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Home My WebLink About01/22/2013 Council Presentation - Healthcare Reform 2013�� , �.�� ': � : � °�F r�«. -. �... x� �- I- . � , I � I care Refarm Stud Sesslan Y J anuary 2 2, 2 013 Tlmellne � , � � ERRP �High Risk Pool � Patient Protections ,�;; i � � � , �� ° � � ,� � r�' „� �° Limit OTC, penalties for nonqualifed HSA r expenses `°�„�� - _ —� ----.V.�.,. ._� , .,� �� m ��-:� T � �.�� _ ' � Galla�;her l3enefit ��rvices, Inc. c},i�nkin� al,e.�d � � �� ;� � � �� k � � �� 1 , �. � , � � _ ��, � Supreme Court Ruling y W-2 Reporting �SBC � Election Day � ,�„ �� * �1r �t �c �k� � ..... � � � � � ry. � � � ��f� .. � .... `.� . � , � . . . ~, � Revenue � Reformed Marketplace � � � I � � - . -� '- �� • 3 :, � $ NO �� i ��t�,. • � - . . . . - '�N ^�,� $2,000 penaity per FTE (minus first 30) �at least one FTE �� receives the tax credit '�� k � Lesser of: ; •$3,000 per FTE receiving tax E. � credit* � � � or � �. •$2,000 per FTE (minus first 30) �� * Only applies to FTEs with household incomes of 400% of FPL or less C,allagher Benefit Services, lnc. 3 thinkin� aheaci ,:, _= No penalty applies! :' Key issues �Estimated Impact� Offer plan Pay or Play •Surveys of Town employees show that medical benefits are an important feature of compensation Minimum required value Affordability Other: Access •Cover actuarial value of 60% essential health benefits •Studies suggest out-of-pocket ranging from $2,050 -$6,350 per person (will vary based on local market) Less than 9.5% of income for employee-only coverage •Arizona will opt-out of expanded Medicaid •Eligibility at 30 hours includes variable hour employees •Auto-enrollment •Offer two plan options •Average member out-of-pocket was $950 over the past 3 years •Lowest paid employee @$21K annually, would result in affordability threshold of $165/month for employee-only •Teal plan is offered at $6/month •Potentially, the Town will cover more people and have additional aggregate costs •Will this happen on or after January 1, 2014? � Gallagher I3en� f it Services, I nc. 4 thinkin�; ahead � - - - . � . �Esti�ated Impact� $1, 600 Outcomes Research Institute Fee Transitional Reinsurance Assessment Fee Health Insurer Fee $45,000 $74,000 $32,000 - $45,000 $22,000 - $32,000 $0 to $22,000 $79,000 - $99,000 $99,000 - $106,000 $106,000 - $125,000 � C�a(la�her E3eneFit Services, Inc. 5 thinkit7� ah��td Patient-Centered $1,400 $1,400 $1,500 Benefits planning and activit u date Y p � Administration � U►niine enrollment and eligibility management � Improve efficiency and promote employee self-service � Group purchasing (with other public employers) • Initial meetings with Oro Valley, Nogales, Sahaurita, Benson, Eloy • Continue to explore apportunities (Marana taking lead) �r Competitive bidding � Bidding life and disability insurance • Goal of improving service/benefits at a competitive price � Benefit alternatives � Evaluate funding alternatives (self-insurance) � Review migration into Copper/Teal benefit structure i Explore account-based options � �Gallagher BeneFit Services� Inc. 6 t h i n k i n� a h e a d �� ;: � ��r � ° . �� . , t .�w � az ��, � 0 �: �� .,, �� ,�:�. ��,. r . ,��, � � � �