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2018 Trend Rate Calculation
PPO 500
PPO 1500
HSA 2500
2018 Segal Medical Trend Rate
7.80%
7.80%
7.80%
2018 Segal Rx Trend Rate
10.30%
10.30%
10.30%
Weighted* Medical+Rx Trend
8.30%
8.30%
8.30%
PPO 1000
HSA 3000
HSA 6000
Weighted* Medical+Rx Trend
8.30%
8.30%
8.30%
Plan Design Change Decrement
-7.22%
-9.45%
-4.57%
Subtotal Medical+Rx Trend
1.08%
-1.15%
3.73%
All Plans
Total Weighted Medical+Rx Trend
0.55%
Stop Loss ISL Deductible Optimization
-1.43%
Pure Captive Implementation Decrement
-0.16%
Onsite Clinic Implementation Decrement
-0.34%
Narrow Network Decrement
-1.56%
Optimized Formulary Adjustment
-0.88%
Final Composite Funding Rate Trend Rate
-3.82%
All Plans
Total Weighted Medical+Rx Trend
-3.82%
Contribution Changes
-10.12%
Final Composite Employer Contribution Trend Rate
-13.95%
*
See the next page for how these calculated trend rates are applied to the funding rates and contributions.
It is assumed that 80% of claim dollars are medical claims and the remaining 20% of claim dollars are Rx (Pharmacy)
claims.
The 2018 funding rates must be trended. Below are the trend rates applied to the previous year's funding rates in order to
estimate the future funding rates.
Note that all decrements are calculated in separate actuarial feasibility studies.
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