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HomeMy WebLinkAboutCOD-006-19Clarington Corporate Services Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: General Government Committee Date of Meeting: May 6, 2019 Report Number: COD -006-19 Resolution: GG -296-19 File Number: By-law Number: Report Subject: Benefit Increase Cha Recommendation: That Report COD -006-19 be received for information. Municipality of Clarington Page 2 Report COD -006-19 Report Overview Information report responding to the question raised about the types of benefit coverage which is causing increases, and the measures that can be taken to control benefit costs. 1. Background Resolution #GG -187-19 and Current Renewal Increases 1.1 At the Council meeting of April 8, 2019 the General Government resolution #GG -187-19 was approved as follows: That Staff report back on the types of benefit coverage which is causing increases, and what measures can be taken to control the costs, with the Report to be put before the meeting of General Government Committee of May 6, 2019. 1.2 As mentioned at the April 8 meeting, the recent approval of the Health Benefit Program at the January 14, 2019 Council meeting through Resolution #C-019-19, provided for a change in the renewal date to a fall timeframe, with the next renewal details including the ASO consideration expected in September 2019. This report is for general information. 1.3 The questions asked at the GGC meeting related to the general increases which were identified in the renewal report covering February 1, 2018 to January 31, 2019. Attachment #1 is a copy of the table provided by Mosey & Mosey that identified the individual benefit category increases faced in the most recent renewal (totalling 9.8% overall). It also notes the increase of 14.3% that would have been experienced had the Local Authority Services (LAS) option not been explored. 1.4 The renewal increases on the chart in Attachment 1 per category and the percent they represent in the total premium value are as follows: Premium Increase % of Premium Life Insurance 0% 7.0 % Long Term Disability 32.1% 19.8% Extended Health Care 7.6% 50.0% Dental 2.6% 23.2% 1.5 Mosey & Mosey acquired the specific detailed breakdown of the claims history for each of the categories and for each of the Divisions; CUPE Inside and Outside, Non - Affiliated, Firefighters, Library and Museum (Attachment #2). Municipality of Clarington Page 3 Report COD -006-19 2. Potential Increase Factors 2.1 The increases in the benefit categories can vary year over year based on the plan's experience, primarily driven by plan member overall health and wellbeing. 2.2 The LTD category in the renewal values above is the largest increase. The LTD category is one area that generally has low utilization as it includes individuals on extended leaves for significant illnesses. As a result, a modest increase in numbers of employees in the benefit group may trigger an increase in the rates. A rate guarantee was obtained with the market placement of the benefit program in 2016 which protected this category from an increase until 2019, thereby aiding in overall cost containment over those years. The total value of the LTD category in the overall premium is approximately 19.8%. 