Download pptx - Open Employee Forum - Medical Plans Employee Welfare Plan Strategies Encompassing Health Risk Management May 6, 2011

Open Employee Forum - Medical PlansEmployee Welfare Plan StrategiesEncompassing Health Risk Management

May 6, 2011

2\EB\STLUN\2011\Medical Plan Overview.pptx

Committee Members & Resources

Committee MembersGary Whitworth, [email protected] Vice President, Treasurer & Chief Investment OfficerRobert Heaney, [email protected] Dean, Graduate Medical EducationThomas Olsen, M.D., [email protected], General Internal MedicineJeanne Donnelly, [email protected], Health Informatics & Information MgmtMark Knuepfer, [email protected], Pharmacology & Physiology ScienceMary Ann Fox, [email protected] Assistant, Frost Vice PresidentSheryll Williams, [email protected] Assistant, PsychiatryTroy Turnipseed, [email protected] Director, Cook School of Business-MBA Program

ResourcesLynn Valli, [email protected] King, [email protected] Frischer, [email protected] Gillies, [email protected] Busler [email protected]

mailto:[email protected]














PCC Members – May 2011

Lawrence Biondi, SJPresidentPhilip AldersonVice President for Health Sciences & Dean, School of MedicineMatthew RyanPresident, Student Government AssociationKathleen BradyVice President, Facilities Management & Civic AffairsTim BrooksVice President & Chief Information OfficerBridget FletcherAssistant to the PresidentJeff FowlerVice President, AdvancementKen FleischmannVice President, Human ResourcesEllen HarshmanDean, John Cook School of Business

William Kauffman

Vice President & General CounselMark Knuepfer [as of May 5, 2011]President, Faculty Senate Manoj PatankarVice President, Frost CampusKent PorterfieldVice President, Student DevelopmentFrank Reale, SJVice President, SLU MadridPaul Stark, SJVice President, Mission & MinistryRay TaitVice President, ResearchTroy TurnipseedChair, Staff Advisory Council Bob WoodruffVice President & CFO


Employee Welfare Program Objective

To provide Saint Louis University employees and their families an

outstanding benefits package at a cost that is affordable and

sustainable for the University


Projected Medical Cost

2009 2010 2011 2012 2013 2014 2015$28,000,000

$33,000,000

$38,000,000

$43,000,000

$48,000,000

$53,000,000

$58,000,000

2009 Programwith No Revisions

2010 Program 2011 Programwith Health Risk Managment Initiatives


What Is Health Risk Management (HRM)

An initiative to improve the overall health of a population and

subsequently impact cost and the long term viability of the

employee medical program


Health Risk Management (HRM) - The Opportunity

Source: 2007 per capita cost and 7 percent projected increase from Towers Perrin 2007 Healthcare Cost Survey.

Assess Risk

Eliminate Waste

Improve Quality

Health Exchange

s

Cadillac Tax

Health Reform Coverage Mandates

2008 2009 2010 2011 2012 2013 2014 2018 2020$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

M E D I C A L P L A N T R E N D

Pe

r E

mp

loy

ee

Pe

r Y

ea

r

O P P O R T U N I T Y

Health Reform Impact

National Trend with 10% HRM Impact

National Trend


Natural Forces

Source: Bureau of Labor StatisticsBy Julie Snider, USA TODAY

WORKFORCE TRENDSPercent of population in the workforce by

age:


Obesity is Epidemic


Where to Focus to Bend the Cost CurveThe Influence of Obesity . . .#1 Modifiable Health Risk

Obesity

High B

lood

Press

ure

High

Choles

tero

l

Diabet

es

Heart D

isease


Clinical Review of SLU PopulationPopulation Stratification

Non-Compliant

504 Members$7,780 PMPY

Compliant

3,677 Members

$4,226 PMPY

EmployeePopulation

7,863 Members

Total Population

Population with Disease


SLU Vitality Program

The Vitality™ wellness program

Helps achieve health and wellness objectives through a customized approach

Vitality interactive website provides Personal Pathway™ comprised of health goals and activities

Earn Vitality Bucks® redeemable in the Vitality Mall

Unique health goals for each member

Activity based on individual needs

Gives an equal opportunity to all members, through different paths, to achieve a greater Vitality Status®

Complete online health risk assessment questionnaire and get your customized Personal Pathway

Participate in the Vitality activities that make up the Personal Pathway to achieve vitality status and earn Vitality Bucks

Reap the benefits of better health and redeem Vitality Bucks for an array of Vitality Rewards® on the online Vitality Mall


SLU Vitality Program—Success Thus Far

plan engage

enjoy status

Numbers through March 2011

14

Plan Design—Current Trends

Consolidate Plan Offerings Streamline administration and increase efficiencies Focus on education of HRM program, not plan

design

Revised Plan Designs Impact cost and reduce required increase to

employee contributions Avoid excise tax under Healthcare Reform? Increase consumerism Increase deductibles Implement Consumer Driven Health Plans (CDHPs)

with Health Savings Accounts (HSA) Eliminate copays and replace with coinsurance Prescription drug deductibles and coinsurance in

addition to copays


What Is a Health Savings Account (HSA)?

A consumer-owned, tax-advantaged savings account, created to pay health care expenses, that is always combined with a qualified high deductible health plan

The benefit of HSAs is in the consumer incentive (it’s your money!) to better plan for, and use, health care resources

Under the HSA plan design Preventive care is covered at 100% The calendar year deductible applies for all other expenses

Employees may utilize a debit card to access funds

Employees elect to contribute to the HSA Contributions are pre-tax Money used to fund medical expenses including deductible and coinsurance


Prevalence by Plan Type

2000*

2001*

2002*

2003

2004

2005*

2006

2007

2008*

2009

2010

0% 20% 40% 60% 80% 100%

8%

7%

4%

5%

5%

3%

3%

3%

2%

1%

1%

29%

24%

27%

24%

25%

21%

20%

21%

20%

20%

19%

42%

46%

52%

54%

55%

61%

60%

57%

58%

60%

58%

21%

23%

18%

17%

15%

15%

13%

13%

12%

10%

8%

0.04

0.05

0.08

0.08

0.13

Conventional HMO PPO POS HDHP

• Distribution is statistically different from the previous year shown (p<.05). No statistical tests were conducted for years prior to 1999. No statistical tests are conducted between 2005 and 2006 due to the addition of HDHP/SO as a new plan

type in 2006.

Distribution of Health Plan Enrollment for Covered Workers, by Plan Type, 2000-2010

• Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 2010