The Empire Plan is a unique health insurance plan designed especially for public employees in New York State. Empire Plan benefits include inpatient and outpatient hospital coverage, medical/surgical coverage, Centers of Excellence for transplants, infertility and cancer, home care services, equipment and supplies, mental health and substance abuse coverage and prescription drug coverage.
ELIOT SPITZER
GOVERNOR
DEPARTMENT OF CIVIL SERVICE
ALBANY, NEW YORK 12239
www.cs.ny.gov
NANCY G. GROENWEGEN
COMMISSIONER
PA07-10
TO: Participating Agency Health Benefit Administrators
FROM: Robert W. DuBois, Director of the Employee Benefits Division
SUBJECT: Empire Plan Quarterly Experience Report
DATE: June 12, 2007
Enclosed are the First Quarter Empire Plan Experience Report for 2007 and the cover letter to the Chief Executive Officers. This report presents the actual 2006 Empire Plan experience, the projected 2007 Empire Plan experience and the projected 2008 premium rates.
June 12, 2007
Dear Chief Executive Officer:
Attached is the Empire Plan First Quarter Experience Report for 2007. This report presents the actual 2006 Empire Plan experience, the projected 2007 Empire Plan experience, based on claims paid through March 31, 2007, and the projected 2008 premium rates.
For the 2006 Plan Year, the Empire Plan carriers declared a 2006 net dividend of $402.0 million or 8.4% of premium. The dividend will be used to offset future premium increases. For the 2007 Plan Year, the Empire Plan carriers project a net dividend of $204.9 million, 3.9% of premium. This report presents the basis for these projections and future reports will include revisions based on additional claims experience.
The projected 2008 premium rates are presented in Exhibit III and reflect a “best-estimated” net premium increase of 12.5%. A range of the potential 2008 premium rate increase is included for your budget development considerations.
I hope this report is informative. If you have any questions, comments or suggestions, please don’t hesitate to contact me.
Sincerely,
Robert W. DuBois, CEBS
Director
Employee Benefits Division
EMPIRE PLAN EXPERIENCE REPORT
JANUARY - MARCH 2007
Produced for
PARTICIPATING AGENCIES IN THE
NEW YORK STATE
HEALTH INSURANCE PROGRAM
by
the Employee Benefits Division
New York State Department of Civil Service
Nancy G. Groenwegen
President, New York State Civil Service Commission
2006 Empire Plan Experience
Projected 2007 Empire Plan Experience
Projected 2008 Premium Rates
Exhibits
I. 2006 Empire Plan Experience
II. Projected 2007 Empire Plan Experience
III. Projected 2008 PA Premium Rates
IV. Empire Plan PA 5-Tier Group Rates 1999-2008
V. Empire Plan PA 2-Tier Group Rates 1999-2008
NEW YORK STATE HEALTH INSURANCE PROGRAM
PARTICIPATING AGENCY GROUP
EMPIRE PLAN EXPERIENCE REPORT
1st QUARTER REPORT
ACTUAL 2006 EMPIRE PLAN EXPERIENCE
The Empire Plan carriers project a composite dividend of $402.0 million (8.4% of premium), or $305.1 million more than the margin loaded in the 2006 rates. The 2006 annual experience is reported in Exhibit I. An additional, $6.4 million in dividend was declared by Cigna which represents favorable 2006 activity pertaining to the prescription drug contract that terminated effective December 31, 2005. The experience under this contract will continue to be updated until we have accounted for all activity related to claims and pharma revenue incurred/earned by the Program.
