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State Employee Workforce, Compensation, Employment Levels & Health Insurance
Virginia Department of Human Resource Management
Virginia Governmental Employees’ AssociationSheraton Roanoke Hotel and Conference Center, Roanoke, Virginia
May 11, 2013
Workforce
May 9, 2013
Virginia Population andState Employment Levels
Virginia State Employment
Virginia Population
State Employees per Citizen
• 24% fewer employees per citizen in 2010 than in 1980
May 9, 20133
Executive Branch Full-Time Equivalent
Salaried Employees
Change in salaried employees from 1999 to 2012:
• 48.4% increase in Faculty• 1.4% decrease in Classified• 16.7% decrease in At-Wills
Source: DHRM Data Warehouse as June 30thMay 9, 2013
10,000
12,000
14,000
16,000
18,000
20,000
13,160
16,236 16,381
16,957
16,466 16,755
17,483 18,185 18,722
19,398 18,701 18,634
19,040 19,530
FacultyAs of June 30th
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
63,000
65,000
67,000
69,000
71,000
73,000
67,999 68,873
73,050 72,542
70,750 71,099
72,022 72,321
72,854 73,262
71,043
67,855 67,428
67,042
Classified EmployeesAs of June 30th
19992000200120022003200420052006200720082009201020112012200
220
240
260
280
300
320299 302
295
271263 267
253
269
285 287
265
239 244 249
At-Will EmployeesAs of June 30th
4
Classified Employees
Demographics
35%Minority
65%Non-Minor-
ity
Race
46% Male
54% Female
Gender
9%Veteran
91%Non-Veteran
Veteran
Average 47 years
Youngest 18 years
Oldest 88 years
Age
Average 12.1 yrs
Longest 55.9 yrs
≥ 30 yrs service 8%
Service
Source: DHRM Data Warehouse as June 30, 2012May 9, 2013
5
Classified Employees
Turnover
10.8% turnover rate 6807 employees
372755%
103315%
531
8%
272
4%
355
5%307
5%
5829%
0-5 yrs
5-10 yrs
10-15 yrs
15-20 yrs
20-25 yrs
25-30 yrs
30+ yrs
Turnover
Turnover by Years of Service
Retirement-in Lieu of LayoffResign-Military ServiceRetirement-Disability
Separation-Comp Limited ApptSeparation-Layoff
Separation-Layoff Leave ExpiredRemoved-Inability to Perform Duties
Resign-Ill HealthResign-Dissatisfied
DeathResign-School
Retirement-Enhanced Resign-Home Responsibilities
Separation-Long Term Disability Removed-Violation/Conduct
Resign-Leaving AreaResign-During Probation
Removed-Unsat Perf ProbationResign-Other
Resign-Better JobRetirement-Service
3613212837577487136159163181213
311319
421509
12171352
1500
Turnover Reason
Source: DHRM Data Warehouse as June 30, 2012May 9, 2013
6
Classified Employees
Work/Life Balance
Telework
24%Eligible
76%Not Eligible
29%Telework
71%No Telework
46%Not Eligible 54%
Eligible
47%No AWS 53%
AWS
Alternate Work Schedule
24% of positions are eligible to telework, and 29% of eligible employees telework at least one day per week 54% of positions are eligible for an alternate work schedule,
and 53% of eligible employees have an alternate work schedule
Positions PositionsEmployees Employees
Source: DHRM Data Warehouse as June 30, 2012May 9, 2013
7
Compensation & Employment Levels
May 9, 2013
Classified Employees
Salary & Pay Bands
Source: PMIS data as of December 31, 2012
Minimum Maximum Number Percent
1 15,371$ 31,548$ 2,628 3.84%
2 20,082$ 41,214$ 9,541 13.93%
3 23,999$ 49,255$ 22,953 33.52%
4 31,352$ 64,347$ 17,313 25.28%
5 40,959$ 84,062$ 11,785 17.21%
6 53,510$ 109,818$ 3,635 5.31%
7 69,907$ 143,470$ 413 0.60%
8 91,324$ 187,430$ 194 0.28%
9 119,308$ MARKET 16 0.02%
EMPLOYEESBANDS
RANGE
Average Salary
