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Employee Benefit Workshop 2009
• National Trends
• IBBP Information
• Analysis of the Plan
• Wellness
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National Health Care Trends
• Over the past five years, the percentage of U.S population covered by health insurance has been constant – hovering around 84%
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Coverage by Type of Health Insurance
• The most recent data shows nationally, 72% of individuals have a traditional plan design, 20% HMO coverage and 8% HDHP HSA qualified
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Employer Contributions
• Nationally, the average annual employer premium contribution for family health coverage is 73.5%
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Healthcare in Iowa
• The number of Iowans without health insurance is 9.9%, compared to the national average of 15.3%
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Employee Benefit Workshop 2009
• National Trends
• IBBP Information
• Analysis of the Plan
• Wellness
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Iowa Bankers BenefitPlan insures 28,501people for healthcoverage.
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IBBP Trust Reserve August 2009 $18,090,059December 2008 $17,133,978 2008 Actuarial Certification
Amount $8,050,445December 2007 $16,996,278 2007 Actuarial Certification
Amount $6,835,781 December 2006 $12,426,176 2006 Actuarial Certification
Amount $7,419,510December 2005 $5,539,728 2005 Actuarial Certification
Amount $6,809,749December 2004$9,301,531 2004 Actuarial Certification
Amount $$7,589,751December 2003 $9,910,486 2003 Actuarial Certification
Amount $6,038,208 $0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
$20,000,000
Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Aug-09
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2008 Administrative Expense Ratio• 2008 Total Premiums
$86,822,871• Wellmark Administrative Fees -
$4,627,118• Plus IBIS Administrative
Expense -$4,253,371• Other Expense - Audit Expense
-$23,983, Legal Expense - $30,591,Misc $642
• Total Administrative Expense $8,935,705 or
• 10.3% Administrative Expense Ratio
Wellmark Adm Fees
5.41%
2008 claims , 89.7%
IBIS Adm. Expense
4.8% Other Expense
.09%
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Employee Benefit Workshop 2009
• National Trends
• IBBP Information
• Analysis of the Plan
• Wellness
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IBBP Total Claims Paid
$56,138,618
$69,480,205
$78,170,837 $74,228,824
$67,806,081
$75,096,344
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
2003 2004 2005 2006 2007 2008
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Average Cost per Member
• Over the past 12 months, the Plan paid $3,049 per member, increase of 15% over the past 4 years
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May 2008 – April 2009
Total Claims Paid Paid Per MemberPercent of Change
Per Member
Active
Health $62,451,891 $2544 7.8%
Pharmacy $11,976,485 $488 14.2%
Combined $74,428,376 $3,032 8.8%
Retiree
Health $526,355 $6,192 (1.3%)
Pharmacy $141,587 $1,666 31.5%
Combined $667,942 $7,858 4.2%
Combined
Health $62,978,247 $2,557 7.6%
Pharmacy $12,118,097 $492 14.3%
Combined $75,096,344 $3,049 8.7%17
Major Trend Drivers• Health and Pharmacy claims
paid per member increased 9% mainly due to inpatient services
• Provider Savings totaled $44,547,715 or 36% of covered charges
• Members were liable for $12,557,980 or 20% of covered charges, down 1% from the previous year
• Medicare coordination and other COB savings totaled $2,122,639
• 143 members had claims in excess of $50,000 accounting for 22% of claims paid
• One claim hit stop loss-the total dollar amount is in excess of - $1,600,000
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PROVIDER NAME CITY STPROVIDERCHARGES CLAIMS PAID
Children’s Hospital Omaha NE $1,739,886 $1,437,960
St. Mary’s Hospital Rochester MN $1,446,095 $1,276,231
Rochester Methodist Hospital Rochester MN $720,126 $552,472
The Nebraska Medical Center Omaha NE $895,626 $472,732
Mayo Clinic Rochester MN $450,460 $328,175
Nearly 29% of facility claims are paid outside the state of Iowa
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• The Plan paid out over $11 million in prescription drug claims in 2008—a cost increase of more than 11% from the year prior.
• 63.6% of Plan members purchased a generic drug, which is 3.5% less compared to other health plans.
• The three most costly drug classes paid for under the Plan are:
– Therapeutic drugs (prescribed for cancer treatment or organ transplants) (10%)
– Antidepressants (9%)– Anti-cholesterol drugs (8%)
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Drug Claims 2004 to Current Date
Iowa BankersQ1 2009 Wellmark Book of Business
% Generic Prescriptions (#RX) 63.7% 66.2%
$ Covered Charge per RX $94.47 $87.38
#RXPMPY 10.72 11.51
$Covered Charge PMPY $1,012.41 $1,005.82
Pharmacy
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