The 2006 settlement is based on thirteen months of 2006 paid claim data. The following chart presents the percentage of the incurred claims actually paid as well as observed 2006 trend as compared to the trend assumed during the 2006 rate development:
| % of Actual Paid Claims to Projected Incurred Claims |
Projected 2006 Trend | |||
| 2005 | 2006 | @ Renewal | @ 4th Quarter | |
|---|---|---|---|---|
| Blue Cross | 99.2% | 93.1% | 13.8% | 10.6% |
| United HealthCare | 99.8% | 95.5% | 10.3% | 11.8% |
| GHI | 99.8% | 91.7% | 4.5% | 5.5% |
| Blue Cross Rx | 100.0% | 97.9% | 16.2% | 9.4% |
The 2006 dividend for each carrier as compared to the margin level used in the 2006 premium development is as follows:
| Margin | 2006 Projected Dividend/(Loss) | Increase/(Decrease) | |
|---|---|---|---|
| Blue Cross Hospital | $26,222,000 | $175,973,000 | $149,751,000 |
| United HealthCare | $47,285,000 | $40,487,000 | ($6,798,000) |
| GHI | $2,628,000 | $8,013,000 | $5,385,000 |
| Blue Cross Rx | $20,771,000 | $177,488,000 | $156,717,000 |
| Total | $96,906,000 | $401,961,000 | $305,055,000 |
The large increase in the dividend is primarily attributable to the significant reduction in the claim costs from those amounts projected during the development of the 2006 premium rates for the prescription drug and hospital programs. When the 2006 premium rates were developed in October 2005, the amount of the actual 2005 incurred and paid claims through September was approximately 62% of the 2005 projected incurred claim amounts. Approximately 38% of the incremental dividend is attributable to a lower 2005 claim base as compared to the projected 2005 claim base used in the 2006 premium development. Another 38% of the incremental dividend is attributable to lower actual 2006 trends as compared to the projected trends used in the premium development. The balance of the incremental dividend is attributable to a number of components including lower retention charges and an increase in pharma revenue receipts.
UHC’s modest decrease in dividend is attributable to a moderate increase in the 2006 claims base caused by a higher than projected trend, partially offset by a credit for the Basic Medical Discount Program fee charged to the Program. For GHI, the increase in the dividend projection is primarily attributable to the decrease in their projected 2005 claims based coupled with a modest increase in the 2006 trend.
PROJECTED 2007 EMPIRE PLAN EXPERIENCE
The Empire Plan carriers project a composite dividend of $204.9 million (3.9% of premium), or $71.7 million more than the margin loaded in the 2007 rates. The 2007 annual experience projected by the insurance carriers is reported in Exhibit II.
This projection is based on only three months of 2007 paid claim data. The following chart presents the percentage of the projected incurred claims actually paid as well as the current 2007 trend as compared to the trend assumed during the 2007 premium rate development:
| % of Paid Claims to Projected Incurred Claims |
Projected 2007 Trend | |||
| 2006 | 2007 | @ Final Renewal | @ 1st Quarter | |
|---|---|---|---|---|
| Blue Cross Hospital | 96.7% | 14.4% | 12.9% | 13.5% |
| United HealthCare | 98.0% | 16.2% | 12.6% | 12.4% |
| GHI | 97.0% | 12.5% | 4.0% | 7.6% |
| Blue Cross Rx | 98.0% | 24.4% | 12.0% | 11.3% |
The 2007 projected dividend for each carrier as compared to the margin level used in the 2007 premium development is as follows:
| Margin | 2007 Projected Dividend/(Loss) | Increase/(Decrease) | |
|---|---|---|---|
| Blue Cross Hospital | $34,710,000 | $53,550,000 | $18,840,000 |
| United HealthCare | $49,267,000 | $68,028,000 | $18,761,000 |
| GHI | $2,573,000 | ($4,265,000) | ($6,838,000) |
| Blue Cross Rx | $46,622,000 | $87,543,000 | $40,921,000 |
| Total | $133,172,000 | $204,856,000 | $71,684,000 |
The increase in the dividend projection is primarily attributable to the decrease in the 2006 claims base projected during the development of the 2007 rates for the prescription drug, hospital and medical programs coupled with an increase in the projected pharma revenue for the prescription drug program. For GHI, the decrease in their projected 2007 dividend is primarily attributable to the projected increase in claim costs associated with compliance to Timothy’s Law, which became effective on January 1, 2007. This increase in projected claim costs is reflected in the projected 2007 trend.
2008 PROJECTED PREMIUM RATES
Exhibit III presents the projected 2008 Empire Plan gross and net premium rates assuming the application of $300.0 million in dividend to all payors. In aggregate, the Empire Plan gross premium is projected to increase approximately 11.9% while the net premium is projected to increase approximately 12.5%.
A range of the projected gross and net premium rate increase is also included (9.0% - 15.9%). Carrier rate projections made at this time of the year have been historically conservative with the rates ultimately approved and implemented being significantly less than the projections contained in the First Quarter Reports. Each agency should assess its budgetary environment in using the enclosed projections.