2.3 The Extended Health Care category includes a number of different services including drugs, hospital care, vision, and paramedical coverages such as physiotherapy and chiropractor. The premium increase was 7.6% on the renewal, and this category represents 50% of the total premium value. The usage of benefits by division of employees is detailed in Attachment 2, represented in both dollar value tables and in bar charts for a further breakdown of paramedical services. In reviewing the data, it is important to note that the bar charts appear to be the same in each division, however there are differences in the representation of dollar values for each group. For instance the highest use paramedical for the CUPE Inside group on page 4 is "massage" valued at $17,565, whereas the highest used paramedical in the Firefighter Group is "physiotherapy" totaling $45,728. The large use in physiotherapy for the Fire group is a result of the arbitration decision to award "unlimited" use of this benefit. Although that appears to be unusual in comparison to the CUPE and Management groups of employees, it is fairly common in the Durham Region Fire sector to see an "unlimited" physiotherapy benefit. 2.4 The dental category increase on the renewal was 2.6%. Attached are two articles that speak to dental fee increases. The Dental Fee Guide Increases chart (Attachment #3) shows a steady adjustment of approximately 2% annually over an eight year period from 2010 to 2018, and then an increase of 4% in 2019. The higher than average expected increase is partly attributed to an industry requirement to accommodate technology and equipment upgrades that were not being covered with the modest annual increases to date. Attachment #4 is an article from Benefits Canada identifying the expected increase of dental fees in 2019 of 4.19%. Municipality of Clarington Resort COD -006-19 3. Cost Containment Measures Page 4 3.1 Mosey & Mosey noted that some control measures might include consortium buying, market placement at reasonable intervals, employee education, prevention and wellness initiatives and plan design. The Municipality has taken advantage of these categories by the actions set out below. 3.2 Local Authority Services (LAS) as a Division of AMO offers a consortium approach to acquiring benefit programs. Mosey & Mosey was engaged through the renewal with Sun Life to provide this advantage to the Municipality which resulted in a reduction in the renewal rate increase that would have been applicable at 14.3% to a renewal rate increase of 9.8%. 3.3 Market placement on a five year basis has been the practice of the Municipality, and it has been noted by Mosey & Mosey that this is a reasonable timeframe to maintain interest in bidding on the Municipal book of business which is considered as a medium value in the market. To go to market on less than a five year cycle is not recommended as it creates an impression of "benefit provider shopping" and providers do not look to invest in a program that jumps from one provider to another on a frequent basis. 3.4 Plan design and modifications are reviewed regularly through negotiations. There is little control in some areas that are subject to interest arbitration awards that achieve parity, however there have been successes in reducing some categories of benefits through negotiations, such as the reduction in the dental units on cleaning/scaling from 16 units to 8 units, mandatory generic drugs, prescription requirement for some paramedicals, reduction of orthotics to one pair annually for one group and changes to the qualifying criteria overall. 3.5 The Municipality supports wellness initiatives through an employee driven wellness group that offered new and interesting opportunities over a number of years. In addition the Municipality has sponsored a number of mental health awareness and certification programs to bring awareness to/and support of mental health. Post -Traumatic Stress Disorder (PTSD) for First Responders and mental health issues have a significant impact on workplace performance, and focus on these initiatives are an investment in employee wellbeing and health with the intention of reducing the demand on benefit programs. 