Welcome From Your Coop Board

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Welcome From Your Co-op Board!!

• John Bloor, Non-Profit Resource Group
• Tim Day, The Weyers Group
• Nan Nelson, Green Bay Area Chamber of Commerce
• Jeff Ottum, Greater Green Bay Community
  Foundation
• Paul Jadin, Green Bay Area Chamber of Commerce
• Graham Ness, Insurance Associates
• Gary Clevers, Financial Life Cycles
• Phil Hauck, TEC/The Executive Committee
• Phil Mattek, Green Bay Area Chamber of Commerce

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Our goals today.

• To introduce you to our insurance partner
• To provide an overview of the program
• To encourage our members to sign up for in-depth
  one-on-one information sessions to be held next
  week
• To inspire members to indicate their desire to
  sign up for this health plan by October 31 so we
  can be up and running by January 1, 2007

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We Are Extremely Pleased To Announce

• The selection of Destiny Health as our insurance
  partner
• Destiny Health is the U.S. subsidiary of
  Discovery Health.a South African firm that is
  the world's largest marketer of consumer-driven
  health plans

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As You Will Hear Today, Destinys Program
Addresses ALL of our key Mission elements

• Stabilize Health Insurance Rates
• Through Cooperative Purchasing
• Through Personal Accountability
• Through Healthier Lifestyles

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Why We Value Our Members Agents So Much

• Your Critical Importance
• Wellness Drives Cost Stabilization

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Insurance Partner Selection Process

• Team of Board members, industry experts,
  consulting actuary
• Four very strong proposals .... Based initially
  on the concept then refined to reflect our
  specific membership
• Health and demographic data from applications
  shared confidentially . No employer or employee
  names
• Key Decision Criteria . How is what was proposed
  different (and better) than what our members
  could purchase on their own in the open
  marketplace? How well did it match our Mission?

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Overview of Plan

• Three year contract
• Employers will have choice of three plan
  designs. All high deductible and HSA/HRA
  qualifiedcan switch to a different design
  annually if so choose
• All plans include 400 of first dollar coverage
  on preventive procedures

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Overview of Plan

• Broad provider network encompassing virtually all
  area health systems
• To participate in the plan, 75 of each
  employers eligible employees must enroll

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Overview of Plan

• Our 230 member companies were each evaluated
  based on current health status of employees
• The process allowed the co-op to offer a product
  that is attractive and competitive to all
  employers From those with an excellent recent
  health history and low current premiums to those
  with higher premiums

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Overview of Plan

• The process also allowed Destiny to guarantee
  these rates REGARDLESS of how many member
  companies enroll
• The only thing that could change your initial
  premiums will be new hires or terminated
  employees or employees who didnt fill out the
  application in June. Destiny will ask you to
  update your roster. They are prepared to QUICKLY
  inform you if there is any change.

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Overview of Plan

• Companies with 11 or more eligible employees
  composite rated same premium for each
  employee regardless of age/gender
• Companies with 10 or fewer eligible employees
  age/gender rated different premium for each
  depending on age/gender

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Annual Renewals

• Renewals Driven By Two Key Things
• Destiny Vitality status
• Individual Employer Health Changes

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Annual Renewals

• Vitality program assigns a status to each
  employee based on their participation in a
  variety of health improvement activities as
  well as the health results they achieve
• Four levels. Bronze, Silver, Gold, Platinum
• Weve looked at this . Everyone starts at
  Bronze. Silver is VERY achievable!

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Total Co-op Renewal Increase Caps

• If 40 or more of total co-op employees achieve
  Silver or greater status within a year, total
  premium dollars paid by the co-op are capped
  for the following year
• 40-69 9.75 rate cap
• 70-99 6.75 rate cap
• 100 2.75 rate cap

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Rate Increase Caps

• The Total Premium paid by the co-op will NOT
  exceed these levels regardless of changes in
  health status
• But individual employers MAY see differences in
  their own premiums (up or down) from these caps

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Rate Increase Caps

• Individual employers will be evaluated each year
  for changes in health status
• An employers premium may move up or down based
  on these changes

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Rate Increase Caps

• Any such shifts will be on top of the total co-op
  renewal
• However, these shifts are also capped
• Employers with 51 or more employees have a
  maximum increase of 20 (on top of the co-op
  increase)
• Employers with 50 or fewer employees have a
  maximum increase of 15 (on top of the co-op
  increase)
• ALSO..

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Total Pool Caps

• Remember that the total co-op premium remains
  capped by the Vitality achievement rule (the
  Power of the Pool!!)
• Thus, every dollar of increase beyond the total
  pool cap received by one employer must be offset
  by a dollar decrease at another employer so that
  the total premium dollar caps are still achieved

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Just in Case..

• But what happens if at least 40 of our total
  co-op employees do NOT achieve Silver or greater
  Vitality status???
• No total co-op cap . Normal medical cost trend
  increases will apply.
• However individual employers can then receive up
  to a 7 discount off their renewal based on their
  OWN employees Vitality improvements

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This is a lot of information!!!

