Joint Labor-Management Benefits Committee (JLMBC) · 4/4/2019 · Subject: 2019 Open Enrollment Data Review. RECOMMENDATION That the JLMBC receive and file staff report regarding

JLMBC MEMBERS Employee Organizations David Sanders, Chairperson Paul Bechely Chris Hannan Steve Koffroth William Violante Management Wendy G. Macy, Vice-Chairperson Neil Guglielmo Rich Llewellyn Tony Royster Matthew Rudnick

JOINT LABOR-MANAGEMENT BENEFITS COMMITTEE www.keepingLAwell.com

Joint Labor-Management Benefits Committee (JLMBC)

COMMITTEE REPORT 19-13

Date: April 4, 2019 To: JLMBC From: Staff Subject: 2019 Open Enrollment Data Review RECOMMENDATION That the JLMBC receive and file staff report regarding results of the LAwell Civilian Benefits Program (LAwell Program) Open Enrollment for Plan Year 2019. DISCUSSION The 2019 Open Enrollment debrief report (Attachment A) provided by the City’s LAwell Program benefits Third-Party Administrator (TPA), Mercer provides a detailed summary of the results of the LAwell Program Open Enrollment for Plan Year 2019. This staff report provides highlights of the 2019 Open Enrollment communications campaign and reviews key data and statistical information in the TPA debrief report including enrollment election trends, Anthem Blue Cross (Anthem) and Kaiser Permanente (Kaiser) enrollment, LAwell Plan group enrollment, health plan enrollment by Memorandum of Understanding (MOU), and optional benefits election results. A. 2019 Open Enrollment Communications Campaign A summary of the different elements of the Open Enrollment communications campaign starting in Plan Year 2017 through Plan Year 2019 is provided below.

Plan Year Open Enrollment Communications Campaign Elements 2017 • Open Enrollment materials focused on communicating major changes:

- Replacement of Blue Shield by Anthem - Introduction of new regional HMO health plan option, Vivity - Introduction of new stand-alone vision plan provided by EyeMed - Enhancements to several core dental and vision benefits - Introduction of new name and brand, LAwell to replace “my Flex Benefits”

2018 • Open Enrollment materials focused on a “back to basics” approach to provide general level of information about benefits

• Communication materials were streamlined and content simplified to assist members in more easily navigating through the different topics and benefits options available to them

• Doubled the number of Citywide emails on various Open Enrollment activities

2

2019 • Continued the “back to basics” communications campaign • Significantly expanded outreach efforts by:

- Providing a departmental human resources liaison debrief/webinar for communicating Open Enrollment activities

- Increasing the number of lunchtime webinars/seminars offered including two evening sessions and providing these sessions as a joint webinar/seminar with a repeat session immediately following the first session to accommodate varying employee lunch periods

- Providing on-site consultation services from Benefits Division staff and health plan member advocates at various City locations

While the communication campaign components did not substantially change from Plan Year 2018, staff increased the frequency of its outreach efforts. However, despite these efforts, attendance at the lunchtime webinars/seminars decreased about 44% from the prior year. A decrease in attendance from the prior year could be attributed to a number of factors, including increased employee awareness of their benefits options, employee payroll contributions remaining relatively the same from the prior year, the absence of any major benefit changes in Plan Year 2019, and the general reduction of healthcare-focused discussions through mainstream media or on the political stage. Additional detail on these communication efforts and the results of the 2018 Open Enrollment implementation for Plan Year 2019 were provided to the Committee at its August 2, 2018 and December 6, 2018 meetings, respectively. B. Open Enrollment Election Trends During each Open Enrollment period, employees are only required to enroll online through the TPA member self-service website or by calling the Benefits Service Center if they want to make benefit changes or contribute to a healthcare and/or dependent care flexible spending account (i.e. active enrollment). They are otherwise not required to take action to continue existing benefit elections (also referred to as “passive enrollment”). Overall, the percentage of active versus passive enrollment in 2019 was about 1% lower than in 2018. A total of 6,760 employees or 25.5% of employees made active benefit elections/changes for Plan Year 2019 compared to 6,936 employees or 26.5% of employees in Plan Year 2018. It is important to note that the active enrollment percentage excludes employees re-enrolling in the tax-advantaged spending accounts. C. Anthem and Kaiser Enrollment One of the major changes in Plan Year 2017 was the replacement of health plan carrier, Blue Shield by Anthem and the introduction of a new regional HMO health plan option, Vivity. Initial enrollment in the Vivity HMO plan in 2017 (year 1) was 750 employees or 3% of total LAwell membership. Enrollment more than doubled from 750 in Year 1 to 1,520 in Year 3 to represent 5.8% of total LAwell membership. Staff completed an initial analysis of the employees enrolled in the Vivity plan in 2019 and determined that a majority of these employees were previously enrolled in the Anthem Narrow Network HMO. Health plan enrollment across all plans based on the Mercer TPA debrief report is provided below.

