Department of Civil Service

PA01-12

TO: Participating Agency Health Benefit Administrators
FROM: The Employee Benefits Division
SUBJECT: Empire Plan Quarterly Experience Report
DATE: May 31, 2001

Enclosed are the First Quarter Empire Plan Experience Report for 2001 and the cover letter to the Chief Executive Officers.This report provides actual 2000 experience, projected 2001 experience, and projected premium rates for the 2002 plan year.

Enclosures

May 31, 2001

Dear Chief Executive Officer:

Attached is the Participating Agency First Quarter Report for 2001. This report provides actual 2000 Empire Plan experience, projected 2001 Empire Plan experience based on claims paid through March 31, 2001, and projected premium rates for the 2002 plan year.

The Empire Plan carriers declared a plan year 2000 surplus of $105.0 million or 4.5% of premium. After consideration of the $39.4 million deficit recovery on the Prescription Drug Program and the incremental dividends earned on contracts that terminated in 1998, a net dividend of $70.6 million was earned.

The Empire Plan carriers project a 2001 net dividend of $52.2 million, 2.0% of premium. The report explains the basis for these projections and future reports will include revisions based on additional claims experience.

The projected premium rates for 2002 are included in Exhibit III. The Participating Agency Fourth Quarter 2000 Report, had rate projections reflect increases in the gross and net premiums of approximately 11.9% and 12.6%, respectively. Please note that these projections have been made with only three months of 2001 paid claims data. The rate projections in future reports are expected to be more credible as the 2001 experience matures. Please read the "Keeping You Informed" section of this report for information on our plans to distribute the Participating Agency Benefit Statements.

I hope this report is informative and useful to you. 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
2001 First Quarter
Experience Report

JANUARY - MARCH 2001

Produced for

PARTICIPATING AGENCIES IN THE
NEW YORK STATE
HEALTH INSURANCE PROGRAM

by

the Employee Benefits Division
New York State Department of Civil Service

George C. Sinnott

President, New York State Civil Service Commission

 

Attachment 1 - Transmission of Reports Electronically

Exhibits

I. 2000 Actual Empire Plan Experience

II. 2001 Projected Empire Plan Experience

III. Projected Empire Plan PA 2002 Premium Rates

IV. Empire Plan PA Group Rates 1985-2002

V. Empire Plan PA 5 Tier Group Rates 1995-2002

 

ACTUAL 2000 EMPIRE PLAN EXPERIENCE

The Empire Plan carriers declared a composite surplus of $105.0 million (4.5% of premium), or $46.8 million more than the margin loaded in the 2000 rates. The 2000 annual experience by carrier is reported in Exhibit I.

This higher than anticipated surplus in comparison to the margin load is primarily the blended result of lower projected claims under both the Blue Cross and Cigna components. The primary difference between the actual experience and the experience projected at rate development, for the most part, relates to the 1999 claim base projected at the time the 2000 rates were developed.

Though Cigna declared a $55.8 million surplus, such amount must first be used to offset the 1999 loss of $39.4 million and results in a dividend of $16.4 million. Though a partial loss recovery was envisioned at the time of rate development, the improved claims experience resulted in the complete elimination of the loss and the return of dividend equal to 2.5% of the prescription drug premium. The lower claims experience is attributable to higher than expected utilization and mix savings resulting from the change in the copay amounts that were effective, January 1, 2000. Though these savings benefit the current and future experience, we must note that the trend factor developed by the carrier is 24% and represents the blend of all the factors driving prescription drug costs.

An additional $5.0 million in dividend was earned from terminated contracts whose runout claims was lower than the established reserve at the time of termination. The Prescription Drug Program as well as the Mental Health and Substance Abuse Program were rebid and replaced with new contracts effective, January 1, 1999. In total, a net dividend of $70.6 million (105.0 — 39.4 + 5.0 = 70.6) was earned in Plan Year 2000.

PROJECTED 2001 EMPIRE PLAN EXPERIENCE

The Empire Plan carriers project a composite dividend of $52.2 million (2.0% of premium), or $22.1 million more than the margin loaded in the 2001 rates. The 2001 annual experience projected by the insurance carriers is reported in Exhibit II.