3.6 The Municipality also encourages wellness through the provision of an Employee Assistance Program (EAP) which is recognized as supporting a healthy workforce. Municipality of Clarington Page 5 Resort COD -006-19 4. Concurrence Not Applicable 5. Conclusion The next benefit program renewal will be November 1, 2019. A report to Council outlining the implications of renewing under an Administrative Services Only (ASO) program, or maintaining the funded program, will be brought to Council as soon as the renewal rates are available, which is expected to be September 2019. It is respectfully recommended that Report COD -006-19 be received for information. 6. Strategic Plan Application Not applicable. a �— Submitted by: Marie Marano, H.B. Sc., C.M.O., Director of Corporate Services Reviewed by: Andrew C CAO Allison, B. Comm, LL.B Staff Contact: Kerri McMullen, Compensation & Benefits Supervisor, 905-623-3379, ext., 2206 or kmcmullen@clarington.net There are no interested parties to be notified of Council's decision. Attachment 1 — Mosey & Mosey Report - LAS Renewal Rates Attachment 2 — Mosey & Mosey Report - Historical Extended Health Care and Dental Experience Report Attachment 3 — Mosey & Mosey Report - Dental Fee Guide Increases 2010 — 2019 Attachment 4 — Article Benefits Canada — Ontario dental fees to increase by 4.19% on average in 2019 $WWDFRH01WR5HSRUW&2' Benefit Current Cost Sun Life Proposed Stand Alone Renewal Effective February Cost 1, 2019 Mosey& Mosey Revised Cost Within the LAS Effective February Negotiated Consortium 1, 2019 Monthly Monthly Monthly Volume Premium Premium Adjustment Premium Adjustment Life Insurance 79,168,000 $ 17,143.75 $ 17,143.75 0.0% $ 17,143.75 0.0% Dependent Life Insurance 325 2,389.12 2,389.12 0.0% 2,389.12 0.0% Long Term Disability 1,566,925 41,734.64 59,262.28 42.0% 55,136.15 32.1% Extended Health Care Single 46 6,775.19 7,588.18 12.0% 7,287.44 7.6% Couple 122 37,002.20 41,442.21 12.0% 39,799.91 7.6% Family 218 85,483.27 95,741.43 12.0% 91,947.05 7.6% Dental Single 44 2,845.71 2,988.10 5.0% 2,920.56 2.6% Couple 122 15,861.14 16,654.03 5.0% 16,279.52 2.6% Family 218 44,024.62 46,226.32 5.0% 45,185.44 2.6% TOTAL MONTHLY PREMIUM $ 253,259.64 $ 289,435.42 $ 278,088.94 TOTAL ANNUAL COST -ALL BENEFITS $ 3,039,115.68 $ 3,473,225.04 $ 3,337,067.28 Variance To Current Cost $ 434,109.36 14.3% $ 297,951.60 9.8% Without LAS - Mosey&Mosey Using LAS - Mosey&Mosey $WWDFRHO]WR5HSRUW HISTORICAL EXTENDED HEALTH CARE (EHC) AND DENTAL EXPERIENCE Below is the premium and claims experience for the past two years. Where size allows, this information is provided by group (active and retiree information combined). Any groups that were too small to illustrate on their own are grouped together with others of a similar nature, wherever possible. Therefore, the union and non-union Museum are combined, as well as union and non-union Library. The remaining divisions (i.e., Arena, Council and Contract employees) though not of a similar nature, are simply grouped together due to their size. Further to this illustration, HDF:]Ql9ZSLCV[ffRIlD-NSPZG-A +&[D❑O1EHEk0Cj)aid claims have been broken down by the internal service categories, as shown on the following pages. For the larger groupings in particular, we note that overall paid claims are trending within the expected levels. For the smaller groupings, their claiming variances are less predictable from year to year, which is typical. Total Outside Union ❑ EHC Paramedical Claim Amounts Paid $12,000 Prescription Drugs $132,261.12 64.0% $116,983.9357.4% •', Vision $34,588.30 16.7% $32,882.16 16.1% •' Paramedical $19,558.40 9.5% $26,208.77 12.8% - '' 1111111 All Other Services & Supplies $6,016.22 2.9% $11,591.91 5.7% Footwear $8,969.00 4.3% $9,505.00 4.7% Eye Exams $4,793.00 2.3% $4,213.00 2.1% Hospital $600.00 0.3% $1,620.00 0.8% Emergency Out -of -Canada $0.00 0.0% $887.14 0.4% 9. . I i Average Number of Subscribers Wz�.