Page 23 - IVX Health
P. 23
Financial Reporting
Sample — client premium vs. claims January Fully insured marketing results ssaammppllee
Medical
Incumbent Carrier A Carrier B Carrier C
Current Original Renewal Revised Renewal Proposed Proposed Proposed
1/1/2019 1/1/2020 1/1/2020 1/1/2020 1/1/2020 1/1/2020
Plan Insureds Unit Rate Unit Rate Unit Rate Unit Rate Unit Rate Unit Rate
PPO
EE 431 $619.62 $729.86 $669.03 $690.85 $658.07 $647.86
EE + Spouse 92 $1,357.01 $1,598.44 $1,465.22 $1,443.88 $1,441.20 $1,418.82
EE + Child(ren) 40 $1,177.31 $1,386.77 $1,271.19 $1,284.98 $1,250.35 $1,230.94
Family 92 $1,883.70 $2,218.84 $2,033.91 $2,044.92 $2,000.57 $1,969.51
Annual Premium 655 $7,347,527 $8,654,763 $7,933,434 $8,041,502 $7,803,403 $7,682,299
HDHP
EE 362 $533.57 $628.80 $576.40 $624.94 $560.89 $602.61
EE + Spouse 130 $1,168.55 $1,377.11 $1,262.35 $1,306.14 $1,228.39 $1,319.71
EE + Child(ren) 67 $1,013.81 $1,194.75 $1,095.19 $1,162.40 $1,067.74 $1,144.96
Family 111 $1,622.09 $1,911.60 $1,752.30 $1,849.84 $1,705.13 $1,831.93
Annual Premium 670 $7,116,493 $8,386,629 $7,687,744 $8,150,874 $7,482,496 $8,037,164
TOTAL
TOTAL ANNUAL 1,325 $14,464,020 $17,041,392 $15,621,178 $16,192,376 $15,285,899 $15,719,463
Change vs. Current ($) $2,577,371 $1,157,157 $1,728,356 $821,878 $1,255,443
Change vs. Current (%) 17.8% 8.0% 11.9% 5.7% 8.7%
Change vs. Revised Renewal ($) $571,198 -$335,279 $98,286
Change vs. Revised Renewal (%) 3.7% -2.1% 0.6%
Reduction in total cost increase from Incumbent original renewal:~$1.4M
Savings from revised renewal with plan design change:
• Option 1: Increase PCP/specialist copays by $5 (from $20 to $25 and $30 to $35) will save 0.5% ($78K)
• Option 2: Increase emergency room copays by $50 (from $100 to $150 and $150 to $200) will save 0.7% ($109K)
1 • Option 3: Increase deductibles by $250 (from $250 to $500 and $1,000 to $1,250) will save 2.2% ($344K) 2
Sample client demographic analysis
Demographics Total Eligible Waive Total Enrolled Plan 1 Plan 2 Plan 3 Sample – large claim distribution analysis
Plan Value 0.87 0.860 0.880 0.857
# of Employees 1,082 37 1,045 218 375 452 Sample
% of Employees Enrolled -- 3% 100% 21% 36% 43% Large Claim Distribution
% Male 74% 57% 74% 79% 76% 71%
YTD 2019
% Female 26% 43% 26% 21% 24% 29% Plan Year 2018 (through November) Actuarial Norm - Expected
Annual
Average EE Age (Yrs) 45.0 38.8 45.2 47.2 48.8 41.3
Number of EE Age >=65 33 2 31 7 18 6 Average Members 5,595 5,723 5,723
% over 65 3.0% 5.4% 3.0% 3.2% 4.8% 1.3% Average Employees 3,677 3,778 3,778
Average Tenure (Yrs) 9.6 4.3 9.8 14.7 14.9 3.2
Est Mem to EE Ratio - - 2.2 2.4 2.2 2.0 Frequency/Severity Count Average Cost Count Average Cost Count Average Cost
% Single - - 38% 26% 33% 49% $50K - $100K 63 $27,670 74 $27,617 67 $27,586
% w/Dependents - - 62% 74% 67% 51% $100K - $200K 36 $54,472 29 $52,001 27 $54,548
Average Salary $40,468 $34,691 $40,672 $42,526 $45,752 $35,564
