5.3 ERMUSR 10-13-2020 - Laserfiche WebLink

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current plan. Changing from 75%/25% to 90%/10% allowed the premium to change from $704 to $282, however at an annualcostincrease to the employer of $146,000. After conversations with our broker werequested quotes from the Small Group Market(SGM). With the SGM there were significant reduction in costs. These cost savings would allow us to lower the premiums however, it cannot be offered in addition to the plan we already have - it would have to be a new plan that everyone changes to. There are multiple providers offering different networks, different prescription drug coverage and pharmacy providers, and different deductible options. Since everyone would have to switch plans, it involved careful consideration as to what we might be able to offer. There is a Blue Cross Blue Shield SGM plan that has the same network of providers as our current plan, which is probably one of the biggest concerns changing plans would bring. While this is not the plan with the greatest amount of savings, there are still considerable savings, over $200,000. The deductible amounts are $2,500 single and $5,000 family, and monthly family premiums would be $504 with the 75%/25% share. With over $200,000 in savings, we can adjust the share to 85%/15% and bring the family premium down to $302 and still save $135,000. Please see attachment “Premium Share Options.” As stated before, all employees would need to change to the small group plan because we would not be able to offer it in addition to our current plan, it would be the only plan. While all employees would likely welcome a reduction in premium costs, not all are able to absorb an increased deductible as easily. Based on the remaining dollar amount the employees need to contribute to fully fund the deductible now($750 for single and $815 for family), our current percentage funding to the deductible is 70% single and 83.7% family. A series of options for additional funding has been determined, ranging from 75% up to 100% for both single and family, and there are still savings realized. Please see attachment “HSA Contribution and Savings Options.” A comparison of our current BCBS plan and the SGM BCBS plan is attached. The differences are the increasein the deductible, the pharmacies available, the Out of Network costs (pretty significant but can be controlled by the participant staying in network), bariatric surgery and infertility treatment not covered, no Omada program for diabetes, no Smart Shopper (participants could receive $20 to $300 for “shopping” a procedure or x-ray and using certain providers for plan savings), and no Wellness program dollars (however this could be funded internally.) Please see attachment “Plan Comparisons.” rth noting is the SGM does not rate based upon experience, but upon the age of your Wo participants, and is called “age banding.” Plan costs increase or decrease based on the age of your participants. The age banded costs are determined statewide and not specific to any particular employer, so there will not be huge annual increases to the age bands from year to year. With the SGM there is considerable savings and a great opportunity to offer a more affordable plan to all of our staff, with a lower monthly premium and a higher funding of the deductible. ______________________________________________________________________________ Page 2 of 3 66