3

Health Plan Number of 2019 Members

Membership as % of Total

Percent Change from 2018

Anthem Narrow Network HMO 5,552 21.0% -12.8% Anthem Full Network HMO 102 0.4% 2% Anthem Vivity HMO 1,520 5.8% 17.7% Anthem PPO 2,483 9.4% -1.6% Kaiser HMO 15,436 58.1% 6.8% Cash-in-Lieu 1,391 5.3% -0.2% Total 26,484 100.0% -

Regarding the migration of members among plans, there was a net gain of 220 members or 0.89% moving from Anthem to Kaiser in Plan Year 2019 compared to 399 members or 1.6% in Plan Year 2018. Overall, total enrollment in all Anthem plans in Plan Year 2019 is 36.6% compared to 39.4% in Plan Year 2018. Total enrollment in Kaiser in Plan Year 2019 is 58.1% compared to 55.3% in Plan Year 2018. It should be noted that all enrollment data comparisons of 2019 versus 2018 data include both Open Enrollment changes in October 2018 as well as new hire elections which occurred throughout 2018. D. LAwell Plan Group Enrollment In Plan Year 2018, the LAwell civilian population was 26,131 as of January 30, 2018. In Plan Year 2019, the LAwell civilian population continues to grow comprising a total of 26,484 employees as of February 11, 2019. This represents an increase of 1.35% compared to Plan Year 2018. Enrollment in the two LAwell Plan groups is as follows:

• LAwell Plan – 18,429 (70%): includes LAwell eligible employees in MOUs 02,03,04, 06, 07, 08, 09, 10, 11, 12, 13, 14, 15, 16, 17, 18, 34, 36, 37

• LAwell Pay Plan – 8,055 (30%): includes LAwell eligible employees in MOUs 00, 01, 05, 19, 20,21, 26, 27, 28, 29, 30, 31,32, 38, 39, 40, 61, 63

E. Health Plan Enrollment by Memorandum of Understanding (MOU) Plan Year 2019 represents the third year of a three-year contract with health plan carriers, Anthem and Kaiser. Health plan enrollment (excluding Cash-in-Lieu) by MOU compared to Plan Year 2018 based on the Mercer TPA debrief report is provided below. Enrollment in the Anthem Vivity HMO plan showed the most significant increase amongst all of the plans. American Federation of State, County, & Municipal Employees (AFSCME) – MOUs 03, 06, 07, 10, 11, 16, 37




Anthem Narrow Network HMO 1,344 22.3% -15.4% Anthem Full Network HMO 17 0.2% 0.0% Anthem Vivity HMO 344 5.7% 14.3% Anthem PPO 441 7.3% -0.5%

4

Kaiser HMO 3,892 64.5% 10.0% Total 6,038 100.0% -

Engineers & Architects Association (EAA) – MOUs 01, 19, 20, 21




Anthem Narrow Network HMO 1,033 23.2% -11.2% Anthem Full Network HMO 18 0.4% 20.0% Anthem Vivity HMO 368 8.3% 19.1% Anthem PPO 557 12.5% -2.5% Kaiser HMO 2,474 55.6% 3.8% Total 4,450 100.0% -

LA County Building & Construction Trades Council – MOUs 02, 13




Anthem Narrow Network HMO 294 27.6% -11.4% Anthem Full Network HMO 3 0.3% 200% Anthem Vivity HMO 59 5.5% 22.9% Anthem PPO 88 8.3% -10.2% Kaiser HMO 622 58.3% 6.5% Total 1,066 100.0% -

Laborer’s International Union of North America (LIUNA) – MOU 12




Anthem Narrow Network HMO 202 24.9% -1.9% Anthem Full Network HMO 1 0.1% -50.0% Anthem Vivity HMO 30 3.7% 36.4% Anthem PPO 45 5.6% 2.3% Kaiser HMO 532 65.7% 3.5% Total 810 100.0% -

Service Employees International Union (SEIU) – MOUs 04, 08, 14, 15, 17, 18




Anthem Narrow Network HMO 1,830 21.0% -13.4% Anthem Full Network HMO 19 0.2% -9.5% Anthem Vivity HMO 415 4.8% 17.6% Anthem PPO 612 7.0% -1.3% Kaiser HMO 5,830 67.0% 7.5%

5

Total 8,706 100.0% - ALL OTHER MOUs – MOUs 00, 05, 09, 26, 27, 28, 29, 30, 31, 32, 34, 36, 38, 39, 40, 61, 63




Anthem Narrow Network HMO 849 21.1% -11.9% Anthem Full Network HMO 44 1.1% 0.0% Anthem Vivity HMO 304 7.6% 17.8% Anthem PPO 740 18.4% -1.1% Kaiser HMO 2,086 51.8% 3.7% Total 4,023 100.0% -