Most of the projected dividend increase is attributable to the Medical Program. There continues to be a shift in claims from basic medical to participating provider, which saves money for the plan and reduces the enrollee 's out-of-pocket expense. In the first quarter of 2001, 74% of the paid claim dollars were made to participating providers compared to 71% for the first quarter of 2000. The projected claim amount also indicates a lower 2001 trend in relation to the 8.9% factor used in the development of the premium rates.

Modest dividends are projected by Empire Blue Cross and Cigna. Please note that the 2001 rates for these components do not contain any margin as the carrier claim projections were viewed to be too conservative. In exchange for the marginless rates, both Empire Blue Cross Blue Shield and Cigna may call additional funds (approximately $46 million) up to 3% of the claim base should claims and retention exceed the premium level. At this point in time, a call is not anticipated as modest dividends are projected.

2002 PROJECTED PREMIUM RATES

Exhibit III presents projected 2002 Empire Plan gross and net premium rates and assumes the application of $69.9 million in dividend to all payors. In the aggregate, the Empire Plan gross premium is projected to increase approximately 11.9% while the net premium is projected to increase to 12.6%.

Historically, the rate projections provided in the Quarterly Report are based on carrier projections. Since the projections made by the carriers for this report were viewed to be excessively conservative, the Department of Civil Service with the advice of Buck Consultants made reasonable adjustments to the carrier projections. As a result, the projected rates in this report reflect a range of 10.4% to 15.8% with a best estimate of 12.6%. Because such projections are based on only three months of 2001 claim data, each agency must assess its level of comfort in using them.

For comparison purposes, Exhibit IV presents the individual and family rate history for the Core Plus Medical and Psychiatric Enhancements option based on the Two Tier Empire Plan rate structure in effect prior to January 1, 1996, while Exhibit V presents the five tier history from 1996 to 2002.

KEEPING YOU INFORMED

Participating Agency Benefit Statements

Empire Plan Benefit Statements will be distributed to Participating Agency enrollees ' homes in June 2001. This statement will enable enrollees to review their official health insurance enrollment record at the Employee Benefits Division and will instruct them to notify their agency Health Benefits Administrator of any necessary additions, changes or deletions to their record. Prior to this distribution, we will send agency Health Benefit Administrators detailed information about this project.

Transmission of Reports Electronically

The Employee Benefits Division has the capability to transmit the Participating Agency Quarterly Experience Report via E-mail. Using a software product called Adobe Acrobat Reader™ , the PA Quarterly Report is converted into a portable document format (PDF). This is a format that can be read by any recipient, if they have Adobe Acrobat Reader installed on their system. Adobe Acrobat Reader™ is available free from Adobe Systems, Inc., at http://www.adobe.com.

There are many advantages to receiving the reports electronically including: reports will be received sooner; there will be less paper to handle; and the reports can be stored electronically and/or a hard copy may be printed.

If you would like to receive the report electronically, please provide your E-mail address by completing the bottom section of Attachment 1 and returning it to the Employee Benefits Division.

NYSHIP Representation at Municipal Events

NYSHIP 's Empire Plan will be represented at the following municipal events:

• The 2001 Training Seminar sponsored by the NYS Association of Personnel and Civil Service Officers on June 3-6, 2001, in Lake Placid, NY.
• The 2001 Annual Meeting sponsored by the NYS Conference of Mayors and Municipal Officials on June 11-12, 2001, in Saratoga Springs, NY.
• The Eastern Region Conference sponsored by the International Personnel Management Association on June 18-20, 2001, in Albany, NY.

