Board of Aldermen 3-31-2020 Page 5
contribute up to the maximum, as much of the maximum if they like and who don’t spend all that money every
year. That can be a terrific advantage to people because you can carry on beyond retirement to continue to
fund healthcare.
May | have the next slide please? Not exclusive to the High Deducible Health Plan but also available for
HMO participants, Smart Shopper is one of the consumer involvement tools that we introduced in July 1* and
this slide is simply a report to show you that we are progressing better than Smart Shopper would have
expected. So the activation rate, that is the number of the employees who have opened up the Smart
Shopper app and logged in is 10%, versus an expectation based on their book of business of 3% at this point.
Similarly the activated shopping rate, those people who have gone beyond just logging in but actually
shopped for a procedure or a test is 68% comparing favorably to the 47% that they would have expected.
And the shop conversion rate or their term for meaning those people who actually shopped, used the
program and got an incentive was 26%, well ahead of the 8%.
So the total gross savings thus far is $28,000.00, members have received $3,100.00 in incentives so that
netted to $25,000.00 of savings. We have viewed Manchester’s history with Smart Shopper, they had done it
for a number of years before us and it grew slowly and steadily and built and built over the years. So we are
encouraged about the future of this product. The next slide please.
These three bullet points are really the three changes that are proposed to be made to the current HMO.
What we propose is that this July 1* the $20.00 copay is increased to $25.00. The $250.00 or $500.00 two-
person family inpatient and outpatient deductible is increased to $1,500.00 and $3,000.00. That is a
substantial increase, we are well aware of that. And pharmacy copays would increase from $5, $15, $35,
that’s for a 30-day supply at a pharmacy or $5, $30, $70 for 90-day mail order supply to $10, $30, $50; $20,
$60 and $100. The three levels refer to tiers of prescriptions, so generic, brand name, specialty drugs.
Now the next slide? Until now we have had the Health Savings Account Plan for a number of years, but the
contribution that the City makes which is $1,500.00 for an individual member of $3,000.00 for two person or
family has never been committed to in writing sort to speak. It has been our practice since we launched these
plans, but as we were considering this change it became apparent that people were concerned that this was
not memorialized. And so for the first time and we would expect and have openly spoken to Unions already,
if this continues to roll forward, we would at the same time, we ask for plan design in the HMO, also volunteer
to memorialize these contributions to the high deducible health plan. So the contribution is $1,500.00 and
$3,000.00 and the high deductible is $2,0000.00 and $4,000.00.
Effective in July with this change if it is approved, our contribution will be distributed in two installments: one
on or about July 1 and one on or about October 1. We have another slide that we will discuss in a moment
about some of the discussion that we’ve had with employees about this change and one remark or one
concer that was brought forward and the Mayor is meeting on March 12" rang home to us. So what we said
was that we will do that, if you’d have the $3,000.00 contribution we will give you $1,500.00 on July 1* and we
intend to give you the second $1,500.00 in October, but if you experience the need to spend more than that
prior to October 1° just tell us that and we will contribute the remaining 50%. When | say “just tell us” we
would probably ask for some record, but it would not be invasive medical information, it would just be a record
that said they had exceeded the $1,500.00 and we think that is an important improvement that we have
made.
May | have the next slide? Is this my slide Kim?
Kim Kleiner, Admin. Services Director
No, thank you Director Budreau, I'll take this slide. So we understand and we are very sensitive to the cost
that is incurred by our employees. As | stated earlier that slides 2 and 3, the breakdown of our employees
between the single / two person and family plan is somewhat balanced. So in order to give you an analysis
tonight, we just took the most common plan which happens to be the family plan and we thought we could