Exhibit IV presents the individual and family rate history for the Core Plus Medical and Psychiatric Enhancements option based on the 5-tier Empire Plan billing rate history in effect since January 1, 1999. Exhibit V presents, for illustrative purposes only, the 2-tier rate history from 1999 to 2008.
2006 EMPIRE PLAN EXPERIENCE
In (000's)
|
BLUE CROSS HOSPITAL | UNITED HEALTHCARE MEDICAL Core | UNITED HEALTHCARE MEDICAL NY Enhancement | UNITED HEALTHCARE MEDICAL PA Enhancement | UNITED HEALTHCARE MEDICAL Combined | GHI MHSA Core | GHI MHSA NY Enhancement | GHI MHSA PA Enhancement | GHI MHSA Combined | BLUE CROSS DRUG | TOTAL | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| (A) Premium (1) | 1,503,384 | 1,412,398 | 187,448 | 174,553 | 1,774,399 | 77,905 | 10,699 | 7,696 | 96,300 | 1,416,135 | 4,790,218 |
| (B) Incurred Claims (2) | 1,228,814 | 1,282,780 | 160,925 | 144,275 | 1,587,980 | 57,946 | 8,597 | 6,266 | 72,809 | 1,170,859 | 4,060,462 |
| (C) Administrative Expense (3) | 98,597 | 123,287 | 11,949 | 10,696 | 145,932 | 12,497 | 1,733 | 1,248 | 15,478 | 67,788 | 327,795 |
| (D) Gain/(Loss) (A-B-C) | 175,973 | 6,331 | 14,574 | 19,582 | 40,487 | 7,462 | 369 | 182 | 8,013 | 177,488 | 401,961 |
(1) Earned Premium - Premium which pays for coverage for the period reported (accrual basis).
(2) Incurred Claims - Represents the cost of covered services provided during the period reported by the insurance company (accrual basis).
(3) Administrative Expenses - All charges by the insurance carrier other than for the payment of claims. Includes carrier’s cost to administer the program, interest charges, and other retention.
Source: Carrier 2006 Annual Statements
2007 PROJECTED EMPIRE PLAN EXPERIENCE
In (000's)
|
EMPIRE BLUE CROSS | UNITED HEALTHCARE MEDICAL Core | UNITED HEALTHCARE MEDICAL NY Enhancement | UNITED HEALTHCARE MEDICAL PA Enhancement | UNITED HEALTHCARE MEDICAL Combined | GHI MHSA Core | GHI MHSA NY Enhancement | GHI MHSA PA Enhancement | GHI MHSA Combined | BLUE CROSS DRUG | TOTAL | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| (A) Premium (1) | 1,600,715 | 1,566,814 | 240,331 | 220,553 | 2,027,698 | 73,668 | 10,508 | 9,150 | 93,326 | 1,472,273 | 5,194,012 |
| (B) Incurred Claims (2) | 1,442,147 | 1,397,775 | 205,790 | 196,737 | 1,800,302 | 64,750 | 9,598 | 6,726 | 81,074 | 1,310,812 | 4,634,335 |
| (C) Administrative Expense (3) | 105,018 | 131,191 | 14,453 | 13,724 | 159,368 | 13,057 | 1,872 | 1,588 | 16,517 | 73,918 | 354,821 |
| (D) Gain/(Loss) (A-B-C) | 53,550 | 37,848 | 20,088 | 10,092 | 68,028 | (4,139) | (962) | 836 | (4,265) | 87,543 | 204,856 |
(1) Earned Premium - Premium which pays for coverage for the period reported (accrual basis).
(2) Incurred Claims - Represents the cost of covered services provided during the period reported by the insurance company (accrual basis).
(3) Administrative Expenses - All charges by the insurance carrier other than for the payment of claims. Includes carrier’s cost to administer the program, interest charges, and other retention.