- 89 Physiotherapist 90 +1.1% Paramedical Claim Amounts Paid $12,000 ■ 2017/2018 $10,000 ■ 2018/2019 $8,000 $6,000 $4,000 $2,000 $0 Massage Physiotherapist Psychologist Naturopath Chiropractor Podiatrist/ Chiropodist Other Osteopath practitioners 2017/2018 $7,470.40 $3,826.00 $580.00 $85.00 $6,856.00 $741.00 $0.00 $0.00 2018/2019 $9,884.07 $5,463.50 $468.00 $2,181.60 $6,972.60 $729.00 $140.00 $370.00 Total Outside Union ❑ Dental Dental Care Procedure Periodontics Total Paid Claims 2017/2018 Percent of Total Paid Claims Total Paid Claims 2018/2019 Percent of Total Paid Claims % Change Year Over Year -4.9% Basic Restorative - :.' . ,, .. 1 • +7.1% 10.3% +60.6% Exams & Diagnostic Major Restorative • Orthodontics -0.5% ServicesSurgical 11 •' .. •1 • ••• :• $166,367.21 •' 1'. -44.6% +33.5% -1.3% +3.7% Endodontics1 Preventative Services• • :• LL, 60,372.381 Average Number of Subscribers $1,848.52 rp +2.6% Average Claims Per Subscriber C4 AQ�� Total Inside Union F EHC Paramedical Claim Amounts Paid $20,000 $18,000 Total Paid Percent of Total Paid Percent of % Change $16,000 Claims Total Paid Claims Total Paid Year Health Service Category 2017/2018 Claims 2018/2019 Claims Over Year Prescription . 1 I -2.3% -. 1 .�: �• $11,618.00 $2,662.50 $660.00 $1,170.00 $12,065.95 $737.00 $575.00 $1,160.00 •. I +21.2% • . • .:. •' -12.3% •• , •'11 Fmmm -46.8% • • : 11 1 •' 1 • 11 I +400.0% All Other ServicesSupplies 1 • 1'. • 1 5 :• •'. +80.2% • 11 :' • 1 •' +4.0% Emergency Out -of -Canada +0.3% Mal EHC Claims Pa $252,885.87 100.10/6 $253,712.87 li"+0.3% Average Number of Subscribers Average Claims Per Subscriber $2,661.96 j J $2,615.60 i -1.7% Paramedical Claim Amounts Paid $20,000 $18,000 ■ 2017/2018 02018/2019 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0 Podiatrist/ Other Massage Physiotherapist Psychologist Naturopath Chiropractor Chiropodist Osteopath Practitioners 2017/2018 $11,618.00 $2,662.50 $660.00 $1,170.00 $12,065.95 $737.00 $575.00 $1,160.00 12018/20191 $17,565.58 $4,798.00 $240.00 $1,745.00 $10,889.95 $805.00 $460.00 $640.00 Total Inside Union 5 Dental ,- Periodontics $49,207.57 725.0%$42,480.55 $45,315.50 32.1% •' Basic Restorative Services $36,031.50 30.1%Exams & Diagnostic $19,428.95 $20,557.10 14.6% Major Restorative $16,077.54 11.2% $14,367.19 10.2% .' Preventative Services $7,161.72 5.0% $7,563.98 5.4% •'. Orthodontics $4,226.50 2.9% $5,905.03 4.2% ' Surgical Services $6,574.78 4.6% $3,698.40 2.6% Endodontics $5,340.60 ihL 3.7% $1,094.00 i 0.8% ' Average Number of Subscribers Average Claims Per Subscriber 95 $1,516.31 97 $1,453.42 +2.1% -4.1% Illustration of Historical Health & Dental Experience and Claims Breakdown Total Non -Affiliated (Non -Union) ❑ EHC 6 ❑❑d 11HVJR❑QD H❑ULiSRIVt❑❑I iC❑C❑❑[ID❑❑❑CSHLff Qa =O IGEFC P V -SD a:R 1111❑❑C❑❑❑EVM11 MCCEH /❑ :D LVFH®J-R❑1NL11LSun Life has confirmed that these amounts were for rehabilitation hospital (substance abuse). Therefore, we have allocated this amount within the All Other Services and Supplies category for 2018/2019 period below. MWF- Total Paid Percent of Total Paid Percent of % Change Claims Total Paid Claims Total Paid Year Health Service Category 2017/2018 Claims 2018/2019 Claims Over Year Prescription .s -5.0% -. . .:,. +33.1% All Other Services & Supplies1 E, • • •' +285.1% 1 -6.5% .. 