Demographic Risk Factor 1.16 1.02 1.16 1.21 1.30 1.02 $200K - $300K 6 $93,042 8 $96,847 7 $96,001
Geographic Allowed Cost $702.34 $697.19 $702.52 $703.23 $703.91 $701.03 $300K - $450K 4 $152,096 2 $143,166 3 $144,277
Geographic Relativity 1.03 1.02 1.03 1.03 1.03 1.02 $450K+ 2 $339,129 2 $223,245 2 $290,574
Generation Total Eligible Waive Total Plan 1 Plan 2 Plan 3 Grand Totals 111 $49,819 115 $44,843 106 $48,040
Enrolled
Silent Generation (1927-1945) 1 0 1 1 0 0 Total Large Claims >$50K $13,800,000 $12,914,800 $12,742,400
Baby Boomers (1946-1964) 255 7 248 54 126 68
Gen X Baby Busters (1965-1980) 431 7 424 100 160 164
Gen Y Millennials (1981-2000) 395 23 372 63 89 220 Stop Loss Reimbursements >$450K $795,600 $259,600 $628,000
Gen Z Digitals (2001+) 0 0 0 0 0 0
Total 1,082 37 1,045 218 375 452 Net Paid Large Claims $13,004,400 $12,655,200 $12,114,400
Total PEPM Net Large Claims $118 $122 $107
Generation Total Eligible Waive Plan 1 Plan 2 Plan 3
Enrolled
Silent Generation (1927-1945) 0.1% 0.0% 0.1% 0.5% 0.0% 0.0% Variance to Norm $11 $15 -
Baby Boomers (1946-1964) 23.6% 18.9% 23.7% 24.8% 33.6% 15.0%
Gen X Baby Busters (1965-1980) 39.8% 18.9% 40.6% 45.9% 42.7% 36.3%
Gen Y Millennials (1981-2000) 36.5% 62.2% 35.6% 28.9% 23.7% 48.7%
Gen Z Digitals (2001+) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Total 100% 100% 100% 100% 100% 100%
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IVX Health — Lockton Total Rewards Practice Overview 23 Lockton Companies
Sample — client premium vs. claims January Fully insured marketing results ssaammppllee
Medical
Incumbent Carrier A Carrier B Carrier C
Current Original Renewal Revised Renewal Proposed Proposed Proposed
1/1/2019 1/1/2020 1/1/2020 1/1/2020 1/1/2020 1/1/2020
Plan Insureds Unit Rate Unit Rate Unit Rate Unit Rate Unit Rate Unit Rate
PPO
EE 431 $619.62 $729.86 $669.03 $690.85 $658.07 $647.86
EE + Spouse 92 $1,357.01 $1,598.44 $1,465.22 $1,443.88 $1,441.20 $1,418.82
EE + Child(ren) 40 $1,177.31 $1,386.77 $1,271.19 $1,284.98 $1,250.35 $1,230.94
Family 92 $1,883.70 $2,218.84 $2,033.91 $2,044.92 $2,000.57 $1,969.51
Annual Premium 655 $7,347,527 $8,654,763 $7,933,434 $8,041,502 $7,803,403 $7,682,299
HDHP
EE 362 $533.57 $628.80 $576.40 $624.94 $560.89 $602.61
EE + Spouse 130 $1,168.55 $1,377.11 $1,262.35 $1,306.14 $1,228.39 $1,319.71
EE + Child(ren) 67 $1,013.81 $1,194.75 $1,095.19 $1,162.40 $1,067.74 $1,144.96
Family 111 $1,622.09 $1,911.60 $1,752.30 $1,849.84 $1,705.13 $1,831.93
Annual Premium 670 $7,116,493 $8,386,629 $7,687,744 $8,150,874 $7,482,496 $8,037,164
TOTAL
TOTAL ANNUAL 1,325 $14,464,020 $17,041,392 $15,621,178 $16,192,376 $15,285,899 $15,719,463
Change vs. Current ($) $2,577,371 $1,157,157 $1,728,356 $821,878 $1,255,443
Change vs. Current (%) 17.8% 8.0% 11.9% 5.7% 8.7%
Change vs. Revised Renewal ($) $571,198 -$335,279 $98,286
Change vs. Revised Renewal (%) 3.7% -2.1% 0.6%
Reduction in total cost increase from Incumbent original renewal:~$1.4M