Source: Carrier 2007 1st Quarter Reports
Includes SEHP
Empire Plan
Participating Agency Premium Rates
Comparison of 2007 and Projected 2008 Rates
CORE ONLY
Plan Prime
|
Gross Rates (1) |
Gross Rates (1) |
Gross Rates (1) |
Net Rates (2) |
Net Rates (2) |
Net Rates (2) | |
|---|---|---|---|---|---|---|
|
Individual Optimistic |
527.60 | 573.12 | 8.6% | 491.95 | 539.00 | 9.6% |
|
Individual Best Estimate |
527.60 | 589.27 | 11.7% | 491.95 | 555.15 | 12.8% |
|
Individual Pessimistic |
527.60 | 604.87 | 14.6% | 491.95 | 570.75 | 16.0% |
|
Family Optimistic |
1,116.82 | 1,213.57 | 8.7% | 1,041.38 | 1,141.05 | 9.6% |
|
Family Best Estimate |
1,116.82 | 1,247.59 | 11.7% | 1,041.38 | 1,175.07 | 12.8% |
|
Family Pessimistic |
1,116.82 | 1,280.49 | 14.7% | 1,041.38 | 1,207.97 | 16.0% |
MediPrime
|
Gross Rates (1) |
Gross Rates (1) |
Gross Rates (1) |
Net Rates (2) |
Net Rates (2) |
Net Rates (2) | |
|---|---|---|---|---|---|---|
|
Individual Optimistic |
346.35 | 380.27 | 9.8% | 316.56 | 349.57 | 10.4% |
|
Individual Best Estimate |
346.35 | 389.25 | 12.4% | 316.56 | 358.55 | 13.3% |
|
Individual Pessimistic |
346.35 | 397.44 | 14.8% | 316.56 | 366.74 | 15.9% |
|
Family - 1 Optimistic |
935.57 | 1,020.72 | 9.1% | 866.00 | 951.61 | 9.9% |
|
Family - 1 Best Estimate |
935.57 | 1,047.58 | 12.0% | 866.00 | 978.47 | 13.0% |
|
Family - 1 Pessimistic |
935.57 | 1,073.04 | 14.7% | 866.00 | 1,003.93 | 15.9% |
|
Family - 2 Optimistic |
754.33 | 827.88 | 9.8% | 690.63 | 762.19 | 10.4% |
|
Family - 2 Best Estimate |
754.33 | 847.56 | 12.4% | 690.63 | 781.87 | 13.2% |
|
Family - 2 Pessimistic |
754.33 | 865.60 | 14.8% | 690.63 | 799.91 | 15.8% |
(1) Represents premiums charged by the carriers.
(2) Represents cost to a participating agency.
(3) Projected Rates
CORE PLUS MEDICAL & PSYCHIATRIC ENHANCEMENTS
Plan Prime
|
Gross Rates (1) |
Gross Rates (1) |
Gross Rates (1) |
Net Rates (2) |
Net Rates (2) |
Net Rates (2) | |
|---|---|---|---|---|---|---|
|
Individual Optimistic |
600.69 | 649.90 | 8.2% | 564.84 | 615.48 | 9.0% |
|
Individual Best Estimate |
600.69 | 670.09 | 11.6% | 564.84 | 633.03 | 12.1% |
|
Individual Pessimistic |
600.69 | 689.73 | 14.8% | 564.84 | 655.31 | 16.0% |
|
Family Optimistic |
1,273.96 | 1,378.58 | 8.2% | 1,198.07 | 1,305.39 | 9.0% |
|
Family Best Estimate |
1,273.96 | 1,421.28 | 11.6% | 1,198.07 | 1,342.34 | 12.0% |
|
Family Pessimistic |
1,273.96 | 1,462.86 | 14.8% | 1,198.07 | 1,389.67 | 16.0% |
MediPrime
|
Gross Rates (1) |
Gross Rates (1) |
Gross Rates (1) |
Net Rates (2) |
Net Rates (2) |
Net Rates (2) | |
|---|---|---|---|---|---|---|
|
Individual Optimistic |
363.02 | 397.82 | 9.6% | 333.18 | 367.04 | 10.2% |
|
Individual Best Estimate |
363.02 | 407.73 | 12.3% | 333.18 | 376.24 | 12.9% |
|
Individual Pessimistic |
363.02 | 416.84 | 14.8% | 333.18 | 386.06 | 15.9% |
|
Family 1 Optimistic |
1,036.30 | 1,126.50 | 8.7% | 966.44 | 1,056.96 | 9.4% |
|
Family 1 Best Estimate |
1,036.30 | 1,158.92 | 11.8% | 966.44 | 1,085.56 | 12.3% |
|
Family 1 Pessimistic |
1,036.30 | 1,189.95 | 14.8% | 966.44 | 1,120.56 | 15.9% |
|
Family 2 Optimistic |
798.65 | 874.43 | 9.5% | 734.81 | 808.53 | 10.0% |
|
Family 2 Best Estimate |
798.65 | 896.56 | 12.3% | 734.81 | 828.77 | 12.8% |
|
Family 2 Pessimistic |
798.65 | 917.05 | 14.8% | 734.81 | 851.15 | 15.8% |
(1) Represents premiums charged by the carriers.