$44,149
Median Salary
$39,307
Lowest Salary
$15,371
Highest Salary
$247,890
Source: PMIS data as of September 30, 2012
May 9,, 20139
Employee Salary by Region
Highest average salary is in Northern Virginia at $51,61016.9% higher than the statewide average
Lowest average salary is in Southside Virginia at $38,46112.9% lower than the statewide average
Source: PMIS data as of December 31, 2012
CHAR
LOTT
ESVI
LLE
NOVA
OTHER
RICH
MOND
ROAN
OKE
SOUTH
SIDE
VIRG
INIA
SOUTH
WES
T
TIDEW
ATER
WIN
CHES
TER
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$40,953
$51,610
$40,976 $44,635 $43,682
$38,461 $39,975 $40,666 $41,664
Average Salary
4%2707
9%5987
30%20,308
6%4108
10%
6320
9%5846
13%6881
1%607
18%12,172
Charlottesville Northern Virginia
Richmond RoanokeSouthside Virginia
Southwest Virginia
Tidewater WinchesterOther
May 9, 201310
Salary compression New employees demand market rate State salaries on average are below market New hires potentially paid more than
experienced employees Lack of funding to address the issue
Salary inequities
State Employee Salary Comparison
Pay Compression
May 9, 201311
State Employee Salary Comparison
96 99 02 05 08 1101234567
StateLinear (State)MarketLinear (Market)
Market Increases
Perc
en
t In
crease
96 98 00 02 04 06 08 10 1201234567
State
Linear (S-tate)
CPI
Linear (CPI)
Perc
en
t In
crease
CPI Increases
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
90
110
130
150
170
190Federal State Local Private
Source: Appropriation Acts, Bureau of Labor Statistics
State employee salary increases lag in all comparisons
Market Consumer Price Index Private Sector Federal Local
May 9, 201312
State dropped below the locality average in
FY 08
Source: DHRM survey
State Employee Salary Comparison
Selected Localities
BASE SALARY INCREASES
Locality FY-04 FY-05 FY-06 FY-07 FY-08 FY-09 FY-10 FY-11 FY-12
Richmond City 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 0.00% 0.00% 0.00%
Charlottesville 3.50% 3.00% 4.00% 4.00% 4.00% 4.00% 0.00% 2.00% 0.00%
Montgomery County 2.50% 5.50% 4.80% 2.50% 6.77% 5.50% N/A 0.00% 3.00%
Fairfax County 4.00% 4.32% 4.37% 4.40% 4.98% 4.98% N/A 0.00% 2.00%
Chesterfield County 2.50% 4.00% 3.00% 4.00% 5.25% 4.00% 0.00% 0.00% 2.00%
Norfolk 4.00% 4.00% 4.00% 4.50% 4.50% 3.50% 0.00% 0.00% 0.00%
Chesapeake 3.00% 3.00% 4.00% 4.00% 4.50% 4.50% 0.00% 1.50% 1.50%
Augusta County 4.00% 4.00% 4.00% 3.83% 3.06% 3.06% N/A 0.00% 0.00%
Locality Average 3.31% 3.85% 3.90% 3.78% 4.51% 4.07% 0.00% 0.44% 1.06%
State Employees 2.25% 3.00% 4.40% 4.50% 4.00% 0.00% 0.00% 5.00% 0.00%
May 9, 201313
State Employee Salary Comparison
Private Sector Salary On average, State
salaries for selected occupations are 19.49% below Private Industry
In 2008, JLARC found State salaries 12% below market
By the end of 2013, State salaries will be 26.3% below market due to cumulative market movements
Source: PMIS 9/1/12, Towers Watson, August 2012
Occupation Private
State Deviation Industry