• True. So lets simply summarize
• Dramatic changes to health within an employer can
  affect their rates but large employers have no
  caps at all today. Now we have a maximum of the
  pool cap plus 20 (15 for smaller employers)
• And for every up there must be a down an
  individual employer could actually see rate
  DECREASES year over year
• It all depends on our focus on wellness and
  healthy lifestyles we can get as little as a
  2.75 rate cap if we ALL do this! And costs will
  decline even further long-term as we get smarter
  and healthier.

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Additional Employee Benefits

• So the co-op membership receives a significant
  benefit from Vitality
• And individual employers receive a significant
  benefit from Vitality
• Of course individual employees benefit from both
  the cost and health improvements. But they also
  benefit even more directly through a series of
  very valuable financial and consumer rewards
  offered by Destiny (stay tuned).

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Speaking of Wellness.

Destinys program is comprehensive and
fully-integrated as you will see But the Co-op
will add even more to it
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HLC Wellness Program

• More Personalized, Influential Approach
• Full Health Risk Assessments
• Personal Counseling/Agreement
• Telephone Follow-up
• Effectiveness Reporting
• Vendor Selection Status

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HLC Wellness Program

• Wellness Provider Committee
• Information/Education Committee
• Cost/Quality Committee
• www.healthylifestylescoop.org

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HLC Wellness Program

• Fees No Surprises
• The premiums you will see today include the 5
  pepm co-op fee plus 12.50 (employee only) to
  25.00 pepm (with spouse) additional estimated
  fees for the co-op wellness programs. Fees will
  be finalized later this fall when we complete
  vendor selection.
• They will very likely be lower than this!

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Without further ado.

• We are very pleased to introduce our partners
  from Destiny Health!

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The Destiny Health Plan
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The Vitality Program Provides Immediate Rewards
for Getting Healthy
Get Healthy
Spend Vitality Bucks
Get Vitality Bucks
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Simply Achieve Vitality Status
Bonus Vitality Bucks count toward achieving next
Vitality Status
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Vitality Case Study

• Sally Johnson
• 42 Years Old
• Single Coverage

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Vitality Check

• A Key Activity in Vitality
• A preventive screening that includes a Biometric
  exam plus blood draw.
• Cost of the exam is included in the Wellness fees
  and premiums as previously discussed

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Health Risk Assessment

• A questionnaire covering current lifestyle and
  health history
• Created in partnership with the University of
  Michigans Health Management Research Center
• Maintains historical data and links to various
  areas within the Destiny Health Plan website
• Available online or on paper
• Robust employer reporting
• 1,500 Vitality Bucks earned for completion

Integrates the results of Vitality Check
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Vitality Case Study

• Vitality Check participation/results 7,750
  Bucks
• Completion 750 Bucks
• BMI lt 25 2,000 Bucks
• Tobacco free 1,250 Bucks
• Target blood pressure, blood glucose and
  cholesterol 1,250 Bucks each

• Pap smear and mammogram 1,000 Bucks

• Health Risk Assessment 1,500 Bucks

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Fitness Assessment

• VO2 testing measures the rate of oxygen uptake,
  or consumption, during exercise
• Performed every 6 months to track improvement
• 750 Vitality Bucks for receiving assessment plus
  additional Bucks based upon results

Qualified health club facilities offer
comprehensive assessments which include heart
rate and blood pressure measurements, body
composition, cardiovascular testing with a sub
max VO2 score, strength and flexibility testing.
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Vitality Case Study

• CPR certification 500 Bucks

• Online heart rate/caloric needs calculators
  500 Bucks

• Two 5k races 1,000 Bucks

• Fitness Assessment with level 2 result 2,750
  Bucks

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Discounted Online Catalog by Status
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Vitality Wellness Rebates

• Provides members with complete flexibility

Members can receive Gym Membership Rebate or
Vitality Fitness Network subsidy, but not both
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Savings Account

• Use it or keep it
• First dollar coverage
• Interest Bearing
• HealthEOS Plus discounts apply

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Integrated Operations Ensure Ease Of Use
Step 1. Member visits provider and shows their
ID card
Step 2. Provider submits claim to Destiny Health
Step 3. Destiny Health pays provider and supplies
EOB to member
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Optional Riders Provide Flexibility
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Plans to be offered

• Three deductible options
• 1500, 2000 or 2500 (single)
• 100 / 80 Coinsurance
• Optional Drug Riders
• HSA or HRA

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Other HSA/HRA Options?

• Destiny Healths HSAs and HRAs are fully
  integrated with heath plan with no extra fees
• Customized options are available outside of the
  plan for additional fees
• The Co-op is negotiating with local providers for
  preferred Co-op pricing

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Your Next Steps

• Employer/Broker/Destiny Health meetings October
  9 - 13 1039 W. Mason Street 800 -500 or
  later
• Sign up for a meeting time today or call Greg
  Berth at 1-920-257-4000
• Complete Agency Licensing Agreement

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Employer Next Steps

• Complete Employer Application with finalized plan
  design
• Complete Employee Application (with health
  statements for employees not on roster)
• Complete Brown County HLC Employer Agreement by
  October 31st
• Return all materials to Destiny Health
• Melissa Moores
• Destiny Health Wisconsin
• 200 South Executive Drive
• Brookfield, Wisconsin 53005

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QUESTIONS?