F. Optional Benefits Election Results The percentage of employees electing to purchase optional benefits such as supplemental life, spouse life, child life, disability, and accidental death and dismemberment insurance in Plan Year 2019 remained largely the same as in Plan Year 2018. The percentage of civilian employees electing to participate in a healthcare and/or dependent care flexible spending account in Plan Year 2019 also remained largely the same as in Plan Year 2018. CONCLUSION

Plan Year 2019 enrollment trends showed a steady increase in the total LAwell civilian population and migration of members to the Anthem Vivity HMO plan. Additionally, staff significantly increased the number of outreach events during the 2019 Open enrollment period. While attendance at these events was lower than in the prior year, staff received positive feedback from employees who attended the webinars/seminars that they were very informative in helping them to understand not only the benefits offered but also how to utilize those benefits effectively. In preparation for next year’s Open Enrollment, staff has begun discussions with new benefits TPA, Morneau Shepell on developing a communications plan to promote the enhancements and features of the new member portal such as the ability for members to opt out of paper communications, upload supporting documentation (e.g birth and marriage certificates), and download confirmation statements immediately upon completion of an enrollment event. Staff anticipates that these value-added improvements will increase overall member engagement and utilization of the member portal. Submitted by: ___________________________________ Jenny M. Yau Approved by: ___________________________________ Steven Montagna

H E A L T H W E A L T H C A R E E R

C I T Y O F L O S A N G E L E S 2 0 1 9 O P E N E N R O L L M E N T D E B R I E F

FEBRUARY 11, 2019

Mercer Chuck Hartwig – Client Relationship Manager Gina Diamond – Administrative Relationship Manager Gary Bozeman – H&B Client Service Director Sandra Stemberg – Client Service Manager Candace Owens – Client Service Team Lead

ATTACHMENT A

© MERCER 2019 1

• Updated 2019 premium rates.

• Change in Employee Assistance Program service provider from MHN to Optum.

• Updated Evidence of Insurability (EOI) reporting.

• Updated maximum benefit amount for basic disability benefit to $3,268.

• Increased Health Care Flexible Spending Account (FSA) maximum goal amount to $2,650.

• Updated dual year processing in the administration system.

• Provided additional reports during the Open Enrollment (OE) correction window to collect OE dependent verification documentation.

• Adjusted timing of the OE payroll refresh file to ensure end of year changes were addressed after the initial OE payroll file was transmitted.

2 0 1 9 E N R O L L M E N T S U M M A R Y S I G N I F I C A N T A C T I V I T I E S

© MERCER 2019 2

2 0 1 9 E N R O L L M E N T M E T H O D R E S U L T S A C T I V E V S . D E F A U L T C H A N G E S E X C L U D E S O E C O R R E C T I O N W I N D O W A N D C H A N G E S T O H E A L T H C A R E A N D D E P E N D E N T C A R E F L E X I B L E S P E N D I N G A C C O U N T S *

2019

25.5%

74.5%

Actively Enrolled (6,760)*Defaulted (19,733)

2019 – 26,493

Note, effective 2018 OE debrief reporting, values may be reflected with an additional single decimal place, rather than rounded to a whole number.

2018

26.5%

73.5%

Actively Enrolled (6,936)*Defaulted (19,201)

2018 – 26,137

© MERCER 2019 3

2 0 1 9 E N R O L L M E N T I N F O R M A T I O N E M P L O Y E E S T A T U S B R E A K D O W N – C O M P A R I S O N 2 0 1 8 V S . 2 0 1 9

88.8%

10.0% 0.6% 0.4% 0.2%

Regular Full Time (23,521) Regular Half Time (2,682)Direct Bill Full Time (159) Direct Bill Half Time (92)Direct Bill on Leave (39)

2019 – 26,493

89.0%

9.0% 0.8% 1.0% 0.2%

Regular Full Time (23,267) Regular Half Time (2,355)Direct Bill Full Time (207) Direct Bill Half Time (266)Direct Bill on Leave (42)

2018 – 26,137

© MERCER 2019 4

2 0 1 9 E N R O L L M E N T I N F O R M A T I O N E M P L O Y E E S T A T U S B R E A K D O W N – C O M P A R I S O N L A W E L L V S . L A W E L L P A Y G R O U P S

84.6%

14.2%

0.6% 0.5% 0.1%

Regular Full Time (15,590)Regular Half Time (2,616)Direct Bill Full Time (113)Direct Bill Half Time (91)Direct Bill on Leave (25)

LAwell – 18,435

98.4%

0.8% 0.6% 0.0% 0.2%

Regular Full Time (7,931)Regular Half Time (66)Direct Bill Full Time (46)Direct Bill Half Time (1)Direct Bill on Leave (14)