Attorney $ 114,140.29 $ 59,485.80 -91.88% Internal Auditor $ 72,891.06 $ 49,604.20 -46.95% Truck Driver, Light $ 28,435.74 $ 20,679.74 -37.51% Yard Laborer/Janitorial Supv $ 44,463.16 $ 34,148.18 -30.21% Staff RN $ 62,561.11 $ 48,637.85 -28.63% Secretary $ 38,672.61 $ 30,668.60 -26.10% Architect $ 82,205.15 $ 65,282.79 -25.92% Maintenance Electrician $ 48,392.47 $ 39,206.66 -23.43% Chemist $ 67,935.58 $ 55,628.25 -22.12% Employee Training Specialist $ 55,242.65 $ 45,623.05 -21.08% Cook $ 29,883.38 $ 24,959.06 -19.73% Mail Clerk $ 32,365.05 $ 27,198.53 -19.00% Marketing Specialist $ 51,378.80 $ 43,195.63 -18.94% Social Worker (MSW) $ 54,172.47 $ 45,570.93 -18.88% Accountant $ 52,423.08 $ 45,443.54 -15.36% HR Admin Supv $ 70,417.24 $ 62,014.10 -13.55% Generic Engineer Supv $ 107,435.41 $ 95,450.70 -12.56% Security Guard, Unarmed $ 28,332.34 $ 25,179.18 -12.52% Systems Analysis Supv $ 85,514.04 $ 80,164.82 -6.67% Data Base Administrator $ 92,235.21 $ 86,959.21 -6.07% Cashier $ 31,537.83 $ 29,951.70 -5.30% Environmental Engineer $ 65,660.72 $ 63,187.92 -3.91% Laboratory Aide $ 28,096.91 $ 29,235.68 3.90% Medical lab Tech $ 41,640.03 $ 44,420.24 6.26% Physical Therapist $ 72,465.78 $ 79,570.91 8.93%
May 9, 201314
Pay Ranking of States
Source: 2011 Bureau of Labor Statistics data based on payroll records of what is actually paid out to employees as reported quarterly to employment commissions
State
Federal Government State Gov Local Gov Private Industry
Agv Annual Pay
State Ranking
Agv Annual Pay
State Ranking
Agv Annual Pay State Ranking Agv Annual Pay
State Ranking
State Avg as % of
Private Avg State
Ranking
Alabama
74,979 4 47411 25 36611 31 40103 35 118% 14
Alaska
71,784 10 53216 11 44528 14 48199 13 110% 27
Arizona
67,791 26 50402 18 41858 19 44091 19 114% 21
Arkansas
62,231 39 41478 41 34022 42 36801 46 113% 23
California
73,068 6 63566 2 54915 3 54345 5 117% 18
Colorado
71,933 9 51868 15 41736 20 49245 12 105% 34
Connecticut
70,340 14 63259 3 51132 8 62031 2 102% 38
Delaware
63,695 34 50086 19 47480 11 50535 8 99% 41
Florida
68,518 22 43141 34 45198 12 41377 30 104% 35
Georgia
69,895 18 39948 46 36777 30 45580 17 88% 49
Hawaii
69,803 20 43064 35 55999 2 39838 37 108% 29
Idaho
62,051 40 39857 47 31161 49 35406 47 113% 24
Illinois
71,342 11 61710 4 45050 13 50921 6 121% 9
Indiana
65,010 31 42580 37 35751 38 40272 33 106% 33
Iowa
59,641 47 57921 7 36181 36 38554 42 150% 1
Kansas
61,811 42 47474 24 31783 48 40507 32 117% 17
Kentucky
59,711 45 42332 38 36343 35 39323 39 108% 31
Louisiana
65,422 30 46972 28 36346 34 42458 23 111% 26
Maine
66,408 27 40876 44 34983 40 37389 45 109% 28
Maryland
93,068 1 48610 22 50578 9 50620 7 96% 44 Massachusetts
72,999 7 58345 6 51952 6 60196 3 97% 43
Michigan
69,880 19 55342 8 43548 17 45285 18 122% 6
Minnesota
66,063 28 55325 9 41504 21 48091 14 115% 20
Mississippi
63,039 35 40835 45 32148 47 34217 50 119% 13
Missouri
62,438 38 38041 50 36165 37 41723 28 91% 47
May 9, 201315
Pay Ranking of States Virginia Pay
Ranking• 2nd in Federal
Government same as 2010
• 9th in Private Industry down from 8th in 2010
• 25th in Local Government down from 23rd in 2010
• 33rd in State Government down from 32nd in 2010
• 48th in State average as a percent of Private average same as 2010
Source: 2011 Bureau of Labor Statistics data based on payroll records of what is actually paid out to employees as reported quarterly to employment commissions
State
Federal Government State Gov Local Gov Private Industry
Agv Annual Pay
State Ranking
Agv Annual
Pay State
Ranking
Agv Annual
Pay State
Ranking
Agv Annual
Pay State
Ranking
State Avg as % of
Private Avg State
Ranking
Montana
61,288 44 41608 40 34639 41 34518 49 121% 10
Nebraska
61,857 41 45907 30 37188 29 37567 44 122% 7
Nevada
64,835 32 49004 21 51831 7 41657 29 118% 15 New Hampshire
72,204 8 47332 26 40789 22 47642 15 99% 40
New Jersey