Name and Address Changes

Please be sure to notify the Employee Benefits Division of any changes so that we may keep our mailing lists up-to-date. This updated information may be sent to:

Mr. Stephen Kavanaugh
Assistant Director
Employee Benefits Division
NYS Department of Civil Service
State Office Campus, Building #1
Albany, NY 12239

Attachment 1

TRANSMISSION OF REPORTS ELECTRONICALLY

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If you would like to receive the report electronically, please complete this form and return it to:

Mr. Stephen Kavanaugh
Assistant Director
Employee Benefits Division
NYS Department of Civil Service
State Office Campus, Building #1
Albany, NY 12239

Agency Code:

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Exhibit I

2000 EMPIRE PLAN EXPERIENCE
In (000's)

	EMPIRE BLUE CROSS	UnitedHealthcare MEDICAL Core	UnitedHealthcare MEDICAL NY Enhancement	UnitedHealthcare MEDICAL PA Enhancement	UnitedHealthcare MEDICAL Combined	GHI MHSA Core	GHI MHSA NY Enhancement	GHI MHSA PA Enhancement	GHI MHSA Combined	CIGNA	TOTAL
A) Premium (1)	689,560	728,380	118,521	80,847	927,748	58,198	6,576	5,552	70,326	626,613	2,314,247
B) Incurred Claims (2)	638,613	666,576	88,943	64,834	820,353	41,746	6,439	4,608	52,793	557,742	2,069,501
C) Administrative Expense (3)	28,904	70,750	8,933	6,259	85,942	9,752	1,102	930	11,784	13,068	139,698
D) Gain/(Loss) (A-B-C)	22,043	(8,946)	20,645	9,754	21,453	6,700	(965)	14	5,749	55,803	105,048

(1) Earned Premium - Premium that 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: 2000 Annual Experience Statement

Exhibit II

PROJECTED 2001 EMPIRE PLAN EXPERIENCE
In (000's)

	EMPIRE BLUE CROSS	UnitedHealthcare MEDICAL Core	UnitedHealthcare MEDICAL NY Enhancement	UnitedHealthcare MEDICAL PA Enhancement	UnitedHealthcare MEDICAL Combined	GHI MHSA Core	GHI MHSA NY Enhancement	GHI MHSA PA Enhancement	GHI MHSA Combined	CIGNA	TOTAL
A) Premium (1)	756,278	885,926	104,387	82,272	1,072,585	58,746	8,212	5,864	72,822	735,924	2,637,609
B) Incurred Claims (2)	719,575	758,930	94,076	78,705	931,711	46,160	5,622	4,499	56,281	717,325	2,424,892
C) Administrative Expense (3)	36,650	78,538	8,366	6,711	93,615	10,777	1,507	1,075	13,359	16,863	160,487
D) Gain/(Loss) (A-B-C)	53	48,458	1,945	(3,144)	47,259	1,809	1,083	290	3,182	1,736	52,230

(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: 2001 1st Quarter Report

Exhibit III

EMPIRE PLAN
Participating Agency Premium Rates
Comparison of 2001 and Projected 2002 Rates
CORE ONLY

Plan Prime: Individual

	Gross Rates 2001 (1)	Gross Rates 2002 (1)	Gross Rates % Change (1)	Net Rates 2001 (2)	Net Rates 2002 (2)	Net Rates % Change (2)
Optimistic	293.01	319.52	9.0%	283.24	313.57	10.7%
Best Estimate	293.01	325.44	11.1%	283.24	319.49	12.8%
Pessimistic	293.01	334.59	14.2%	283.24	328.64	16.0%

Plan Prime: Famly

	Gross Rates 2001 (1)	Gross Rates 2002 (1)	Gross Rates % Change (1)	Net Rates 2001 (2)	Net Rates 2002 (2)	Net Rates % Change (2)
Optimistic	608.59	666.92	9.6%	588.51	654.30	11.2%
Best Estimate	608.59	679.34	11.6%	588.51	666.72	13.3%
Pessimistic	608.59	698.35	14.7%	588.51	685.73	16.5%

MediPrime: Individual

	Gross Rates 2001 (1)	Gross Rates 2002 (1)	Gross Rates % Change (1)	Net Rates 2001 (2)	Net Rates 2002 (2)	Net Rates % Change (2)
Optimistic	236.42	253.47	7.2%	230.99	247.80	7.3%
Best Estimate	236.42	256.49	8.5%	230.99	250.82	8.6%
Pessimistic	236.42	265.44	12.3%	230.99	259.77	12.5%

