office of group benefits tommy d teague chief executive officer
Download
Skip this Video
Download Presentation
Office of Group Benefits Tommy D. Teague Chief Executive Officer

Loading in 2 Seconds...

play fullscreen
1 / 21

Office of Group Benefits Tommy D. Teague Chief Executive Officer - PowerPoint PPT Presentation


  • 117 Views
  • Uploaded on

TODAY’S SMART CHOICES. TOMORROW’S HEALTHY SAVINGS. Office of Group Benefits Tommy D. Teague Chief Executive Officer. Eligibility. Full-time employees and retirees of… state agencies state colleges and universities participating school boards …and legal dependents: Legal spouse

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Office of Group Benefits Tommy D. Teague Chief Executive Officer' - koko


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
office of group benefits tommy d teague chief executive officer
TODAY’S SMART CHOICES...

TOMORROW’S HEALTHY SAVINGS

Office of Group Benefits

Tommy D. Teague

Chief Executive Officer

eligibility
Eligibility

Full-time employees and retirees of…

  • state agencies
  • state colleges and universities
  • participating school boards

…and legal dependents:

    • Legal spouse
    • Never-married child from birth to age 21
    • Never-married child age 21-24 (if full time student)

Effective date of coverage is first day of month after enrollment plus 30 days

ogb plan member premiums
OGB Plan Member Premiums
  • Plan member pays 25% of premium for self
  • Plan member pays 50% of premium for any dependents

Aggregate contribution level is 29% by plan member

ogb health plans
OGB Health Plans

4 plans -- for all plan members

  • PPO(self-insured & administered by OGB)
  • HMO(self-insured; administered by Humana)
  • EPO(self-insured; administered by UnitedHealthcare)
  • Medical Home HMO(fully-insured & administered by Vantage)
ogb medicare advantage health plans
OGB Medicare Advantage Health Plans

5 plans – only for retired plan members with Medicare Part A & Part B

  • 3 Medicare Advantage HMO plans
    • Humana HMO (only in certain areas of LA)
    • Peoples Health (only in certain areas of LA)
    • Vantage/POS Option (statewide)
  • 2 Private Fee-for-Service (PFFS) plans
    • Humana PFFS(nationwide)
    • SecureHorizons Medicare Direct(nationwide)
ogb health plan enrollment
OGB Health Plan Enrollment

Total Enrollment 132,305***

  • Active employees 86,253 65%
  • Retired employees 46,052 35%

*** figures don’t include LSU plans

ogb budget
OGB Budget

FY 2010

$1.264 billion

fiscal year 2009 10
Fiscal Year 2009-10

Fund Balance as of August 14, 2009

$484,176,551

ogb administrative costs
MEDICAL BENEFITS

DRUGS

ADMINISTRATIVE

MENTAL HEALTH

OGB Administrative Costs

MEDICAL BENEFITS

Administrative costs are 3% of total costs

ogb organization
OGB Organization
  • 332 employees
  • 5 divisions
    • Benefit Services
    • Customer Services
    • Information Services
    • Quality Assurance & Administration
    • Legal & HIPAA
enrollment
Enrollment

Retired Employees 46,573

  • With Medicare 27,854

(Medicare is primary) 59%

  • Without Medicare 18,719

(OGB is primary) 41%

life insurance
Life Insurance
  • Group term life plan
  • Prudential
  • State pays 50% of premium for employees and retirees
  • Employee pays premium for dependent life
  • Reduced coverage and premiums, on July 1 after reaching age 65 and age 70
gasb 45 opeb liability
GASB 45 / OPEB Liability

Historically, governments accounted for retiree health care benefits on pay-as-you-go (PAYGO) basis.

  • Cost of covering active employees was only a function of current year costs
  • Did not reflect total cost of employee health coverage …only included current year
  • Without projected future costs, governmental entities’ financial statements did not fully disclose all costs
  • GASB requires disclosure of future costs associated with current services
  • Those future costs are classified as OPEB
gasb 45 opeb liability19
GASB 45 / OPEB Liability

OPEB (other post-employment benefits) – a compilation of all non-pension benefits an employee receives after retirement

Examples include:

  • Health benefits
  • Dental, vision and hearing coverage
  • Prescription drug coverage
  • Life insurance
  • Long-term care commitments
  • Long-term disability
gasb 45 opeb liability20
GASB 45 / OPEB Liability

Liability calculation assumptions:

  • Benefit composition
  • Medical inflation
  • Turnover rate
  • Mortality assumption
    • Will employee live to reach retirement?
    • How long will retiree live in retirement?
  • Discount rate
  • Other factors that affect number of dependents
gasb 45 opeb liability21
GASB 45 / OPEB Liability
  • GASB 45 does not require funding of the calculated liability
  • Decision to fund or not is significant:
    • Funded plans have lower liabilities
    • Unfunded plans have larger liabilities
    • Rating agencies may consider funding
  • Funding requirements are strict; funds must be held in irrevocable trust
  • Depending on funding or not:

State’s liability now stands at

$13.7 billion over 30 years….and growing

ad