SAPOA HealthCare ProposalCommunityMembershipDepartment

March 17, 2015

Proposal Comments

Offer Value Plan and CDHP plan with slight revisions to City proposal of 2-20-15, with Open Access PPO provider network model.

Change plan administration for out of network benefits. Proposed change the maximum allowed charge for claims adjudication will never exceed the in network allowable charge. Estimated cost reduction is $3.147 million per year

Benefits will remain constant over the life of the contract. Payroll deduction amounts increase by 7% per year.

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Proposal Comments

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In-Network

Open Access PPO

OON In-Network

Open Access PPO

OON

Individual Annual Deductible $500 $1,000 $3,500 $5,000

Family Annual Deductible $1,000 $2,000 $7,000 $10,000

Coinsurance Percentage 20% 40% 0% 30%

Maximum Individual Out-of-Pocket

(includes Deductibles and Co-Pays$2,500 $5,000 $3,500 $7,000

Maximum Family Out-of-Pocket

(includes Deductibles and Co-Pays)$5,000 $10,000 $7,000 $14,000

Office Visit Co-Pay $25 PCP - $50 SP 40% after deductible 0% after deductible 30% after deductible

Emergency Room Co-Pay $250 40% after deductible 0% after deductible 30% after deductible

Urgent Care Center Co-Pay $50 40% after deductible 0% after deductible 30% after deductible

Separate Brand Drug Deductible or

Out of Pocket Cap$100 40% after deductible 0% after deductible 30% after deductible

RX - 30 day Tier 1/ Tier 2 /Tier 3 $10/$25/$40

0% After Ded, Preventive

Drugs Subject to Co-Pays

$10/$25/$40

RX - 90 day Tier 1/ Tier 2 /Tier 3 $20/$50/$80

0% After Ded, Preventive

Drugs Subject to Co-Pays

$20/$50/$80

Monthly DeductionAnnualized H.S.A

Contribution From City

EE Only $0 $2,000

EE & Spouse $0 $2,000

EE & Child(ren) $0 $2,000

EE & Family $0 $2,000

$51.00

$127.50

$0.00

VALUE PLAN CONSUMER DRIVEN HEALTH PLAN

Monthly Deduction

$76.50

City Proposed Rates for Value Plan

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Projected PEPY City Costs Using City Established Rates, assuming $3.147 million

savings in out of network costs

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Current

Enrollment 100% Total Rate City Contrib EE Contrib

EE 394 394 $493.40 $493.40 $0.00

ES 281 281 $1,060.80 $984.30 $76.50

EC 335 335 $888.10 $837.10 $51.00

EF 1,365 1365 $1,455.50 $1,328.00 $127.50

Total Annual 2,375 2,375 $33,321,064.80 $30,769,636.80 $2,551,428.00

Summary Information

Total Cost of All Plans $33,321,064.80

Payroll Deductions $2,551,428.00

City Contributions $30,769,636.80

Less Rx Rebate Transfer $300,000.00

Net City Funding $30,469,636.80

City Medical PEPY - current OON reimbursement $12,829.32

City Medical PEPY - revised OON reimbursement $11,504.27

Stated City PEPY of 2-20-15 $11,300.00

PEPY Differential to City 2-20-15 offer $204.27

Annual Differential to 2-20-15 Offer $485,136.80

Value Plan

FY 2015 FY 2018

SAPOA Proposal 03/17/15

Payroll ProposalLongevity Transition

24 Year Schedule

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Payroll Calendar

Date of Execution:

3 % Base Pay Raise

Elimination of Probationary Pay, Probationary Officers will be paid as a Step A Patrolman

October 1, 2015 : 3% Base Pay Raise FY 16

October 1, 2016 :

2% Base Pay Raise FY 17

Transition and simplification of Longevity

October 1, 2017 : 3% Base Pay Raise FY 18

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Longevity Transition

Section 4. Longevity Pay.

In addition to wages as set forth in the pay schedule, each Officer's base payshall be increased by three percent (3%) for each five (5) years of his longevity, to amaximum of thirty (30) years, i.e., a thirty year veteran would receive an additionaleighteen percent (18%). On each Officer's anniversary date which is not a multiple offive, he shall receive an eight dollar ($8.00) increase in his longevity pay per month,provided, however, that he shall no longer receive monthly longevity pay of $4.00 peryear of service, to a maximum of twenty-five (25) years as is set forth in State law,and that the eight dollar ($8.00) interim monthly adjustments will not increase any fifthyear level.

Effective October 1, 2016, Section 4. Longevity, is amended to read as follows:

In addition to wages as set forth in the pay schedule, each Officer's base payshall be increased by three quarters of one percent (0.75%) for each year of hislongevity, to a maximum of twenty-four (24) years, i.e., a twenty-four year veteranwould receive an additional eighteen percent (18%). Officers shall no longer receivemonthly longevity pay of $4.00 per year of service, to a maximum of twenty-five (25)years as is set forth in State law, TX LGC Sec. 141.032.

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