Savings from revised renewal with plan design change:
• Option 1: Increase PCP/specialist copays by $5 (from $20 to $25 and $30 to $35) will save 0.5% ($78K)
• Option 2: Increase emergency room copays by $50 (from $100 to $150 and $150 to $200) will save 0.7% ($109K)
1 • Option 3: Increase deductibles by $250 (from $250 to $500 and $1,000 to $1,250) will save 2.2% ($344K) 2
Sample client demographic analysis
Demographics Total Eligible Waive Total Enrolled Plan 1 Plan 2 Plan 3 Sample – large claim distribution analysis
Plan Value 0.87 0.860 0.880 0.857
# of Employees 1,082 37 1,045 218 375 452 Sample
% of Employees Enrolled -- 3% 100% 21% 36% 43% Large Claim Distribution
% Male 74% 57% 74% 79% 76% 71%
YTD 2019
% Female 26% 43% 26% 21% 24% 29% Plan Year 2018 (through November) Actuarial Norm - Expected
Annual
Average EE Age (Yrs) 45.0 38.8 45.2 47.2 48.8 41.3
Number of EE Age >=65 33 2 31 7 18 6 Average Members 5,595 5,723 5,723
% over 65 3.0% 5.4% 3.0% 3.2% 4.8% 1.3% Average Employees 3,677 3,778 3,778
Average Tenure (Yrs) 9.6 4.3 9.8 14.7 14.9 3.2
Est Mem to EE Ratio - - 2.2 2.4 2.2 2.0 Frequency/Severity Count Average Cost Count Average Cost Count Average Cost
% Single - - 38% 26% 33% 49% $50K - $100K 63 $27,670 74 $27,617 67 $27,586
% w/Dependents - - 62% 74% 67% 51% $100K - $200K 36 $54,472 29 $52,001 27 $54,548
Average Salary $40,468 $34,691 $40,672 $42,526 $45,752 $35,564
Demographic Risk Factor 1.16 1.02 1.16 1.21 1.30 1.02 $200K - $300K 6 $93,042 8 $96,847 7 $96,001
Geographic Allowed Cost $702.34 $697.19 $702.52 $703.23 $703.91 $701.03 $300K - $450K 4 $152,096 2 $143,166 3 $144,277
Geographic Relativity 1.03 1.02 1.03 1.03 1.03 1.02 $450K+ 2 $339,129 2 $223,245 2 $290,574
Generation Total Eligible Waive Total Plan 1 Plan 2 Plan 3 Grand Totals 111 $49,819 115 $44,843 106 $48,040
Enrolled
Silent Generation (1927-1945) 1 0 1 1 0 0 Total Large Claims >$50K $13,800,000 $12,914,800 $12,742,400
Baby Boomers (1946-1964) 255 7 248 54 126 68
Gen X Baby Busters (1965-1980) 431 7 424 100 160 164
Gen Y Millennials (1981-2000) 395 23 372 63 89 220 Stop Loss Reimbursements >$450K $795,600 $259,600 $628,000
Gen Z Digitals (2001+) 0 0 0 0 0 0
Total 1,082 37 1,045 218 375 452 Net Paid Large Claims $13,004,400 $12,655,200 $12,114,400
Total PEPM Net Large Claims $118 $122 $107
Generation Total Eligible Waive Plan 1 Plan 2 Plan 3
Enrolled
Silent Generation (1927-1945) 0.1% 0.0% 0.1% 0.5% 0.0% 0.0% Variance to Norm $11 $15 -
Baby Boomers (1946-1964) 23.6% 18.9% 23.7% 24.8% 33.6% 15.0%
Gen X Baby Busters (1965-1980) 39.8% 18.9% 40.6% 45.9% 42.7% 36.3%
Gen Y Millennials (1981-2000) 36.5% 62.2% 35.6% 28.9% 23.7% 48.7%
Gen Z Digitals (2001+) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Total 100% 100% 100% 100% 100% 100%
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IVX Health — Lockton Total Rewards Practice Overview 23 Lockton Companies
