2006 Executive Council Input

Director of Member BenefitsInsurance

Submitted by Russ Mitchell

July 30-31, 2006

Marriott Hotel

Albuquerque, New Mexico, U.S.A.

August 2006 2

Overview

• Looked at a number of different policy options

• NO options were “wonderful” when insuring one employee and family

• Blue Cross Blue Shield Anthem provided the best “mix and match” options (7 different levels and option sets)

• “Key Care PPO” vs “Virginia Standard”

August 2006 3

• Various deductible limits available typically high 2500-5000

• Various coinsurance limits 0-20%• Buffet styled to avoid unneeded coverages

– Maternity– Dental – Supplementary accident

• Manages costs by high deductibles • Plan costs are just over 1000• Allows access to “any” doctor

Virginia Standard Policy

August 2006 4

Key Care PPO

• Wide range of deductables (300 – 5000)

• Various coinsurance 0% -20%

• Max out of pocket varies a bit too from 0 to $1500

• Lower monthly costs ~600 - 850

• Difference could go into a health savings account to cover coinsurance and deductables

August 2006 5

Some health care math

• If the policy costs 718 a month and has a 1500 deductible per year 8616 is the cost of insurance.

• And if we allocate 1000 per month (12000)

• Leaving 3384 for a health savings account and ample to cover the out of pockets.