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ORANGE COUNTY <br />GROUP BENEFITS RENEWAL HIGHLIGHTS <br />For 2009 Plan Year <br />WHAT OUR RECENT CLAIMS SHOW <br />Atta hment 6 <br />~~ <br />1. 56% of total claim costs are incurred by members between ages of 40 - 64. This is consistent in <br />counties across the State. Given that our employee's average age is 41, we can expect to see <br />costs continue to rise because of employee and retiree age. <br />2. There was a 25% increase in cost of Dependent claims for both Family and EE + Spouse tiers. <br />3. Prescription claim costs remains stable, however, prescriptions are 26% of total claim costs at <br />$1,755,361 over past 12 months (average is 18% - 20% in other NC counties). Increasing use of <br />the Mail Order Program would reduce Orange County's prescription costs. <br />4. The Top 3 Diagnostic Categories are conditions which can frequently be helped with <br />improvements in lifestyle: exercise and nutrition: <br />A. Musculoskeletal claims = $846,727 <br />B. Digestive claims = $613,359 . <br />C. Circulatory claims = $444,405 <br />5. Top 3 Maintenance Drugs (those taken daily) also reflect conditions often helped by changes in <br />lifestyle: <br />A. Nexium (heartburn and acid reflux) <br />B. Lipitor (high cholesterol) <br />C. Actos (diabetes) <br />6. Low usage of mail-order on prescriptions (4.76%) although better than prior year. Mail Order <br />saves the Employee a full co-pay every three months for every Rx filled and allows for a larger <br />rebate from Caremark to NCACC, passed on to Orange County at renewal by reducing total claim <br />cost when rating. <br />OTHER FACTORS <br />1. Net paid claims decreased by $84,790 over prior year. <br />2. As a result, the renewal will be under the 10% trend (inflationary cost). <br />3. Overall increase for apples-to-apples renewal is 7.9% ($601,005 more for a full calendar year, <br />including all costs (retiree, non-General Fund employees). <br />4. Each option continues the 100% Preventive Care benefits (no co-pays). Every employee and <br />dependent is able to receive a complete head-to-toe annual exam and blood work at no charge, <br />as well as age-appropriate screenings (colonoscopy, PSAs, mammograms, immunizations, etc.) <br />at no cost to the employee. NCACC will continue educational program toward these visits, <br />helping employees maintain health with a focus on preventing serious, chronic conditions in the <br />future. <br />5. Implementation of Cigna's Health Advisor program for all employees is included in each option. <br />This program provides a personal Health/Wellness Coach to every employee who completes a <br />Health Risk Assessment and includes proactive outreach to employees with personal one-on-one <br />coaching on getting/staying fit. NCACC will assist in communications and awards for getting <br />Health Risk Assessments completed for program success. <br />