(2) Represents cost to a participating agency.
(3) Projected Rates
EMPIRE PLAN
PA 5 TIER GROUP RATES
1999-2008 Monthly Rates
Core Plus Medical & Psychiatric Enhancements
Individual Planprime
| Year | Gross Rate (1) | % Change | Net Rate (2) | % Change |
|---|---|---|---|---|
| 1999 | 279.56 | 4.4% | 261.18 | 6.1% |
| 2000 | 294.94 | 5.5% | 286.53 | 9.7% |
| 2001 | 325.23 | 10.3% | 314.26 | 9.7% |
| 2002 | 353.81 | 8.8% | 344.66 | 9.7% |
| 2003 | 400.00 | 13.1% | 384.89 | 11.7% |
| 2004 | 448.00 | 12.0% | 438.15 | 13.8% |
| 2005 | 490.41 | 9.5% | 478.49 | 9.2% |
| 2006 | 547.86 | 11.7% | 529.76 | 10.7% |
| 2007 | 600.69 | 9.6% | 564.84 | 6.6% |
| 2008 Projected | 670.09 | 11.6% | 633.03 | 12.1% |
Average Percent Increase
| Gross Rate % Change | Net Rate % Change | |
|---|---|---|
| From Inception of 5 Tier Structure (1996) | 9.2% | 9.6% |
| Most Recent 10 Years | 9.6% | 9.9% |
| Most Recent 5 Years | 10.9% | 10.5% |
Family Planprime
| Year | Gross Rate (1) | % Change | Net Rate (2) | % Change |
|---|---|---|---|---|
| 1999 | 573.33 | 3.9% | 531.89 | 5.6% |
| 2000 | 607.33 | 5.9% | 590.16 | 11.0% |
| 2001 | 673.67 | 10.9% | 651.09 | 10.3% |
| 2002 | 742.98 | 10.3% | 723.97 | 11.2% |
| 2003 | 842.38 | 13.4% | 811.41 | 12.1% |
| 2004 | 945.29 | 12.2% | 924.74 | 14.0% |
| 2005 | 1,038.64 | 9.9% | 1,013.68 | 9.6% |
| 2006 | 1,164.16 | 12.1% | 1,126.19 | 11.1% |
| 2007 | 1,273.96 | 9.4% | 1,198.07 | 6.4% |
| 2008 Projected | 1,421.28 | 11.6% | 1,342.34 | 12.0% |
Average Percent Increase
| Gross Rate % Change | Net Rate % Change | |
|---|---|---|
| From Inception of 5 Tier Structure (1996) | 8.6% | 9.0% |
| Most Recent 10 Years | 10.0% | 10.3% |
| Most Recent 5 Years | 11.0% | 10.6% |
Individual Medprime
| Year | Gross Rate (1) | % Change | Net Rate (2) | % Change |
|---|---|---|---|---|
| 1999 | 186.46 | 11.0% | 175.61 | 16.0% |
| 2000 | 217.94 | 16.9% | 214.25 | 22.0% |
| 2001 | 245.64 | 12.7% | 239.94 | 12.0% |
| 2002 | 259.96 | 5.8% | 253.82 | 5.8% |
| 2003 | 307.02 | 18.1% | 297.50 | 17.2% |
| 2004 | 341.87 | 11.4% | 334.22 | 12.3% |