74,714 5 65688 1 57751 1 56885 4 115% 19
New Mexico
68,663 21 47151 27 35520 39 38674 40 122% 8
New York
70,576 12 54952 10 53571 5 63081 1 87% 50 North Carolina
63,024 36 44846 32 38978 26 41933 27 107% 32
North Dakota
58,059 50 45455 31 33217 45 42098 26 108% 30
Ohio
70,073 16 53053 12 42217 18 42244 25 126% 4
Oklahoma
64,135 33 39743 49 33932 43 40157 34 99% 42
Oregon
67,995 24 43027 36 44134 16 42421 24 101% 39 Pennsylvania
68,054 23 53028 13 44518 15 46662 16 114% 22
Rhode Island
77,023 3 61448 5 53970 4 43532 20 141% 2 South Carolina
61,803 43 42151 39 38004 28 37734 43 112% 25
South Dakota
58,753 48 41212 42 30023 50 35086 48 117% 16
Tennessee
70,325 15 40900 43 36578 33 42622 22 96% 45
Texas
69,910 17 46579 29 40295 24 49534 11 94% 46
Utah
62,541 37 47690 23 32490 46 39937 36 119% 12
Vermont
65,763 29 49010 20 36588 32 39502 38 124% 5
Virginia
85,306 2 44163 33 39980 25 50261 9 88% 48
Washington
70,441 13 51341 17 48261 10 49827 10 103% 37 West Virginia
67,910 25 39831 48 33662 44 38565 41 103% 36
Wisconsin
59,654 46 52945 14 38869 27 40627 31 130% 3
Wyoming
58,384 49 51485 16 40662 23 42911 21 120% 11
May 9, 201316
Legislative Update
Salaries 2% increase in payroll tax on January 1, 2013 2% base salary increase to eligible salaried state
employees on July 25, 2013 Contingent on revenue estimates Must have received at least “Contributor” rating for the
performance cycle October 25, 2011 through October 24, 2012
Compression pay increase on July 25, 2013 for employees with 5 or more years of continuous service, capped at 30 years of service
$65 per full year of service $70 per full year of service for DSP sworn employees
Salary range changes 2% increase to the minimum 7% + $1,950 increase to maximumSource: Appropriation Acts
May 9, 201317
Legislative Update
State Employee Compensation
Comprehensive review of compensation Compression, Recruitment and retention, Hiring practices, Strategies to minimize future disparities
Priorities Public Safety Deputy Clerks in District Courts
Study Timeline Initial recommendations and findings due November 1, 2013 Study completed by June 30, 2014
Work Group Representatives Money Committee staff Executive Secretary of Supreme Court, DHRM, DPB, others as needed
18
Legislative Update
Other Legislative Action Human Capital Report
Reporting changed from annually to monthly Annual statement of total compensation
required for each classified employee New requirement
19
20
May 9, 2013
Health Care Reform
Affordable Care Act (ACA) $9.5 million minimum in estimated additional
costs Reduces annual contribution to Medical Flexible
Reimbursement Account from $5,000 to $2,500 Requires publishing of electronic Summary of
Benefits and Coverage for all plans Expands the definition of full-time employee for
health care purposes Provides coverage to all employees that work on
average 30 or more hours per week Applies to employers with 50 or more employees Becomes effective January 1, 2014
21
May 9, 2013
Health Care Reform
Full-Time Employment Status Provides employers options for
measuring the 30 or more hours, on average, per week
PERIOD DATES
Measurement Period 3 months up to 12 months
Administrative Period Up to 90 days
Stability PeriodNo shorter than measurement period
22
May 9, 2013
Dates selected by the State Employee Health Plan to determine full-time employment status
State Employee Health Plan
Full-Time Employment Status