LAwell Pay- 8,058 MOUs (00, 01, 05, 19, 20, 21, 26, 27, 28, 29, 30,

31, 32, 38, 39, 40, 61, 63) MOUs (02, 03, 04, 06, 07, 08, 09, 10, 11, 12, 13, 14, 15, 16,

17, 18, 34, 36, 37)

© MERCER 2019 5

2 0 1 9 E N R O L L M E N T I N F O R M A T I O N G E N D E R B R E A K D O W N

2019

60%

40%

Male (15,810)

Female (10,683)

2019 – 26,493

2018

60%

40%

Male (15,655)

Female (10,482)

2018 – 26,137

© MERCER 2019 6

2 0 1 9 E N R O L L M E N T E L E C T I O N S M E D I C A L P L A N B R E A K D O W N – C O M P A R I S O N O F 2 0 1 8 V S . 2 0 1 9

5.3%

21.0%

0.4%

9.4% 5.8%

58.1%

Cash in Lieu (1,391)Anthem Narrow (5,552)Anthem Full Network (102)Anthem PPO (2,483)Anthem Vivity (1,520)Kaiser (15,436)

2019– 26,484*

Note: *Graphs do not account for employees in Direct Bill Partial/Full Termination status.

5.3%

24.4%

0.4%

9.7% 4.9%

55.3%

Cash in Lieu (1,394)Anthem Narrow (6,367)Anthem Full Network (100)Anthem PPO (2,524)Anthem Vivity (1,291)Kaiser (14,455)

2018 – 26,131*

© MERCER 2019 7

2 0 1 9 E N R O L L M E N T E L E C T I O N S M E D I C A L P L A N B R E A K D O W N – C O M P A R I S O N O F L A W E L L V S . L A W E L L P A Y G R O U P S

3.7%

21.4%

0.3%

7.2% 5.1%

62.3%

Cash in Lieu (679)Anthem Narrow (3,942)Anthem Full Network (51)Anthem PPO (1,333)Anthem Vivity (944)Kaiser HMO (11,480)

LAwell – 18,429*

8.8%

20.0%

0.6%

14.3%

7.2%

49.1%

Cash in Lieu (712)Anthem Narrow (1,610)Anthem Full Network (51)Anthem PPO (1,150)Anthem Vivity (576)Kaiser HMO (3,956)

LAwell Pay – 8,055*


MOUs (02, 03, 04, 06, 07, 08, 09, 10, 11, 12, 13, 14, 15, 16, 17, 18, 34, 36, 37)

MOUs (00, 01, 05, 19, 20, 21, 26, 27, 28, 29, 30, 31, 32, 38, 39, 40, 61, 63)

© MERCER 2019 8

2 0 1 9 E N R O L L M E N T I N F O R M A T I O N M E D I C A L P L A N B Y Y E A R

Cash In Lieu Anthem Narrow Anthem Full Anthem PPO Anthem Vivity Kaiser HMO

6%

26%

0%

10%

3%

55%

5%

25%

0%

10%

5%

55%

5%

21%

0%

10%

6%

58%

201720182019

Note, effective 2018 OE debrief reporting, values may be reflected with an additional single decimal place, rather than rounded to a whole number.

© MERCER 2019 9

2 0 1 9 E N R O L L M E N T I N F O R M A T I O N M E D I C A L P L A N B Y T I E R T Y P E – C I V I L I A N E M P L O Y E E S

42.1%

10.5%

13.8%

28.3%

5.3%

EE Only (11,164) EE+Child (2,771)EE+Spouse (3,647) EE+Family (7,511)Cash in Lieu (1,391)

2019 – 26,484*


40.7%

10.8%

13.7%

29.5%

5.3%

EE Only (10,632) EE+Child (2,817)EE+Spouse (3,559) EE+Family (7,729)Cash in Lieu (1,394)

2018 – 26,131*

© MERCER 2019 10

2 0 1 9 E N R O L L M E N T I N F O R M A T I O N M E D I C A L P L A N B Y T I E R T Y P E – C O M P A R I S O N L A W E L L V S . L A W E L L P A Y G R O U P S

43.2%

10.9%

13.5%

28.7%

3.7%

EE Only (7,970)EE+Child (2,010)EE+Spouse (2,491)EE+Family (5,279)Cash in Lieu (679)

LAwell – 18,429*

39.6%

9.5%

14.4%

27.7%

8.8%

EE Only (3,194)EE+Child (761)EE+Spouse (1,156)EE+Family (2,232)Cash in Lieu (712)

LAwell Pay – 8,055*


MOUs (02, 03, 04, 06, 07, 08, 09, 10, 11, 12, 13, 14, 15, 16, 17, 18, 34, 36, 37)

