l~r' 1~ He~~t~hu F%5e V Health Kerr County November 2007 Presentation for: Medical Claim Administration Care Management Services HIPAA Administration COBRA Administration Prescription Drug Administration Stop Loss Consumer-Driven Products Flexible Spending Account Administration Retiree Billing Administration The information contained in this response to the request for proposal is considered confidential. We are providing this infomtation with the understanding the information will not be used for any purpose other than the specific purpose of evaluating our capabilities to provide the services requested. In addition, this information will not be disclosed to person(s) or entity(s) other than those who are involved in the process of evaluating our response. Written permission must be obtained prior to any exceptions of these obligations to maintain the confidentiality of our responses. Fis t'~ Heal th. Kerr County Page Why Fiserv Health? ................................... 1 What is Our Approach? ..............................2 Product Overview .....................................4 Administrative Services ........................... 20 Stop Loss Proposal GeoAccess Reports Aetna Discount Analysis Exhibits FiswHealth.... Why Fiserv Health? Fiserv Health offers advanced technologies, comprehensive solutions, and tailored services to meet the specific interests of our clients. We help our clients not only to manage their benefit plans but also understand them. Offering access to a full menu of self-funded services that provide innovative, client-tailored solutions and benefit plans, we're flexible and dedicated to providing benefit solutions that work for our clients. Fiserv Health businesses can provide: • Medical and dental claim administration • Flexible spending account administration • Care management services • Prescription benefits administration • Stop loss underwriting and administration • Consumer-driven health plan administration • Retiree claim and billing administration • Long-term and short-term disability claim administration • COBRA and HIPAA administration • Access to insured life, long-term and short-term disability, and insured transplant coverage We recognize the challenges Kerr County faces as benefit costs continue to rise. We will manage expenses, monitor legislative changes, and assist members in a timely and accurate manner. To combat rising costs, we continue to invest in innovative technologies, expanded product offerings, and solutions designed to save clients time and money. Fiserv Health believes the client comes first. To support client needs, we have sales and account management representatives throughout the country. These representatives ensure access to the personalized service and prompt resolutions our clients deserve. ~~ ~ 5~,;/ John C. Sickels, CEBS Senior Vice President Sales Steve McBride, CEBS, CLU, ChFC Sales Executive Kerr County ~ Fis re V Healfh. What is Our Approach? F i s e rv H e a l t h h a s t W O g o a l s: to provide top-notch customer service and save clients money. We realize every client's needs are unique and no single solution can meet each of those needs. To address these needs we have adopted a proactive approach to benefits administration. We offer solutions that integrate care management, consumer-driven health care, network utilization, pharmacy administration, and external vendor partnerships. Through these offerings, Fiserv Health delivers a comprehensive benefits package designed to meet the administration needs of our clients. Integration Fiserv Health products and services are fully integrated, which translates into increased savings and better service. This multi-faceted approach allows us to regularly monitor plan performance. While our care management team is focusing on the health and wellness of members, our pharmacy benefits staff is negotiating prescription drug discounts and rebates, and our network professionals are seeking out new applications for cost containment products and developing relationships with multiple provider networks. We understand the intricacies of stop loss insurance and consider value when selecting a err' program. We've established and maintained strong relationships with leading carriers, who can customize products according to client specifications. Our stop loss activity monitoring gives added peace of mind, providing immediate notification of high dollar claims. We have a fully loaded, user-friendly Web site that provides clients with accurate benefit information any time of the day or night. Check it out at www.fiservhealthservices.com. Performance standards Fiserv Health monitors our claim processing functions for financial, payment, and procedural accuracy. We provide our clients regular reports that highlight their plan performance and monitor our administration functions. From medical to dental, disability to flex, our customer service representatives are thoroughly trained on our product lines. We strive to exceed your expectations and surpass the industry standards in customer service. Don't just take our word for it. Fiserv Health is a leader in URAC accreditation, which is nationally recognized as the benchmark for quality in managed care organizations. Fiserv Health Care Management holds accreditation in utilization management, case management, and disease management. Fiserv Health is also accredited in claims processing, HIPAA privacy, and HIPAA security. URAC URAC URA URA ACC:RRDITEU ACCRIiDITGp ACCREDITED ACCREDtTF.D CASC: MANAGIiA11;NT CI 11MS PROC'1?SRIy~; FIIPA,1 PRIVACY I IIP,AA SECURITY DISF.ASE~.