High Deductible-Health Savings Acct 603 724 121
The participant shifts will result in a reduction of $74,331 in employee cost, and $297,334 in employer
cost (see Exhibit 3).
The city has also entered into a new program offered by Anthem which provides additional auditing of
claims to prevent waste, fraud and abuse. Enrolling in the new program resulted in the city saving an
additional $2 PEPM (per employee per month) on our administrative fee effective July 1, estimated to
save approximately $51,000 for the FY21 plan year. Anthem will retain 25% of the savings achieved by
the program and estimates the city will have a net savings of $300,000 to $350,000. We will evaluate
the effectiveness of the new program at the end of FY21 and budget any realized savings into FY22.
We would like to note the increase realized in Stop Loss reimbursements. To date, we have realized
$1,221,663 in reimbursements for FY20 compared to a total of $730,952 in FY19, The city received
one bid for renewal of this policy for FY21, which resulted in an increase premium cost of $150,000
annually.