MOUs (00, 01, 05, 19, 20, 21, 26, 27, 28, 29, 30, 31, 32, 38, 39, 40, 61, 63)

© MERCER 2019 11

2 0 1 9 E N R O L L M E N T I N F O R M A T I O N M E D I C A L – A N T H E M T O K A I S E R M I G R A T I O N

38.5%

61.5%

Anthem (9,657)Kaiser HMO (15,436)

2019 Anthem & Kaiser Enrollment

1.5%

0.6%

Anthem to Kaiser (383)Kaiser to Anthem (163)

2019 Anthem & Kaiser Migration

Net gain of 220 members moving from Anthem to Kaiser for the 2019 plan year change (.89% net gain).

© MERCER 2019 12

2 0 1 9 E N R O L L M E N T I N F O R M A T I O N M E D I C A L P L A N A N T H E M N A R R O W E N R O L L M E N T – B Y M . O . U . M.O.U Bargaining Unit Title Total Number of Employees Enrolled

0 Non-Represented 149 1 Administrative 451 2 Building Trades 242 3 Clerical 982 4 Equip. Operation & Labor 724 5 Inspectors 204 6 Librarians 49 7 Recreation Assistants 186 8 Professional Engineering & Scientific 331 9 Plant Equip. Operators & Repair 70

10 Professional Medical 12 11 Recreational 77 12 Supervisory Blue Collar 202 13 Supervisory Building Trades 52 14 Service & Craft 213 15 Service Employees 116 16 Supervisory Librarians 13 17 Supervisory Prof. Engineering & Scientific 142 18 Safety / Security 304 19 Supervisory Technical 63 20 Supervisory Administrative 297 21 Technical 222 26 Port Pilots 4 27 L. A. Port Police Command Officers 1 28 L. A. General Services Police Officers 2 29 Deputy City Attorneys 57 30 L. A. Airport Peace Officers 97 31 Confidential Attorneys 6 32 Management Attorneys Unit 2 34 Crossing Guards 24 36 Management Employees 178 37 Executive Administrative Assistants 25 38 L. A. Port Police Assoc. 23 39 L. A. Airport Supervisory Peace Officers 16 40 Management Peace Officers (Airport Police Command) 0 61 Senior Administrative and Administrative Analysts 12 63 Personnel Director 4

Grand Total 5,552

© MERCER 2019 13

2 0 1 9 E N R O L L M E N T I N F O R M A T I O N M E D I C A L P L A N A N T H E M P P O E N R O L L M E N T – B Y M . O . U .

M.O.U. Bargaining Unit Title Total Number of Employees Enrolled 0 Non-Represented 164 1 Administrative 256 2 Building Trades 78 3 Clerical 297 4 Equip. Operation & Labor 121 5 Inspectors 105 6 Librarians 56 7 Recreation Assistants 6 8 Professional Engineering & Scientific 218 9 Plant Equip. Operators & Repair 20

10 Professional Medical 25 11 Recreational 33 12 Supervisory Blue Collar 45 13 Supervisory Building Trades 10 14 Service & Craft 64 15 Service Employees 22 16 Supervisory Librarians 15 17 Supervisory Prof. Engineering & Scientific 87 18 Safety / Security 100 19 Supervisory Technical 32 20 Supervisory Administrative 145 21 Technical 124 26 Port Pilots 5 27 L. A. Port Police Command Officers 5 28 L. A. General Services Police Officers 1 29 Deputy City Attorneys 199 30 L. A. Airport Peace Officers 52 31 Confidential Attorneys 16 32 Management Attorneys 9 34 Crossing Guards 1 36 Management Employees 126 37 Executive Administrative Assistants 9 38 L. A. Port Police Assoc. 18 39 L. A. Airport Supervisory Peace Officers 13 40 Management Peace Officers (Airport Police Command) 0 61 Senior Administrative and Administrative Analysts 4 63 Personnel Director 2

Grand Total 2,483

© MERCER 2019 14

2 0 1 9 E N R O L L M E N T I N F O R M A T I O N M E D I C A L P L A N A N T H E M F U L L N E T W O R K E N R O L L M E N T – B Y M . O . U . M.O.U. Bargaining Unit Title Total Number of Employees Enrolled



Grand Total 102

© MERCER 2019 15

2 0 1 9 E N R O L L M E N T I N F O R M A T I O N M E D I C A L P L A N A N T H E M V I V I T Y H M O E N R O L L M E N T – B Y M . O . U . M.O.U. Bargaining Unit Title Total Number of Employees Enrolled



Grand Total 1,520

© MERCER 2019 16

2 0 1 9 E N R O L L M E N T I N F O R M A T I O N M E D I C A L P L A N K A I S E R E N R O L L M E N T – B Y M . O . U .