~9ANACi[M19@ti'r IiaxineHCAssCwiute ~llaiflCJSAb3(X`IBLU IIIALTII UTILIZATIO\ ?19ANA/oi/2oo8-12/31,/2oo8 Signature Underwriter Phil Sperry Administrators`" Illustrative Quote STOP LOSS QUOTE SPECIFICATIONS O tion 1 O tion 2 Number of Employees Covered Under Stop Loss: Number of Single Covered Under Stop Loss: Number of Family Covered Under Stop Loss: 243 165 78 243 165 78 Enrollment by product: Aetna Signature Administrators PPO: 243 243 Brokerage Commission %: Terminal Liability Option: 0.0 % No Extension (N/A) 0.0 No Extension (N/A) Reimbursement Basis: 18/12 18/12 Individual Coinsurance %: 100 % 100% Individual Stop Loss Amount. $50,000 $60,000 Single Individual Premium Rate: $77.94 $67.67 Family Individual Premium Rate: $212.]9 $184.24 Composite Individual Premium Rate (PEPM)**: $121.03 $105.09 Annualized Individual Premium: $352,923 $306,445 Prior Carrier Run-In Limit: $0 $0 Aggregating Specific Stop Loss Amount: $0 $0 Individual Specific Stop Loss Limits (Lasering): TBD TBD Individual Lifetime Stop Loss Payment Amount: $1,000,000 $1,000,000 Covered Benefits That Apply to Individual Stop Loss: Medical, Rx Medical, Rx Aggregate Stop Loss Percentage: 125 % 125 Composite Aggregate Premium Rate** $5.77 $5.98 Annualized Aggregate Premium $16,832 $17,448 Single Aggregate Stop Loss Factor: $350.79 $363.62 Family Aggregate Stop Loss Factor: $955.03 $989.96 Composite Aggregate Stop Loss Factor (PEPM): ** $544.75 $564.67 Stop Loss Aggregate Limit*: $1,588,479 $1,646,576 Prior Carrier Run-in Limit: $243,481 $243,481 Aggregate Advanced Funding: Excluded Excluded Maximum Annual Aggregate Payment Amount: $1,000,000 $1,000,000 Covered Benefits That Apply to Aggregate Stop Loss: Medical, Rx Medical, Rx FINANCIAL SUMMARY Combined Premium (PEPM) Composite Rate: ** $126.80 $111.07 Total Stop Loss Premium: $369,756 $323,893 Composite Aggregate Factor (PEPM): ** $544.75 $564.67 Stop Loss Aggregate Limit*: $1,588,479 $1,646,576 *Minimum Stop Loss Aggregate Limit will be set using the first month enrollment x Composite Aggregate Factor (PEPM) x # of contract Months. "ISL Premium rates are billed on a single/family basis and Aggregate premium and Aggregate Factors are billed/administered on a composite basis. Please refer to the Stop Loss Caveat docttment for detailed quote contingencies and assumptions. Page 1 of 1 Kerr County Stop Loss Caveat Information This proposal is preliminary. In order to provide you a final, firm proposal, we will need the following updated information no later than 15 days prior to the effective date: • Census data for all employees eligible for coverage, including: each employee's date of birth, insurance status, dependent coverage, gender, and home zip code. Census should also identify whether each employee is active, COBRA, part-time, union, early retiree, retiree or waiver and the plan/product in which the employee is currently enrolled. Additional information maybe required if union members, retirees or part-time workers are eligible. • A description of your plan design -for prior year and proposal year. • Large claim information for the last I2 months within 60 days prior to the effective date, including diagnosis for all individuals with claims for the 12-month period in excess of $25,000. Additional information maybe required to validate this information. • We will require a completed and signed Aetna Life Insurance Company Disclosure Statement. In the event that we do not receive a completed and signed disclosure statement on a timely basis prior to the effective date of Stop Loss coverage, we reserve the right to withdraw our Stop Loss proposal. • Updated monthly claims on a rolling 12-month basis with corresponding exposures up to 60 days prior to the effective date. • We have reviewed claim data through July 2007. Based on this information, there are claimants of concern. Additional information (i.e., more specific diagnosis, treatment plan, incurral dates, etc.) will be required to determine, if lasering is necessary, and the appropriate Individual Stop Loss (ISL) level. For privacy reasons, we have not included names in this document. • We will require a complete, signed plan document (or multiple documents if multiple plans exist) within 90 days of the effective date in order to issue a policy. • Please note: Aetna has in place procedures for handling "protected health information" that are compliant with HIPAA. Disclosure of the requested information is permitted by HIPAA. If you need additional information or require a confidentiality agreement, please contact your account representative. We reserve the right to amend or withdraw our proposal to reflect the underwriting impact of any additional information we obtain or in the event you are unable to provide us any of the information we need to fully underwrite the risk. If the enrolled participation in the Aetna Network is less than 80% at final sale we will reserve the right to rescind our stop loss quote and denyprovider network access. 