| 2005 | 340.50 | -0.4% | 331.93 | -0.7% |
| 2006 | 359.35 | 5.5% | 338.88 | 2.1% |
| 2007 | 363.02 | 1.0% | 333.18 | -1.7% |
| 2008 Projected | 407.73 | 12.3% | 376.24 | 12.9% |
Average Percent Increase
| Gross Rate % Change | Net Rate % Change | |
|---|---|---|
| From Inception of 5 Tier Structure (1996) | 5.7% | 6.3% |
| Most Recent 10 Years | 9.4% | 9.8% |
| Most Recent 5 Years | 6.0% | 5.0% |
Family - 1 Medprime
| Year | Gross Rate (1) | % Change | Net Rate (2) | % Change |
|---|---|---|---|---|
| 1999 | 480.95 | 6.2% | 447.05 | 9.1% |
| 2000 | 530.97 | 10.4% | 518.52 | 16.0% |
| 2001 | 595.25 | 12.1% | 577.95 | 11.5% |
| 2002 | 649.14 | 9.1% | 633.13 | 9.5% |
| 2003 | 749.40 | 15.4% | 724.05 | 14.4% |
| 2004 | 839.18 | 12.0% | 820.82 | 13.4% |
| 2005 | 888.71 | 5.9% | 867.09 | 5.6% |
| 2006 | 975.66 | 9.8% | 935.32 | 7.9% |
| 2007 | 1,036.30 |
6.2% |
966.44 | 3.3% |
| 2008 Projected | 1,158.92 | 11.8% | 1085.56 | 12.3% |
Average Percent Increase
| Gross Rate % Change | Net Rate % Change | |
|---|---|---|
| From Inception of 5 Tier Structure (1996) | 7.1% | 7.5% |
| Most Recent 10 Years | 9.9% | 10.3% |
| Most Recent 5 Years | 9.1% | 8.5% |
Family - 2 or More Medprime
| Year | Gross Rate (1) | % Change | Net Rate (2) | % Change |
|---|---|---|---|---|
| 1999 | 387.05 | 10.0% | 360.66 | 14.8% |
| 2000 | 453.22 | 17.1% | 445.51 | 23.5% |
| 2001 | 514.40 | 13.5% | 502.37 | 12.8% |
| 2002 | 555.29 | 7.9% | 542.29 | 7.9% |
| 2003 | 656.42 | 18.2% | 636.67 | 17.4% |
| 2004 | 733.05 | 11.7% | 716.88 | 12.6% |
| 2005 | 738.79 | 0.8% | 720.53 | 0.5% |
| 2006 | 787.16 | 6.5% | 744.45 | 3.3% |
| 2007 | 798.65 | 1.5% | 734.81 | -1.3% |
| 2008 Projected | 896.56 | 12.3% | 828.77 | 12.8% |
Average Percent Increase
| Gross Rate % Change | Net Rate % Change | |
|---|---|---|
| From Inception of 5 Tier Structure (1996) | 5.6% | 6.1% |
| Most Recent 10 Years | 9.9% | 10.4% |
| Most Recent 5 Years | 6.5% | 5.6% |
(1) Represents premiums paid to the carriers.
(2) Represents cost to a participating agency.