M.O.U. Bargaining Unit Title Total Number of Employees Enrolled 0 Non-Represented 482 1 Administrative 1,101 2 Building Trades 549 3 Clerical 2,893 4 Equip. Operation & Labor 2,557 5 Inspectors 461 6 Librarians 152 7 Recreation Assistants 523 8 Professional Engineering & Scientific 688 9 Plant Equip. Operators & Repair 179

10 Professional Medical 33 11 Recreational 177 12 Supervisory Blue Collar 532 13 Supervisory Building Trades 73 14 Service & Craft 554 15 Service Employees 712 16 Supervisory Librarians 62 17 Supervisory Prof. Engineering & Scientific 187 18 Safety / Security 1,132 19 Supervisory Technical 138 20 Supervisory Administrative 624 21 Technical 611 26 Port Pilots 4 27 L. A. Port Police Command Officers 5 28 L. A. General Services Police Officers 17 29 Deputy City Attorneys 129 30 L. A. Airport Peace Officers 229 31 Confidential Attorneys 8 32 Management Attorneys 3 34 Crossing Guards 130 36 Management Employees 295 37 Executive Administrative Assistants 52 38 L. A. Port Police Assoc. 66 39 L. A. Airport Supervisory Peace Officers 40 40 Management Peace Officers (Airport Police Command) 6 61 Senior Administrative and Administrative Analysts 23 63 Personnel Director 9

Grand Total 15,436

© MERCER 2019 17

2 0 1 9 E N R O L L M E N T I N F O R M A T I O N D E P E N D E N T S B Y T Y P E – C O M P A R I S O N O F 2 0 1 8 V S . 2 0 1 9

3.1%

32.9%

0.4%

63.3%

0.3%

Domestic Partner (1,036) Spouse (10,950)

Grandchild (117) Child (21,045)

Disabled Dependent (87)

2018 – 33,235

3.2%

33.2%

0.4%

62.9%

0.3%

Domestic Partner (1,044) Spouse (10,729)

Grandchild (123) Child (20,283)

Disabled Dependent (93)

2019 – 32,272

© MERCER 2019 18

2 0 1 9 E N R O L L M E N T I N F O R M A T I O N D E P E N D E N T E N R O L L M E N T C O M P A R I S O N

3.01% 2.52%

3.48%

2019 Dependents Added (970)2018 Dependents Added (836)2017 Dependents Added (1,159)

• Dependents added for 2019, according to dependent type: – Child - 549 – Grandchild - 9 – Domestic Partner - 84 – Spouse - 327 – Disabled Dependent - 1

© MERCER 2019 19

• Total number of Civilian employees electing Health Care FSA coverage: 2,135

• Percent of Civilian Health Care FSA employee participation: 8.06%

• Participation change as compared to 2018: -.09%

• Average Health Care FSA contribution amount per Civilian enrollee: $1,470 • Note: *Maximum annual Health Care FSA election in 2019 is $2,650.00.

How does this compare to other Mercer Benefits Administration clients?

• Average participation percentage for Health Care FSA across Mercer client base: 8%

• Average Health Care FSA contribution amount per enrollee across Mercer client base: $1,773

309 464

614 742

431 300

605

799

0100200300400500600700800900

<$500 $501 - $999 $1,000 - $1,999 $2,000 - $2,999

Health Care FSA Election Amount Trends*

20182019

2 0 1 9 E N R O L L M E N T E L E C T I O N S : H E A L T H C A R E F S A T O T A L E N R O L L E D E L E C T I O N A M O U N T S - C I V I L I A N

© MERCER 2019 20

• Total number of SWORN employees electing Health Care FSA coverage: 479

• Percent of SWORN Health Care FSA employee participation: 4.16%


• Average Health Care FSA contribution amount per Sworn enrollee: $1,947 • Note: *Maximum annual Health Care FSA election in 2019 is $2,650.00.


• Average participation percentage for Health Care FSA across Mercer client base: 8%

• Average Health Care FSA contribution amount per enrollee across Mercer client base: $1,773

9 57

166

304

26 45

122

286

050

100150200250300350

<$500 $501 - $999 $1,000 - $1,999 $2,000 - $2,999

Health Care FSA Election Amount Trends*

20182019

2 0 1 9 E N R O L L M E N T E L E C T I O N S : H E A L T H C A R E F S A T O T A L E N R O L L E D E L E C T I O N A M O U N T S - S W O R N

© MERCER 2019 21

• Total number of Civilian employees electing Dependent Care FSA coverage: 523

• Percent of Civilian Dependent Care FSA employee participation: 1.97%


• Average Dependent Care FSA contribution amount per Civilian enrollee: $3,878 • Note: *Maximum annual Dependent Care FSA election in 2019 is $4,992.00.


