1. 1 Employee Health and Accident Fund FY 2015-16 Plan Modifications

2. Underlying Market and Demographic Issues Affordable Care Act does increase upward rate pressure Recent data suggest a 9.9% increase in costs Rx Costs are increasing at higher rate than medical services Demographics of the Health Plan will increase upward rate pressure Current average age of member is 51 Retiree membership continues to make up a larger share of total membership

3. Employee Cost Impacts Tier2014 Emp. 2015 Emp. Bi-week Increase Annual Increase Indv.23.4039.5016.10418.60 Emp/Sp171.64199.4227.78722.28 Emp/Ch112.39132.4520.06521.56 Family214.19248.6134.42894.92

4. Possible Plan Provisions to Modify Deductible Max Out of Pocket Include an Rx Deductible Increase ER Co-pay to $250 ER visits increased 25.4% ER costs increased 37.2% Need to modify behavior

5. Modification Impact on Premium BenefitCurrentProposed% Change Deductible500/1500550/1650-.4% Deductible500/1500600/1800-.79% MOP3000/60004000/7500-1.29% MOP3000/60004250/8500-1.55% ER Copay100250-.52% Rx Ded.N/A150-1.42%

6. Proposed Modifications in RED BenefitCurrentProposed% Change Deductible500/1500550/1650-.4% Deductible500/1500600/1800-.79% MOP Max3000/60004000/7500-1.29% MOP Max3000/60004250/8500-1.55% ER Copay100250-.52% Rx Ded.N/A150-1.42%

7. Employee Cost Impacts With Changes Tier2014 Emp. 2015 Emp. Bi-week Increase Annual Increase Indv.23.4034.6411.24292.24 Emp/Sp171.64189.818.16472.16 Emp/Ch112.39125.6613.27345.02 Family214.19236.2622.07573.82

8. Employee Cost Impacts Tier2014 Emp. 2015 Emp. Bi- week Annual# Emp Indv.23.4039.5016.10418.60906 Emp/S171.64199.4227.78722.28187 Emp/C112.39132.4520.06521.56162 Family214.19248.6134.42894.92595

9. Impact Demographics Benefit# Members Total Members/ Contracts % Of Total 500 Ded1563494731% Fam. Ded 1500 7562312% MOP8549471.7% MOP Fam. 2623.3%

10. Claims Payment Facts Average Claims Cost per Member - $4,200 Maximum Impact of All Changes - $1000 Minimum Claims Payments to Max Impact – $16,250 Number of Members >$15,000 in Claims 276 Percentage of Total Membership - 5.5%

11. Discussion Items Premiums are increasing because costs are increasing How does the Plan pay for the increased costs? Revenue Solution -Increase Premiums to reflect cost increase Cost Solution – Reduce benefits to reflect current revenues Balanced Solution – Looks at both sides of the equation Modify Benefits for some upward premium pressure relief More moderate premium increases to address cost increases

12. What is this Really all about?