USE 2017 APR

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Historic Renewal
Medical
Cigna 2016 Renewal
 Loss Ratio
• Incurred Through April 2015 – 76.66%
• 10 Claimants > $25,000
• Loss Ratio Less Claims over $100k pooling ($108,422.99) – 68%
• Prior through May 2014 – 88.33 %
 Initial Cigna Renewal – 9.57%
• No Plan Changes
• Unable to provide unblended increase
 Market Results – Competitive Options
• Aetna – Blended .04%
• BCBSKC FI - 0%
• BCBSKC CP – 1st Year Ex (13.9%)
 1st Year Max - (1.0%)
• Humana – Blended 4.66%
• UHC – 9.2%
• Cigna FINAL Renewal – 5%
 Final Decision –
• Moved to Blue Cross Cost Plus Option
• 1st Year Ex (13.9%)
 1st Year Max - (1.0%)
• Funding to Max 1st year
• 3% rate cap for 2017 on admin and access fees
• Matching Current Plan Designs
• $10,000 Wellness Fund
• Pooling $100,000
• Compass Concierge
• Flat $1,774/month commission was built into the rates – CBIZ will receive the 2% Blue Cross override
commissions – this will offset the consulting fee paid by US Engineering
 Contributions –
• Employee contributions remained constant
• HSA and Wellness Dollars remained the same as well
Cigna 2015 Renewal
 Loss Ratio
• Through may 2014- 88.33% 9target 84.15%); 9 claimants >$25k
• Loss Ratio less claims over $100k pooling ($133,448.13) 79.7%
• Prior through April 2013- 68% Cigna (target %83.0%) – Loss Ratio less claims over $75k pooling
($293,066.74) 50%
 Cigna Renewal:
• Initial 2015 proposed renewal calculation increase of 28.9%
• Final 13.36%
 Marketing Results:
• Competitive Plan Options
o Blue Cross Cost Plus (1.9% at expected; 20.9% at max)
o UHC Fully Insured (blend d11% over current)
 Final Renewal Decisions:
• Remained with Cinga at the 13.36%
• $10,000 Wellness Fund included ny Cigna
• Plan Design
o Compliance – All Copays towards Out of Pocket maximums
o Increased rehab benefit from 20 to 60 visits per cal. Yr
• Contributions
o Continued defined contribution based on QHDHP (reduced contribution to family tiers slightly)
o HSA contribution reduced from ($750/$1000/$1500) to ($500/$750/$1250)
• E stimated USE increase of $111k with dual option and defined contribution (subject to tier changes/additions)
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