State Employee Health Plan
PERIOD INITIAL DATES
Measurement Period(also called “Look Back” Period)
May 1, 2013 to April 30, 2014
Administrative Period (includes Open Enrollment)
May 1, 2014 to June 30, 2014
Stability Period(same as Health Plan Year)
July 1, 2014 to June 30, 2015
23
May 9, 2013
State Employees Working 30+ Hours
Impact on Health PlanIncomplete data to determine impact of 30 or more hour rule on state health plan eligibility
24
May 9, 2013
State Employees Working 30+ Hours
State Wage Employment Survey
Sent out a Wage Employment Survey ~ 200 agencies surveyed 158 agencies responded 7,386 wage employees met the 30+ hours criteria
Top 10 agencies with 30+ hour employees responding to date
Agency
Number 30+
Wage Employee
sVCCS 1,479VCU 883ABC 605NSU 504DCR 500CNU 483VEC 433W&M 331
DBHDS 317DMV 200
25
May 9, 2013
State Employees Working 30+ Hours
Fiscal Impact of Eligibility Considered several options Reviewed the fiscal impact
Options for Employees Working 30+ Hours Per Week Estimated Cost/Penalty
Scenario 1 All Part-time Employees work <30 hours per week on average per year $0
Scenario 2 Provide Basic Benefits to 30+ Hour Part-Timers, including Dependents $110 million
Scenario 3 Provide Basic Benefits to 30+ Hour Part-Timers only, no Dependents $61 million
Scenario 4 Do Not Provide Basic Benefits to 30+ Hour Part-Timers $113 million
26
May 9, 2013
State Employee Health Plan
Eligibility Decision
Employment Status
Weekly Hours WorkedToday
Hours Worked on July 1, 2014
Full-Time Salaried
32 or more 30 or more
Part-Time Salaried
20 to 31 20 to 29
Wage1500 per year, with exceptions
Avg 29 hours,No exceptions
Governor selected Scenario 1 capping all wage employees at 29 hours on average per week over a year
Does not apply to teaching hospitals
Eligible for Health Plan
Eligible for Employer
Contributions
Yes Yes
Yes No
No No
IRS Guidance Needed “Hours Paid” versus “Hours
Worked” Adjunct Faculty Seasonal Employees Variable Hour Employees
May 9, 2013 9
Health Benefits
FY 2012
Health Plan Enrollment
2429727.1%
34703.9%
1317714.7%
25,26728.1%
42494.7%
1874520.9%
COVA Care and COVA ConnectFY 2012
BasicBasic + Out of NetworkBasic + Expanded Dental Basic + Vsn, Hrng & Exp. DentalBasic + Out of Network and Expanded DentalBasic + All
101,954 employees eligible for state health benefits
92,482 employees enrolled in all plans 207,197 members enrolled in all plans
8,085 8%
2,2022%
0%
9,4729%
COVA Care
81,56580%
Kaiser Perma-nente HMO Waived Coverage
COVA HDHP589
COVA Connect
Health Plan Enrollment
FY 2012
TRICARE
May 9, 2013 29
FY 2012
Cost Trends Total program expense increased 3.5% in FY 12 $883.3 million total claims paid in FY 12 6.7 million total claims processed
FY 08 FY 09 FY10 FY11 FY12
-10%
-5%
0%
5%
10%
15%
Health Benefits Expense Year to Year
Claims Administration Total
2008 2009 2010 2011 2012$700
$800
$900
$1,000
Health Benefits Expense 2008-2012
(in millions)
Claims Administration
$885.1
$858.4
$914.3 $910.7
$942.6
May 9, 201330
FY 2012
Total Cost Per Employee $13,249 total cost per employee in FY 12 4.2% increase in FY 12 from prior year
2008 2009 2010 2011 2012 2008 2009 2010 2011 2012
State Employer Cost Per Employee
9224 9889 9656 10043 10431
National Large Government Employer Cost Per Employee
9226 9779 9996 11251 12144
State Employee Cost
2533 2580 2658 2666 2818
National Average Employee Cost
6000 6820 7330 8008 8584
$1,000
