Self-Funded Health plan status. Financial and Claims Reports for the period July 1, 2007-October 31, 2007

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1 6500 Arapahoe, P.O. Box 9011 Boulder, Colorado Division of Human Resources Fax Self-Funded Health plan status Financial and Claims Reports for the period July 1, 2007-October 31, 2007 Attached is the estimated financial and claims analyses for the district s self-funded health and dental plans, administered by Great-West Healthcare and Delta Dental respectively. Approximately 68 percent of eligible BVSD employees are covered under our self-funded health plan administered by Great-West and 32 percent are covered under Kaiser, a fully insured plan. BVSD s self-funded dental plan is administered by Delta Dental. The district has former employees and dependents in all three plans covered under COBRA. For the purposes of this report, 100 percent of the costs of the District s consulting firm, Gallagher Benefits Services and BVSD s internal staff costs are included as part of the self-funded plans. These reports do not show the wellness contributions from Great-West or Kaiser. In total, the wellness budget is less than $120,000 for the year. It is important to note that although these reports cover the time period of July 1 through October 31, 2007, the medical claims data and prescription drug costs are not exactly in sync with the calendar month. Bill Robinson, the district s benefits consultant with Gallagher Benefit Services, summarized the first four months of the self-funded plans as follows: In general, the self-funded medical/rx and dental plans are operating as projected. The medical/rx plan has generated, as expected, a surplus of over $1.0 Million in its first four months. This surplus developed in the first three months of the current plan year as claims were run-out under the prior fully insured Cigna plan. We expect the cumulative surplus to reduce over the remainder of the plan year. The dental plan operated favorably the first four months. It generated a surplus of over $100,000. We expect the balance to decline slightly over the remainder of the year as dental costs increase as projected. In conclusion, both self-funded plans are performing as expected through the initial four months of the plan year. If you have any questions, please contact Bob Jamieson, Human Resources Director (Benefits) at or bob.jamieson@bvsd.org.

2 Table of Contents for Reporting Package Year-to-Date - July 1, October 31, ESTIMATED PLAN STATUS 2. MONTHLY MEDICAL & Rx CLAIMS & ENROLLMENT - TOTAL 3. MONTHLY DENTAL CLAIMS & ENROLLMENT This analysis is for illustrative purposes only, and is not a guarantee of future expenses, claims costs, managed care savings, etc. There are many variables that can affect future health care costs including utilization patterns, catastrophic claims, changes in plan design, health care trend increases, etc. This analysis does not amend, extend, or alter the coverage provided by the actual insurance polices and contracts. Please see your policy or contact us for specific information or further details in this regard.

3 Plan Status 7/1/2007 through 10/31/2007 Medical & Rx Dental Average Enrollment 2,451 3,513 Beginning Fund Balance $4,100,000 $281,891 Funding Contributions - All Sources $4,686,489 $713,780 Plus Interest (Oct. Estimated) $70,671 $13,153 Total Funding $4,757,160 $726,933 Claims Costs Paid Claims/Disease Management $2,536,882 $569,766 Less Claims Over Stop Loss $0 $0 Pharmacy Claims $619,408 $0 Total Net Claims $3,156,291 $569,766 Fixed Costs Claims Administration Fee $169,609 $52,699 Network Access Fee $68,628 $0 Utilization Management Fee $24,510 $0 Specific Stop Loss Premium $207,950 $0 Aggregate Stop Loss Premium $10,294 $0 Internal Costs $42,000 $9,600 Consulting Fee (ASO Portion) $22,500 $2,500 Total Fixed Costs $545,492 $64,799 Total Costs $3,701,782 $634,564 Current Plan Year Surplus\(Deficit) $1,055,377 $92,368 Estimated Ending Fund Balance $5,155,377 $374,259 Est. 6/30/2008 Min. Recommended Reserve Balance $3,109,029 $231,158 % of 6/30/2008 Min. Recommended Reserve Balance 165.8% 161.9% YTD Total Cost Per Employee Per Month $ $45.16 YTD Claim Cost Ratio 67.3% 79.8% YTD Total Cost Ratio 79.0% 88.9% BVSD Claims Report YE 2008 v2.xls Page 1 12/3/2007

4 Total Monthly Medical and Rx Claim Summary A B C D E F G H I Medical Net Drug Card Estimated Total Total Estimated Paid Medical Paid Fixed Total Gain/ Cost Cost Month Employees (1) Funding Claims Stop Loss Claims Claims Cost Cost (Loss) Ratio PEPM (C+D) (E+F+G) (B-H) (H/B) (H/A) July ,421 $1,156,034 $137,885 $0 $137,885 $101,235 $134,703 $373,823 $782, % $ August 2,431 $1,163,626 $632,802 $0 $632,802 $168,027 $135,387 $936,216 $227, % $ September 2,487 $1,186,959 $697,233 $0 $697,233 $172,723 $138,160 $1,008,116 $178, % $ October 2,465 $1,179,870 $1,068,963 $0 $1,068,963 $177,424 $137,241 $1,383,627 ($203,757) 117.3% $ November December January 2008 February March May June July Total YTD 9,804 $4,686,489 $2,536,882 $0 $2,536,882 $619,408 $545,492 $3,701,782 $984, % $ Net Avg PEPM 2,451 $ $ $0.00 $ $63.18 $55.64 $ $ % $ (1) Includes Active and COBRA. BVSD Claims Report YE 2008 v2.xls Page 2 12/3/2007

5 Dental Monthly Claim Summary A B C D E Estimated Total Total Estimated Paid Fixed Total Gain/ Cost Cost Month Employees (1) Funding Claims Cost Cost (Loss) Ratio PEPM (C+D) (B-E) (E/B) (E/A) July ,483 $177,452 $157,685 $16,086 $173,771 $3, % $49.89 August 3,469 $176,899 $167,518 $16,034 $183,552 ($6,653) 103.8% $52.91 September 3,554 $179,971 $114,297 $16,353 $130,649 $49, % $36.76 October 3,547 $179,458 $130,265 $16,326 $146,592 $32, % $41.33 November December January 2008 February March May June July Total YTD 14,053 $713,780 $569,766 $64,799 $634,564 $79, % $ Net Avg PEPM 3,513 $50.79 $40.54 $4.61 $45.16 $ % $45.16 (1) Includes Active and COBRA. BVSD Claims Report YE 2008 v2.xls Page 3 12/3/2007