D  City-Provided Long-Term Disability Insurance  Employee Purchased Voluntary Dental  Employee Purchased Voluntary Life Insurance  Employee Purchased Short-Term Disability  Current Carrier – Lincoln Financial

8. Ancillary Coverages  Employee-Paid Coverage 2015 Rates the Same for Both Providers  Dental  Voluntary Life  Short-term Disability

9.  Life & AD&D  Long-Term Disability Lincoln Financial ProposalMutual of Omaha Proposal Current/Renewal ChangeQuoteChange $24,4470$29,685$5,238 Ancillary Coverage Quotes Lincoln Financial ProposalMutual of Omaha Proposal Current/Renewal ChangeQuoteChange $35,7770$48,161$12,384

10. Ancillary Coverages  Recommend Change to Mutual of Omaha for Ancillary Coverage  Mutual of Omaha previous provider  Mutual of Omaha superior customer service experience – both Employer and Employee related

11. Recommendations  Change to SunLife for Stop Loss Coverage  Change to Mutual of Omaha for Ancillary Coverage  Total Net Savings:$57,248