• Average participation percentage for Dependent Care FSA across Mercer client base: 2%

• Average Dependent Care FSA contribution amount per enrollee across Mercer client base: $4,472

0 26 60 69 46

345

0 29 47 64 56

327

050

100150200250300350400

<$500 $501 - $999 $1,000 - $1,999 $2,000 - $2,999 $3,000 - $3,999 $4,000 - $5,000

Dependent Care FSA Election Amount Trends*

20182019

2 0 1 9 E N R O L L M E N T E L E C T I O N S : D E P E N D E N T C A R E F S A T O T A L E N R O L L E D E L E C T I O N A M O U N T S - C I V I L I A N

© MERCER 2019 22

• Total number of SWORN employees electing Dependent Care FSA coverage: 179

• Percent of SWORN Dependent Care FSA employee participation: 1.55%


• Average Dependent Care FSA contribution amount per Sworn enrollee: $4,232 • Note: *Maximum annual Dependent Care FSA election in 2019 is $4,992.00


• Average participation percentage for Dependent Care FSA across Mercer client base: 2%

• Average Dependent Care FSA contribution amount per enrollee across Mercer client base: $4,472

0 5 14 19 19

137

0 8 7 15 14

135

020406080

100120140160

<$500 $501 - $999 $1,000 - $1,999 $2,000 - $2,999 $3,000 - $3,999 $4,000 - $5,000

Dependent Care FSA Election Amount Trends*

20182019

2 0 1 9 E N R O L L M E N T E L E C T I O N S : D E P E N D E N T C A R E F S A T O T A L E N R O L L E D E L E C T I O N A M O U N T S - S W O R N

© MERCER 2019 23

2 0 1 9 E N R O L L M E N T I N F O R M A T I O N D E N T A L P L A N B Y Y E A R

Delta PMI Delta PPO Delta Preventative

31%

67%

2%

32%

66%

2%

31%

67%

2%

201720182019

© MERCER 2019 24

2 0 1 9 E N R O L L M E N T I N F O R M A T I O N D E N T A L P L A N B Y T I E R T Y P E – C I V I L I A N E M P L O Y E E S

49.0%

12.0% 13.7%

25.3%

EE Only (12,963) EE+Child (3,170)EE+Spouse (3,616) EE+Family (6,727)

2019 – 26,476*

Note: *Graphs do not account for employees in Direct Bill Partial/ Full Termination status.

47.6%

12.3% 13.7%

26.4%

EE Only (12,447) EE+Child (3,212)EE+Spouse (3,571) EE+Family (6,888)

2018 – 26,118*

© MERCER 2019 25

2 0 1 9 E N R O L L M E N T I N F O R M A T I O N V I S I O N P L A N

Vison-Enrolled

2017 (25,344)2018 (25,821)2019 (26,085)

© MERCER 2019 26

2 0 1 9 E N R O L L M E N T I N F O R M A T I O N V I S I O N P L A N B Y T I E R T Y P E – C I V I L I A N E M P L O Y E E S

46.6%

10.6% 14.0%

28.8%

EE Only (12,168) EE+Child (2,762)

EE+Spouse (3,646) EE+Family (7,509)

2019 – 26,085

45.4%

10.9% 13.8%

29.9%

EE Only (11,729) EE+Child (2,803)

EE+Spouse (3,557) EE+Family (7,732)

2018 – 25,821

© MERCER 2019 27

2 0 1 9 E N R O L L M E N T I N F O R M A T I O N S U P P L E M E N T A L L I F E B Y O P T I O N

38.1%

9.7% 9.6%

28.6%

2.5%

11.5%

No Additional Coverage (10,082)1xPay (2,564)2xPay (2,540)3xPay (7,579)4xPay (671)5xPay (3,057)

2019 – 26,493

37.0%

9.9% 9.7%

28.5%

2.8%

12.1%

No Additional Coverage (9,662)1xPay (2,590)2xPay (2,531)3xPay (7,453)4xPay (735)5xPay (3,166)

2018 – 26,137

© MERCER 2019 28

2 0 1 9 E N R O L L M E N T I N F O R M A T I O N S U P P L E M E N T A L A D & D B Y O P T I O N

41.6%

6.1% 6.3%

3.5% 4.1% 3.2% 3.5%

1.2% 1.7% 0.5%

28.3%

0.0%

No Coverage (11,018) 50K (1,622)100K (1,673) 150K (933)200K (1,089) 250K (837)300K (941) 350K (305)400K (437) 450K (134)500K (7,490) PORT (14)

2019 – 26,493

40.4%

6.3% 6.7%

3.6% 4.4% 3.2% 3.8%

1.2% 1.8% 0.5%

28.1%

0.0%

No Coverage (10,569) 50K (1,647)100K (1,756) 150K (927)200K (1,141) 250K (842)300K (979) 350K (316)400K (466) 450K (135)500K (7,347) PORT (12)