EMPIRE PLAN
PA 2 TIER GROUP RATES
1999-2008 Monthly Rates
(For Illustrative Purposes Only)
Core Plus Medical & Psychiatric Enhancement
Individual
| Year | Gross Rate (1) | % Change | Net Rate (2) | % Change |
|---|---|---|---|---|
| 1999 | 239.24 | 5.2% | 222.00 | 8.6% |
| 2000 | 260.67 | 9.0% | 253.98 | 14.4% |
| 2001 | 289.41 | 11.0% | 280.25 | 10.3% |
| 2002 | 313.58 | 8.4% | 305.67 | 9.1% |
| 2003 | 357.44 | 14.0% | 345.36 | 13.0% |
| 2004 | 402.70 | 12.7% | 394.31 | 14.2% |
| 2005 | 433.70 | 7.7% | 423.31 | 7.4% |
| 2006 | 477.33 | 10.1% | 459.25 | 8.5% |
| 2007 | 511.23 | 7.1% | 477.96 | 4.1% |
| 2008 Projected | 570.55 | 11.6% | 536.85 | 12.3% |
Average Percent Increase
| Gross Rate % Change | Net Rate % Change | |
|---|---|---|
| From Inception (1986) | 8.4% | 8.3% |
| Most Recent 10 Years | 9.7% | 10.2% |
| Most Recent 5 Years | 10.0% | 9.3% |
Family
| Year | Gross Rate (1) | % Change | Net Rate (2) | % Change |
|---|---|---|---|---|
| 1999 | 539.14 | 4.8% | 499.75 | 7.8% |
| 2000 | 578.26 | 7.3% | 563.03 | 12.7% |
| 2001 | 640.64 | 10.8% | 619.28 | 10.0% |
| 2002 | 703.61 | 9.8% | 685.83 | 10.7% |
| 2003 | 805.64 | 14.5% | 778.82 | 13.6% |
| 2004 | 899.98 | 11.7% | 881.48 | 13.2% |
| 2005 | 968.40 | 7.6% | 945.11 | 7.2% |
| 2006 | 1,073.28 | 10.8% | 1,034.40 | 9.4% |
| 2007 | 1,158.16 | 7.9% | 1,084.90 | 4.9% |
| 2008 Projected | 1,297.52 | 12.0% | 1,223.14 | 12.7% |
Average Percent Increase
| Gross Rate % Change | Net Rate % Change | |
|---|---|---|
| From Inception (1986) | 8.8% | 8.7% |
| Most Recent 10 Years | 9.7% | 10.2% |
| Most Recent 5 Years | 10.0% | 9.5% |
(1) Represents premiums charged by the carriers.
(2) Represents cost to a participating agency.
First Quarter - 2007
Same-Sex Marriages
Effective May 1, 2007, The New York State Department of Civil Service modified its prior policy with regard to recognition of same-sex marriages. Any same-sex marriage that is legal in the jurisdiction where it was performed is recognized for the purposes of providing spousal benefits eligibility in the New York State Health Insurance Program. Please refer to PA Memorandum #07-08 issued on April 27, 2007 for details. Any questions on this policy change may directed to the Public Employer Liaison Unit.
Medicare Part D Employer Subsidy Update
To date, NYSHIP applied for and received estimated Employer Subsidies covering January through November 2006 and, most recently, the first quarter of 2007 (January - March). The Employer Subsidy for December 2006 has not yet been released pending the completion of the 2006 reconciliation by CMS; by including the December subsidy as a part of the final reconciliation the need to recover any subsidy overpayments will be minimized. The Employer Subsidy for January - March 2007 will be credited to the July 2007 bill. We will continue to distribute subsidy payments as soon as possible following receipt from CMS.
GASB 45 Agency Census Report
In addition to the information previously provided to your agency regarding GASB 45 (PA Memorandum #06-11 and PA Memorandum #06-18), NYSHIP will also provide agency census reports upon request. Since the data included in these reports will be current at the time they are provided, it is important that your agency NYBEAS file is up-to-date, including correctly identifying and coding retirees before requesting census reports. To request a copy of your agency’s census information, please send an e-mail to: Melinda.Beyer@cs.state.ny.us and include your name, agency name & code number, mailing address, phone number and e-mail address.
NYSHIP Representation at Municipal Events
During the next quarter, NYSHIP’s Empire Plan will be represented at the following event:
- The 2007 Annual Conferencesponsored by the NYS Conference of Mayors to be held on June 10-12, 2007, in Saratoga Springs, New York.
If you are planning to attend an event, please stop by the NYSHIP exhibit.
Save the Dates!
The 2007 PA Regional Meeting dates have been scheduled. Please mark your calendars for:
- Tuesday, October 2nd in Saratoga Springs
- Wednesday, October 3rd in Rockland County
- Thursday, October 4th in Long Island
Additional details will be distributed later this summer.
Transmission of Reports Electronically
Many agencies receive the Empire Plan Experience Report via e-mail. If you would like to be added to our distribution list, you may contact us at the address or e-mail below.
CEO & HBA Name and Address Changes
Please be sure to notify EBD of any changes in the names and/or addresses (including e-mail address) of your agency’s CEO or HBA, so that we may keep our mailing lists up-to-date. This updated information should be sent to:
Debbie D’Orazio
Employee Benefits Division
NYS Department of Civil Service
Alfred E. Smith State Office Building
Albany, NY 12239
or E-mail: Deborah.Dorazio@cs.state.ny.us