$3,000
$5,000
$7,000
$9,000
$11,000
$13,000
National and State Average Annual Cost Per Employee
2008 2009 2010 2011 2012
$0
$5,000
$10,000
$15,000
Total State Health Benefits Cost Per Employee*
Employer Cost (includes premium)Employee Cost (includes out-of-pocket and premium)
76%
$11,757
$12,468 $12,314 $12,709 $13,249
78%
22%
78%
79%
21%
78%
22%
79%
21%
79%
21%
May 9, 201331
FY 2012
Cost Drivers Expensive procedures Treatment of chronic conditions Prescription drug therapy cost Employee lifestyle Average employee age
<1 1-11 12-17 18-29 30-39 40-49 50-59 60-64 65+
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
808
21,202
14,247
24,526
20,991
29,824
37,253
17,712
6,411
Medical Expense by Age(COVA Care Per Member)
January 2010 - December 2011
Cost Per Member Per Month Ending Member Count
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
•Joint Degeneration
•Coronary Artery Disease
•Hypertension •Diabetes •Hyperlipidemia •GERD
Plan Paid PMPM PPO Norm PMPM
2012 Lifestyle ImpactPlan PerMember Per Month
Pla
n P
aid
PM
PM
Body Mass Index <30.0
Cholesterol <240
Blood Pressure <140/90
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
66%
87%
73%
64%
80%
81%
62%
90%
75%
59%
94%
66%
71%
73%
87%
65%
71%
63%State Employee Health Measures
National Average 2012 2011 2010 2009 2020 National Goal
Sources: CommonHealth biennial health checks of select employee groups and Healthy People 2020
April 18, 2013 32
FY 2012
Top Ten Claims Expense“Top Ten” Claims Expense
MedicalProcedures
Chronic Conditions
PrescriptionDrugs
1. Musculoskeletal
1. Coronary artery disease
1. Nexium (stomach acid)
2. Neoplasms (tumors)
2. Breast cancer
2. Enbrel (rheumatoid arthritis)
3. V-Codes (health services
not classified as disease or injury)
3. Cerebrovascular disease
3. Humira (rheumatoid arthritis)
4. Circulatory 4. Diabetes4. Crestor
(high cholesterol)
5. Ill-defined symptoms (undetermined causes)
5. Hypertension
5. Singulair
(asthma/allergy)
6. Digestive 6. Lung cancer 6. Cymbalta
(depression)
7. Genitourinary 7. Skin cancer7. Copaxone
(multiple sclerosis)
8. Accidental injury 8. Obesity8. Atorvastatin
Calcium (high cholesterol)
9. Nervous system/sense organs
9. Oral cancer9. Lipitor
(high cholesterol)
10. Respiratory 10. Substance abuse10. Amblify
(depression)
47.3% ofAll Claims Expense
6.7% ofAll Claims Expense
5.0% ofAll Claims Expense
Note: These areas may not be mutually exclusive
$533 million of total plan expense
59% of total plan expense
Obesity related Diabetes Coronary artery disease Hypertension Musculoskeletal disorders Digestive disorders
High cost specialty drugs required Rheumatoid arthritis Multiple sclerosisMay 9, 2013 33
Legislative Update - COVA Care
Plan Design Recommendations Increase the Emergency Room Co-pay
Change Establish a Retail Maintenance Network
Item Plan Design Change Savings Status
1Emergency Room -co-pay
Increase co-pay from $125 to $150
$0.9 million
Adopted
2
Mandatory Retail Maintenance Network –No co-pay change
Mandatory Mail/Retail Maintenance Network with 90 day Retail co-pay equal to 2 times the 30 day retail
$10.4 million
Rejected
May 9, 201334
Year End Balances
Health Insurance Fund
2009 2010 2011 2012 2013$0
$40,000,000
$80,000,000
$120,000,000
$160,000,000
$200,000,000
$240,000,000
Health Insurance Fund Year End Balances
FY 2009 - 2013
FY 2009 – $228.4 million at year end FY 2012 – down 70 percent to $69.4
