2012 / 2013 Benefits Open Enrollment

1. 2012 / 2013 Benefits Open Enrollment Murray School District

2. Why do my medical premiums keep going up?Unsustainable Rise in Health Care Costs • Health care costs have risen more than 50%since 2006, to nearly$13,000 in 2012 • portion absorbed by employees throughpayroll contributions and out of pocket cost has risen 82%in that time span, with the average employee spending nearly $5,000 per year in 2012 • At expected market trend of 9%, health care premiums will exceed $16,000 in 2017, not including employee out of pocket costs +52% $4,581 $12,759 $2,516 $8,374 Source: Aon Hewitt Health Value Initiative, 2011 Analysis Consulting | Health and BenefitsProprietary & Confidential | Point of View 02/2012

3. Murray School District Is Not Immune to this trend

4. The District Administration has done it’s best to mitigate these costs

5. Murray pays a higher % of Medical premium than most employers

6. What is driving these costs?… Human Behavior Lack of Health Screening Poor Stress Management Smoking Physical Inactivity Insufficient Sleep Poor Standard-of-Care Compliance Alcohol Consumption Poor Diet 8 Behaviors and Risks Top 15 Most Costly Conditions 80% of Total Costs of all Chronic Illnesses Worldwide Sources: 2010 World Economic Forum 1 Based on Carrier gaps in care report 2 Based on self insured claims incurred 6/2010-5/2011 Consulting | Health and BenefitsProprietary & Confidential | Point of View 02/2012

7. 86% 33% 300,000 32% 1%–1.5% 2.3% 10% Double Worsening Health Risk – A National Problem It starts with Obesity: know theNUMBERS of Americans will be overweight or obese by 2030 based on current trends of adults in the U.S. are overweight and 34% are obese deaths per year may be attributable to obesity of children in the U.S. are overweight or obese increase in the risk of coronary heart disease mortality for each 2.2 pound increase in body weight increase in claims cost for each unit increase of BMI of all medical spending is accounted for by obesity, compared to 6.5% in 1998 the new onset of diabetes for a weight gain of 11–18 pounds over 10 years Consulting | Health and BenefitsProprietary & Confidential | Point of View 02/2012

8. And it doesn’t just affect Medical costs 2 Days 6% $4.3 Billion 5 x $51,091 vs. $7,503 5.85 Absenteeism and “Presenteism” Average number of work days per year per employee lost specifically to obesity related issues / illness. Increased likelihood of having workplace limitations or accommodations due to obesity related physical restrictions 2004 nationwide employer costs due to obesity related employee absences increase in duration of WC disability claims for employees with BMI >39 Increase in workers compensation claims per 100 employees per year for ee’s with a BMI >39 vs. recommended BMI Average per 100 employee WC medical claim cost for obese vs. recommend weight ee. 7 Consulting | Health and BenefitsProprietary & Confidential | Point of View 02/2012

9. The 15 to Fit program encourages you to take a 15-minute walk while at work twice a day. WHY WALKING? Walking is a simple, cost-effective way to lower healthcare costs, boost productivity, reduce workers’ compensation claims, and improve chronic health conditions such as diabetes, high blood pressure, high cholesterol, and depression. Walking can also help you to reduce stress and manage your weight.

11. SelectHealth is more than just your health plan – we’re your health and wellness partner. A little effort today can have big results tomorrow.

12. Member Discounts We work with local and national vendors so that you can receive discounts to many health-related services. To receive these discounts, just show your SelectHealth ID card. Visit www.selecthealth.org/discounts to learn more. • Health clubs & fitness centers • Personal Training • Vitamins & nutritional supplements • Spas & cosmetic services • Massage therapy & acupuncture • Chiropractic services • Hearing aids