MediPrime: Family 1

	Gross Rates 2001 (1)	Gross Rates 2002 (1)	Gross Rates % Change (1)	Net Rates 2001 (2)	Net Rates 2002 (2)	Net Rates % Change (2)
Optimistic	553.16	601.92	8.8%	537.43	589.56	9.7%
Best Estimate	553.16	611.43	10.5%	537.43	599.07	11.5%
Pessimistic	553.16	630.26	13.9%	537.43	617.90	15.0%

MediPrime: Family 2

	Gross Rates 2001 (1)	Gross Rates 2002 (1)	Gross Rates % Change (1)	Net Rates 2001 (2)	Net Rates 2002 (2)	Net Rates % Change (2)
Optimistic	495.31	534.72	8.0%	483.91	522.65	8.0%
Best Estimate	495.31	541.35	9.3%	483.91	529.28	9.4%
Pessimistic	495.31	559.98	13.1%	483.91	547.91	13.2%

(1) Represents premiums charged by the carriers.

(2) Represents costs charged to participating agencies.

Exhibit III

EMPIRE PLAN
Participating Agency Premium Rates
Comparison of 2001 and Projected 2002 Rates
CORE PLUS MEDICAL ENHANCEMENT

Plan Prime: Individual

	Gross Rates 2001 (1)	Gross Rates 2002 (1)	Gross Rates % Change (1)	Net Rates 2001 (2)	Net Rates 2002 (2)	Net Rates % Change (2)
Optimistic	323.21	353.86	9.5%	312.44	344.07	10.1%
Best Estimate	323.21	360.95	11.7%	312.44	351.16	12.4%
Pessimistic	323.21	370.73	14.7%	312.44	360.94	15.5%

Plan Prime: Famly

	Gross Rates 2001 (1)	Gross Rates 2002 (1)	Gross Rates % Change (1)	Net Rates 2001 (2)	Net Rates 2002 (2)	Net Rates % Change (2)
Optimistic	668.99	736.22	10.0%	646.91	715.93	10.7%
Best Estimate	668.99	751.00	12.3%	646.91	730.71	13.0%
Pessimistic	668.99	771.29	15.3%	646.91	751.00	16.1%

MediPrime: Individual

	Gross Rates 2001 (1)	Gross Rates 2002 (1)	Gross Rates % Change (1)	Net Rates 2001 (2)	Net Rates 2002 (2)	Net Rates % Change (2)
Optimistic	245.51	264.29	7.6%	239.82	257.60	7.4%
Best Estimate	245.51	267.68	9.0%	239.82	260.99	8.8%
Pessimistic	245.51	276.83	12.8%	239.82	270.14	12.6%

MediPrime: Family 1

	Gross Rates 2001 (1)	Gross Rates 2002 (1)	Gross Rates % Change (1)	Net Rates 2001 (2)	Net Rates 2002 (2)	Net Rates % Change (2)
Optimistic	592.45	647.70	9.3%	575.44	630.49	9.6%
Best Estimate	592.45	658.77	11.2%	575.44	641.56	11.5%
Pessimistic	592.45	678.44	14.5%	575.44	661.23	14.9%

MediPrime: Family 2

	Gross Rates 2001 (1)	Gross Rates 2002 (1)	Gross Rates % Change (1)	Net Rates 2001 (2)	Net Rates 2002 (2)	Net Rates % Change (2)
Optimistic	513.49	556.97	8.5%	501.56	542.89	8.2%
Best Estimate	513.49	564.36	9.9%	501.56	550.28	9.7%
Pessimistic	513.49	583.40	13.6%	501.56	569.32	13.5%

(1) Represents premiums charged by the carriers.

(2) Represents costs charged to participating agencies.