08/30/2007 www.aetna.com Page 3 Fiserv Health GEONETWORK REPORTS SUMMARY Kerr County Medical Networks Proposed: Aetna GeoNetworks Report Results (Using specified access criteria): Access to Hospitals (1 in 20 miles) Network Total Employees Employees With Access Employees Without Access Percent With Access Aetna 243 220 23 90.5% Total Access 243 220 23 90.5% Access to PCPs (2 in 15 miles) Network Total Employees Employees With Access Employees Without Access Percent With Access Aetna 243 198 45 81.5% Total Access 243 198 45 81.5% Access to Specialists (2 in 15 miles) Network Total Employees Employees With Access Employees Without Access Percent With Access Aetna 243 222 21 91.4% Total Access 243 222 21 91.4% 9/5/2007 Fiserv Health Network Savings- Weighted Kerr County Market Rating Area San Antonio/South Texas Aetna Inpatient Outpatient Ph icfan Overall 63.0% 62.6% 52.5% 58.2% **Aetna has access to the Greater Hill Country physicians in Kerr Co. F%5 CB V Health.. Exhibits Number Aetna General Overview Aetna Institutes of Excellence Directory 2 Aetna National Transplant Program 3 Financial Information -Stop Loss General Description - Aetna will cover run-in claims only when the claims under the prior plan were subject to medical management. - Any individual who has an individual specific amount (that is, "lasered") will have their run-in claims also applied to that special limit. • Run-Out Included - (3 months for new business -first policy year only 12/15 contract). Aetna can offer run-out coverage in the first policy year with a 12/15 policy. A 12/15 policy includes all claims incurred within a 12-month policy period but paid within 15 months ending 3 months after the end of the policy period. Pooled claims reimbursed under Aetna's stop loss as a result of the run-out period claims will not accumulate toward the subsequent year's pooling or aggregate limits. Claims paid until the end of the 15-month period will be covered by Stop Loss assuming the policy is kept in force or that termination occurs no earlier than policy year-end (12 months). Should the Stop Loss policy be terminated earlier than the 12 months, Stop Loss coverage would extend for 3 months following termination. Note: All first-year policies will be renewed on a paid basis in the second and subsequent policy years. Terminal Liability Option (TLO-3 or TLO-6) -Terminal Liability Option is Stop Loss run-out protection only in the event of termination of Stop Loss coverage. • Covers claims incurred under the plan prior to termination and paid within three months of the termination date. TLO may only be added to the Stop Loss coverage in advance of the renewal policy year. • The customer must advise Aetna, in writing, that they intend to terminate and use their run-out protection at least 31 days in advance of the date of termination. When the option is exercised, two months of premium will be due at termination for the TLO-3 product and three months of premium will be due at termination for the TLO-6 product. • The Individual Stop Loss amount is continued through the three-month run-out period (TLO-3) or six-month run-out period (TLO-6). • The Aggregate Stop Loss amount is increased by three months of additional aggregate liability for either the TLO-3 or TLO- 6 products. • Total aggregate liability limit is subject to minimum level specified in the policy. Aggregate coverage is subject to a minimum attachment level to protect against declining enrollments throughout the policy period. Monthly Aggregate Advance Funding Option- Aetna will reimburse the Insured during the policy year if, at the end of any month during the policy year, the net eligible claim expenses exceed the monthly Aggregate Stop Loss Amount subject to the minimum attachment point. "Aetna" is the brand name used for products and services provided by one or more of the Aetna group of subsidiary companies. These companies include: Aetna Life Insurance Company and Aetna Insurance Company of Connecticut. www.aetna.com Page 5 Financial Information -Stop Loss CGeneral Descrip~iota Stop los.~~ polkies rnur ~10~ eoi~e~~ ul! health cure es/cerise c ~ i -~ O ~--~+ V ~ ~ O ~ " ~- V O O ~- ~ O >..,-~ O -- t6 ~ U z L. ~ Q ~ Q ~ ~ ~ -Qj ~ c~ ~ C~ ~ O V ~ O ~ ~ O ~ ~ r- 00 N ~ ~ ~ ~ U _ ~ ~ ~ ~ ~ I I I ~ i I I I I I I ~- Q~ C ~ _ ~ O ~ ~ C ~ ~ ~ ~ ~ L- ~ ~ N ~ U U U Rf tQ Ri (!~ ~ ~ ~ I` N ~-- 00 ~_ N d. a~ 0 L L c~ G Q~ mU rn d' ^ m r J tII N r .-.. M Cfl N e- Q~ C J ~ J as ~ ao r (~. ~' ^ ^ a Z7 C ~ ~ t~ ~ ~ a--+ ~ ~ U . 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