million FY 2013 – projected at $6.3 million
May 9, 201335
HIF Line of Credit Contingency Reserve – covered under Line of
Credit $76 million for Active Employees to be included in Line of
Credit Incurred But Not Reported (IBNR) – rebuild over
5 years with unfunded balance included in Line of Credit
$91 million IBNR for Active Employees $17.5 million to be funded the first year $74 million to be included in Line of Credit
Line of Credit – increase to $150 million from $50 million
May 9, 201336
Options
Employee Health Plans COVA Care (PPO) COVA HealthAware (CDHP) COVA HDHP Kaiser Permanente (HMO in NOVA) TRICARE Supplement
May 9, 201337
New Wellness Engine
MyActiveHealth Applies to both COVA Care and COVA
HealthAware Includes a Health Assessment survey
Premium reduction of $17/$34 per month if complete Health Assessment between May 1 and May 24, 2013
Continue premium reduction if complete biometric screenings between August 1 and October 31, 2013
Tracks activity with Web-based portal Disease Management (e.g. Diabetes, COPD, Asthma, CHF) Smoking Weight Management Nutrition Maternity Management Bariatric Surgery Pre-education Physical Activity
Allows employees to customize their portalMay 9, 201338
New CDHP
COVA HealthAware Uses co-insurance rather than co-payments Provides for a Health Reimbursement Arrangement (HRA)
Rewards employees $600 on July 1, 2013 Rewards spouses $600 on July 1, 2013 Rewards employees up to $150 for 3 “do-rights”
1. Annual Exam2. Dental Exam3. Flu Shot4. Tracker utilization of 3 times per month per quarter
Rewards spouses up to $150 for 3 “do-rights”1. Annual Exam2. Dental Exam3. Flu Shot4. Tracker utilization of 3 times per month per quarter
May 9, 201339
Summary Benefits
Plan ComparisonIn-Network Benefits COVA Care COVA HealthAware COVA HDHP
Premium Rewards $17/$34 $17/$34 $0
Deductible $225/$450 $1,500/$3,000 $1,750/$3,500
Out-of-Pocket Maximum $1,500/$3,000 $3,000/$6,000 $5,000/$10,000
OOP – Pharmacy included No Yes Yes
OOP – Dental included No No No
Health Reimbursement Account (HRA) No $600 Employee/
$1,200 Employee & Spouse No
“Do-Rights” No Up to $150/$300 No
Plan Design Generally Co-payments 80%/20% Co-insurance 80%/20% Co-insurance
Wellness & Preventive 100% 100% 100%
Annual Vision Exam No 100% No
Annual Hearing Exam No 100% No
Expanded Dental Yes Yes Yes
Expanded Vision Yes Yes No
Expanded Hearing Yes No No40
41
FY 2014
Premium RewardsMONTHLY PREMIUMS
Employee Only
Employee Plus One
Employee Plus Two Or More
Health Care Plan Reward Earner Employee
Employee or
Spouse
Employee and
Spouse
Employee or
Spouse
Employee and Spouse
COVA Care
Employee Premium $72 $164 $164 $220 $220
Rewards -$17 -$17 -$34 -$17 -$34
Employee Premium with Rewards $55 $147 $130 $203 $186
COVAHealthAware
Employee Premium $26 $78 $78 $93 $93
Rewards -$17 -$17 -$34 -$17 -$34
Employee Premium with Rewards $9 $61 $44 $76
$59
Resources Health Benefits Plan Decision Assistant
www.alexforcova.com
Resources to help employees manage their health www.myactivehealth.com/COVA
Department of Human Resource Management http://www.dhrm.virginia.gov
Annual Compensation Report http://www.dhrm.virginia.gov/reports/AnnualSalaryReport2012.pdf
Annual Health Benefits Report http://www.dhrm.virginia.gov/hbenefits/ohbcommunications/reports/
annualreport2012.pdf Review of State Employee Health Insurance Fund
http://www.apa.virginia.gov/reports/HealthInsuranceFundSR2011.pdf
May 9, 201342
