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The table below provides a summary of the shortfall in the health plan as well as the impact of the recommended measures above. Estimated Annual Notes/ Comments Item Description Estimated Annual Loss (FY 15/167 $2,300,000 -7 Plus: Medical Inflation Est. Increase FY 2016/17 $1,600,000 Assumes 9% annual increase Estimated Annual Loss – FY 2016/17 $3,900,000 With no Changes Less: Savings from Recommendations Blue Choice Health Plan ($320,000) Est. 2% annual savings Kannact Diabetes Management ($105,000) Assumes 10% cost reduction International Prescription Provider ($110,000) Assumes 25% participation Change Coverage Effective Date ($150,000) Assumes 10% turnover Employee Premium Change ($490,000) —employee Assumes $30/ month increase Employer Premium Change ($1,630,000) Assumes $100/ month increase Subtotal: Cost Savings Measures ($2,805,000) Estimated Annual Loss – FY 2016/17 oo)7 Rather than a projected loss of nearly $4 million, the recommended cost saving measures reduce the anticipated loss to about $1.2 million. Staff plans to address the remaining shortfall with additional measures in fiscal year 2017/18 as detailed below. It should be noted that the plan changes .recommended above do not result in the County losing our grandfathered status for the purposes of the Affordable Care Act. Potential Changes – Effective Fiscal Year 2017/18 Increased Wellness Measures – The County has undertaken several wellness initiatives to reduce healthcare costs such as; the annual Health Fair, wellness screenings, smoking cessation classes Weight Watchers programs, Lunch & Learn programs. Staff will continue to develop additional proactive wellness measures. Some organizations provide various financial incentives (premium discounts, preferred health plans, etc.) for employees that actively participate in wellness programs. If this option were pursued, a multi-year phase-in would likely be needed to allow for adequate employee education and outreach prior to full implementation. 2. Employee Wellness Clinic – Staff along with the insurE establishment of an employee wellness clinic. Additional tirr Request for Proposals to select a provider for such services logistical questions such as the location of such a clinic, recommends scheduling this process for fiscal year 2017/18. next year, then a final decision on whether to move forward would be made at the completion of the RFP process. nce broker has researched the e would be needed to conduct a Additional research, as well as still need to be finalized. Staff If an RFP is conducted during the with an employee wellness clinic 243