2018 – 26,137

© MERCER 2019 29

2 0 1 9 E N R O L L M E N T I N F O R M A T I O N S P O U S E L I F E

79.9%

3.3%

7.9%

2.0% 0.8% 6.1%

No Coverage (21,175) 10K (858)25K (2,099) 50K (542)75K (204) 100K (1,615)

2019 – 26,493

79.2%

3.3%

8.6%

2.1% 0.7% 6.1%

No Coverage (20,690) 10K (868)25K (2,253) 50K (546)75K (178) 100K (1,602)

2018 – 26,137

© MERCER 2019 30

2 0 1 9 E N R O L L M E N T I N F O R M A T I O N C H I L D L I F E

73.5%

26.5%

No Coverage (19,464) 5K (7,029)

2019 – 26,493

72.8%

27.2%

No Coverage (19,023) 5K (7,114)

2018 – 26,137

© MERCER 2019 31

2 0 1 9 E N R O L L M E N T I N F O R M A T I O N B A S I C A N D S U P P L E M E N T A L D I S A B I L I T Y

77.4%

22.6%

Basic Disability (20,518) 66 2/3% Buy Up (5,975)

2019 – 26,493

76.6%

23.4%

Basic Disability (20,018) 66 2/3% Buy Up (6,119)

2018 – 26,137

© MERCER 2019 32

2 0 1 9 E N R O L L M E N T E L E C T I O N S E N R O L L M E N T S B Y D A Y U N I Q U E P A R T I C I P A N T E N R O L L M E N T S , P E R D A Y

0

100

200

300

400

500

600

700

800

900

273

157

110 119 107

47 45 74

142 117 114

95 61 57

151 141 107 118 127

59 80

233 235

158

212 174

81

157

436

852 826

WebService Center

© MERCER 2019 33

2 0 1 9 E N R O L L M E N T E L E C T I O N S W E B V I S I T S B Y D A Y

0

500

1000

1500

2000

2500

3000

897

581 440 420 360

104 115

278

553 447

365 317

123 133

583 483

401 432 431

127 173

674 714

514

681 581

160

353

1,325

2,425

2,729

© MERCER 2019 34

2 0 1 9 E N R O L L M E N T E L E C T I O N S S E R V I C E C E N T E R M E T R I C S

Statistic Week 1 Week 2 Week 3 Week 4 Week 5 Total

Total Calls Received 428 379 489 697 1,385 3,378

Total Calls Answered 427 379 482 693 1,242 3,223

Call Abandonment Rate 0.23% 0% 1.43% 0.57% 10.32% 4.59%

Total Chats Received 9 6 7 12 18 52

Total Chats Answered 9 6 7 12 18 52

Chat Abandonment Rate

0% 0% 0% 0% 0% 0%

Average Call Handle Time

15:27 14:09 13:28 12:36 14:16 13:56

• Peak Volume Day: October 31st (597 calls/chats, 2,729 web visits, 1,119 overall enrollments completed) • Week 1, OE started on a Monday. Week 5, OE ended on a Wednesday. • No web outages during OE Period.

© MERCER 2019 35

18% 20% 21%

82% 80% 79%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2017 2018 2019

City of LA Enrollments by Method

Call CenterWeb

• To facilitate more engagement with the site, the call center continues to promote self service options via the benefits website during calls and provided employees with directions on how to utilize the site.

• City of LA initiated enrollment reminders to employees.

2 0 1 9 E N R O L L M E N T M E T H O D R E S U L T S C I T Y O F L O S A N G E L E S C O M P A R E D T O M E R C E R O U T S O U R C I N G C L I E N T S

89%

11%

82%

18%

89%

11%

80%

20%

88%

12%

79%

21%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Web (Participant) Service Center

Enrollments by Method in Comparison to Mercer Clients Overall

Mercer OE 2017City OE 2017Mercer OE 2018City OE 2018Mercer OE 2019City OE 2019

© MERCER 2019 36

• Responded to call center trending and escalated requests urgently. Met to discuss concerns on a weekly basis and provided detailed responses to call concern examples.

• Delivered separate refresh file for Open Enrollment (OE) payroll.

• Updated web security methods prior to OE.

• Provided additional reporting to assist City of LA with sending reminder notices regarding dependent verification and supporting documentation.

• Provided Open Enrollment dependent verification reporting starting in mid-October, to facilitate the document collection process.

• Met Open Enrollment go live date.

2 0 1 9 E N R O L L M E N T S U M M A R Y W H A T W E N T W E L L

Documents

Joint Labor-Management Benefits Committee (JLMBC) · 4/4/2019 · Subject: 2019 Open Enrollment Data Review. RECOMMENDATION That the JLMBC receive and file staff report regarding