Exhibit III

EMPIRE PLAN
Participating Agency Premium Rates
Comparison of 2001 and Projected 2002 Rates
CORE PLUS MEDICAL & PSYCHIATRIC ENHANCEMENTS

Plan Prime: Individual

	Gross Rates 2001 (1)	Gross Rates 2002 (1)	Gross Rates % Change (1)	Net Rates 2001 (2)	Net Rates 2002 (2)	Net Rates % Change (2)
Optimistic	325.23	355.53	9.3%	314.26	345.74	10.0%
Best Estimate	325.23	362.71	11.5%	314.26	352.92	12.3%
Pessimistic	325.23	372.49	14.5%	314.26	362.70	15.4%

Plan Prime: Famly

	Gross Rates 2001 (1)	Gross Rates 2002 (1)	Gross Rates % Change (1)	Net Rates 2001 (2)	Net Rates 2002 (2)	Net Rates % Change (2)
Optimistic	673.67	740.10	9.9%	651.09	719.80	10.6%
Best Estimate	673.67	755.08	12.1%	651.09	734.78	12.9%
Pessimistic	673.67	775.37	15.1%	651.09	755.07	16.0%

MediPrime: Individual

	Gross Rates 2001 (1)	Gross Rates 2002 (1)	Gross Rates % Change (1)	Net Rates 2001 (2)	Net Rates 2002 (2)	Net Rates % Change (2)
Optimistic	245.64	264.45	7.7%	239.94	257.76	7.4%
Best Estimate	245.64	267.85	9.0%	239.94	261.16	8.8%
Pessimistic	245.64	277.00	12.8%	239.94	270.13	12.7%

MediPrime: Family 1

	Gross Rates 2001 (1)	Gross Rates 2002 (1)	Gross Rates % Change (1)	Net Rates 2001 (2)	Net Rates 2002 (2)	Net Rates % Change (2)
Optimistic	595.25	650.07	9.2%	577.95	632.86	9.5%
Best Estimate	595.25	661.27	11.1%	577.95	644.06	11.4%
Pessimistic	595.25	680.94	14.4%	577.95	663.73	14.8%

MediPrime: Family 2

	Gross Rates 2001 (1)	Gross Rates 2002 (1)	Gross Rates % Change (1)	Net Rates 2001 (2)	Net Rates 2002 (2)	Net Rates % Change (2)
Optimistic	514.40	557.84	8.4%	502.37	543.76	8.2%
Best Estimate	514.40	565.27	9.9%	502.37	551.19	9.7%
Pessimistic	514.40	584.31	13.6%	502.37	570.23	13.5%

 

(1) Represents premiums charged by the carriers.

(2) Represents costs charged to participating agencies.

Exhibit IV

EMPIRE PLAN
PA GROUP RATES
1985 - 2002 Monthly Rates

Core plus Med. & Psych. Enh. - Individual

	Gross Rate	Gross Rate % Change	Net Rates	Net Rates % Change
1985*	95.71		92.85
1986	91.97	-3.9%	91.49	-1.5%
1987	103.14	12.1%	101.65	11.1%
1988 (1)	142.01	37.7%	141.52	39.2%
1989	168.72	18.8%	168.05	18.7%
1990 (2)	179.50	6.4%	167.09	-0.6%
1991 (3)	202.09	12.6%	185.09	10.8%
1992	198.85	-1.6%	181.81	-1.8%
1993	214.30	7.8%	194.64	7.1%
1994	213.83	-0.2%	197.39	1.4%
1995	214.70	0.4%	193.54	-2.0%
1996 (4)	219.20	2.1%	192.27	-0.7%
1997	219.87	0.3%	198.37	3.2%
1998	227.35	3.4%	204.38	3.0%
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 (Projected)	325.03	12.3%	316.52	12.9%

Average Percent Increase

	Gross Rate % Change	Net Rate % Change
From Inception	7.8%	7.9%
Most Recent 10 Years	5.1%	5.8%
Most Recent 5 Years	8.2%	9.9%

