NEW MEXICO PUBLIC SCHOOLS INSURANCE AUTHORITY

Benefits ProgramApril 2008

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COVERED EMPLOYEES

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Basic Life

Vol. Life

Disability

Medical

Dental

Vision

19972007

2

OVERVIEW

•$276 Million Expected Claims

•Claim reserves are fully funded

•Excess Cash Balance

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BIG BID RESULTSJoint Purchasing underthe Consolidated Purchasing Act

NMPSIA, NMRHCA,State of New Mexico,APS

Quotes for Medical, Health Management, Dental, and Vision

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BIG BID RESULTSCollectively, nearly200,000 members

Bid Analysis by staff,procurement managerand each agency’sconsultants

Self-Insuredadministrative serviceOnly (ASO) fees andinsured quotes

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MEDICAL

Finalists:BCBS, Lovelace,Presbyterian,

Cigna,United HealthCare,

Award:BCBS, Presbyterian

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DENTAL

Finalists:Delta Dental NMUnited Concordia

Award:United Concordia

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VISION

Finalists:Davis Vision,Spectera, VisionService Plan

Award:Davis Vision

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PREMIUM INCREASES 10/08

Blue Cross Medical: +5.5% Presbyterian Medical: +9.9%UCCI Dental: +9.9%

Davis Vision: No ChangeThe Standard Life: No ChangeThe Standard LTD: No Change

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APPLES + ORANGES

•2% of Salary is greater than 9.9% of insurance

•3% of Salary is greater than 9.9% of insurance

•9.9% increase on employee’s portion for single dental is $.90 per month

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APPLES + ORANGES SALARY INCREASE INSURANCE INCREASE

• 3% ANNUAL INCREASE ON $13,000 = $390

• 2% ANNUAL INCREASE ON $42,000 = $900

• INSURANCE INCREASE = $72 . . . $281

• INSURANCE INCREASE =

$ 115 . . . $449

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MEDICAL REVENUE VS. MEDICAL/RX CLAIMS(in millions)

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AVERAGE MEDICAL INCREASE

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BENEFITS FUND BALANCE (in millions)

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USE OF FUND BALANCE

•Reduced 2006 increase from 11.5% to 8.75%

•Postponed 2007 7.4% from October 2007 to February 2008

•Enhanced plan benefits

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ENHANCED PLAN BENEFITS

•PCP Copay $15•Physical Therapy Copay $20•Orthodontia maximum to $1,500•Improved dental plan periodontal

benefit•$2/$5 Generic drug Copay•$0 Copay for formulary diabetic

supplies, insulin, and oral medications

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BCBS HIGH OPTION

MONTHLY IMPACT

Single Two Party Family

02/08Rates

+7.4% $434.50 $826.32 $1,103.66

10/08Rates

+5.5% $458.40 $871.78 $1,164.36

MONTHLY INCREASE

$23.90 $45.46 $60.70

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BCBS EMPLOYEE IMPACT

MONTHLYIMPACT

Single Two Party Family

INCREASE (EMPLOYER+ EE)

$23.90 $45.46 $60.70

MONTHLY INCREASE IF EE @ 40%

$9.56 $18.18 $24.28

MONTHLY INCREASE IF EE @ 25%

$5.98 $11.37 $15.18

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PRESBYTERIAN HIGH OPTION

MONTHLY IMPACT

Single Two Party Family

02/08 Rates

+7.4% $337.30 $708.26 $944.42

10/08 Rates

+9.9% $370.70 $778.38 $1,037.92

MONTHLY INCREASE

$33.40 $70.12 $93.50

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PRESBYTERIAN EMPLOYEE IMPACT

MONTHLYIMPACT

Single Two Party Family

INCREASE (EMPLOYER+ EE)

$33.40 $70.12 $93.50

MONTHLY INCREASE IF EE @ 40%

$13.36 $28.05 $37.40

MONTHLY INCREASE IF EE @ 25%

$8.35 $17.53 $23.38

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UNITED CONCORDIA (UCCI) DENTAL

MONTHLY IMPACT

Single Two Party Family

02/08Rates

0% $22.60 $43.04 $67.64

10/08 Rates

+9.9% $24.84 $47.30 $74.34

MONTHLY INCREASE

$2.24 $4.26 $6.70

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UCCI EMPLOYEE IMPACT

MONTHLYIMPACT

Single Two Party Family

INCREASE (EMPLOYER+ EE)

$2.24 $4.26 $6.70

MONTHLY INCREASE IF EE @ 40%

$.90 $1.70 $2.68

MONTHLY INCREASE IF EE @ 25%

$.56 $1.07 $1.68

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UPDATE FROM THE STANDARD

• FICA, 941, and W-2 reporting done by The Standard

• Basic Life Accelerated Benefit can equal 100% (25% specified disease + 75% terminal illness)

• Survey on Section 125 and each school’s policy on when coverage terminates

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IN CLOSING . . .

Thanks!

Questions?

Comments?

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