Core plus Med. & Psych. Enh. - Family

	Gross Rate	Gross Rate % Change	Net Rates	Net Rates % Change
1985*	203.97		197.57
1986	195.31	-4.2%	194.30	-1.7%
1987	222.39	13.9%	219.20	12.8%
1988 (1)	324.13	45.7%	323.06	47.4%
1989	383.42	18.3%	381.95	18.2%
1990 (2)	403.75	5.3%	380.15	-0.5%
1991 (3)	464.39	15.0%	417.36	9.8%
1992	445.64	-4.0%	407.76	-2.3%
1993	479.37	7.6%	426.35	4.6%
1994	484.69	1.1%	446.94	4.8%
1995	486.99	0.5%	440.35	-1.5%
1996 (4)	491.07	0.8%	428.27	-2.7%
1997	495.81	1.0%	447.22	4.4%
1998	514.28	3.7%	463.62	3.7%
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 (Projected)	715.97	11.8%	696.92	12.5%

Average Percent Increase

	Gross Rate % Change	Net Rate % Change
From Inception	8.2%	8.2%
Most Recent 10 Years	4.9%	5.6%
Most Recent 5 Years	7.7%	9.3%

* Statewide Plan Premium Rates

(1) 1988 rates represent the effective amounts of the 1/88 and 8/88 rate changes.

(2) No change in effective net rate over 1989.

(3) Represents rates effective 1/1/91 - 6/30/91

(4) Represents 2 tier Empire Plan Rates; 5 tier rate schedule effective 1/1/96

Exhibit V

EMPIRE PLAN
PA 5 TIER GROUP RATES
1995 - 2002 Monthly Rates

Core plus Med. & Psych. Enh.

Individual Planprime

	Gross Rate (1)	Gross Rates % Change	Net Rates (2)	Net Rate % Change
1995	214.70		193.54
1996 (3)	234.59	9.3%	207.66	7.3%
1997	261.80	11.6%	240.22	15.7%
1998	267.89	2.3%	246.07	2.4%
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 (Projected)	362.71	11.5%	352.92	12.3%

Average Percent Increase

	Gross Rates % Change	Net Rate % Change
From Inception of 5 Tier Structure	7.8%	9.0%

Family Planprime

	Gross Rate (1)	Gross Rates % Change	Net Rates (2)	Net Rate % Change
1995	486.99		440.35
1996 (3)	521.96	7.2%	459.16	4.3%
1997	537.96	3.1%	489.22	6.5%
1998	552.00	2.6%	503.78	3.0%
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 (Projected)	755.08 739.39	12.1%	734.78	12.9%

Average Percent Increase

	Gross Rates % Change	Net Rate % Change
From Inception of 5 Tier Structure	6.5%	7.6%

Individual Medprime

	Gross Rate (1)	Gross Rates % Change	Net Rates (2)	Net Rate % Change
1995	214.70		193.54
1996 (3)	158.65	-26.1%	131.72	-31.9%
1997	150.53	-5.1%	129.28	-1.9%
1998	167.91	11.5%	151.34	17.1%
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 (Projected)	267.85	9.0%	261.16	8.8%

Average Percent Increase

	Gross Rates % Change	Net Rate % Change
From Inception of 5 Tier Structure	4.3%	6.0%

Family - 1 Medprime

	Gross Rate (1)	Gross Rates % Change	Net Rates (2)	Net Rate % Change
1995	486.99		440.35
1996 (3)	446.03	-8.4%	383.23	-13.0%
1997	427.23	-4.2%	378.82	-1.2%
1998	452.73	6.0%	409.76	8.2%
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 (Projected)	661.27	11.1%	644.06	11.4%

Average Percent Increase

	Gross Rates % Change	Net Rate % Change
From Inception of 5 Tier Structure	4.7%	6.0%

Family - 2 or More Medprime

	Gross Rate (1)	Gross Rates % Change	Net Rates (2)	Net Rate % Change
1995	486.99		440.35
1996 (3)	369.87	-24.0%	307.07	-30.3%
1997	315.24	-14.8%	267.15	-13.0%
1998	351.98	11.7%	314.25	17.6%
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 (Projected)	565.27	9.9%	551.19	9.7%

Average Percent Increase

	Gross Rates % Change	Net Rate % Change
From Inception of 5 Tier Structure	3.3%	5.0%

(1) Represents premiums charged by the carriers.

(2) Represents cost to a participating agency.

(3) Inception of Medprime Rate Structure.

 

Attachment:

pdf exhibits

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