1 . • +21.9% 1 • 11 .' -16.8% • • 1 1 11 1', 11 1 -52.0% Emergency Out -of -Canada •. •' 1 1 -81.9% Total EHC Claims Paid $314,971. =41,977.24IM100.0% +8.6% Average Number of Subscribers Average ClalflMPer Subscriber $3,350.76 $3,454.32 +3.1% Working towards better solutions.._ Total Non -Affiliated (Non -Union) []Dental Periodontics $51,124.20 30.0% $47,817.07 29.3% ,- ' Basic Restorative Services $42,578.90 25.0% $34,655.35 21.2% : •' , •' Exams & Diagnostic $22,056.05 12.9% $22,689.15 13.9% Major Restorative $12,623.36 7.4% $17,075.82 10.5% Orthodontics $4,811.00 2.8% $15,920.32 9.8% •'. Surgical Services $17,075.85 10.0% $9,556.40 5.9% Endodontics $13,633.95 8.0% $8,128.20 5.0% ' Preventative Services $6,616.00 3.9% $7,235.15 4.4% ' Average Number of Subscribers Average Claims Per Subscriber 94 99 $1,647 A +5.3% Illustration of Historical Health & Dental Experience and Claims Breakdown Total Firefighters C EHC 6 ❑❑d 11HVJ;U H❑W-ISRIVt❑❑I i❑❑❑❑❑IIII❑❑❑❑SHLff Ga =O IGEFC P V-SaG:R ❑❑❑❑1111❑❑❑ M11 MCCEH /E :D LVFH®J-Rd1/❑E1[Sun Life has confirmed that these amounts were for rehabilitation hospital (substance abuse). Therefore, we have allocated this amount within the All Other Services and Supplies category for 2018/2019 period below. Health Service Category Prescription. Total Paid Claims 2017/2018 1 1:.• • Percent of Total Paid Claims Total Paid Claims 2018/2019 Percent of Total Paid Claims % Change Year Over Year +15.3% -. M $45,000 -5.7% All Other Services & • • • • • • :' +292.8% • • : • . 1 -17.2% ■ 2017/2018 o2018/2019 $40,000 $35,000 -11.9% • • 1 11 1 11 +26.8% Emergency • .•. • 1 : 1 -77.6% • • - Total EHC Claims Paid : 11 $264, 1 11 1 MO.0% +294.7% +10.0% Average Number of Subscribers Average Clai er Subscriber $3,886.33�WMEW $4,094.04 +5.3% $50,000 Paramedical Claim Amounts Paid $45,000 ■ 2017/2018 o2018/2019 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 EEL— $15,849.85 Massage Physiotherapist Psychologist Naturopath Chiropractor Podiatrist/ Chiropodist Osteopath Other Practitioners 2017/2018 $16,538.42 $45,728.00 $1,340.00 $2,202.76 $6,229.00 $5,560.00 $550.00 $0.00 2018/2019 $15,849.85 $42,235.00 $400.00 $657.08 $8,548.00 $3,949.00 $610.00 $1,410.00 Total Firefighters ❑ Dental Dental Care Procedure Periodontics11 Total Paid Claims 2017/2018 Percent of Total Paid Claims Total Paid Claims 2018/2019 1 Percent of Total Paid Claims % Change Year Over Year +3.4% Basic Restorative - : • . 1 1 1 +40.5% Exams & Diagnostic 4.9% Services +11.9% SurgicalPreventative 11 • . 11 -34.9% Major- • - 1 1 -40.4% Orthodontics 111 11 :' • 1 :1 1', -14.1% Endodontics1 11 L,120,370.9j� ' • 11 $119,349.96 -70.9% -0.8% Average Number of Subscribers $1,680.99 ]w -5.0% Average Claims Per Subscriber $1,770.'.1 Total Museum (Union & Non -Union) F1 EHC $800 MTotal Paid Percent of Total Paid Percent of % Change Claims Total Paid Claims Total Paid Year Health Service Category 2017/2018 Claims 2018/2019 Claims Over Year Prescription. $300 +397.3% $200 +524.8% $100 .' . I U +3900.0% -• �� Massage Physiotherapist Psychologist Naturopath Chiropractor �� �� •' -63.2% • . .�� �� •'. �� �'. -100.0% 2018/2019 $300.00 $0.00 $0.00 $0.0 $$0.00 $0.00 $0.00 All Other Services & Supplies ++ Emergency Out -of -Canada ++ Mal EHC Claims Pa $1,721.46 $2,327.24 100.0% +35.2% Average Number of Subscribers Average Claims Per Subscriber $860.73] $775.75 -9.9% $800 Paramedical Claim Amounts Paid $700 $600 ■ 2017/2018 0 201 8/201 9 $500 $400 $300 $200 $100 I U $0 __ Massage Physiotherapist Psychologist Naturopath Chiropractor Podiatrist/ Chiropodist Other Osteopath Practitioners 2017/2018 $675.00 $0.00 $0.00 $0.00 $140.00 $0.00 $0.00 $0.00 2018/2019 $300.00 $0.00 $0.00 $0.0 $$0.00 $0.00 $0.00 Working towards better solutions.._ EE 10 Total Museum (Union & Non -Union) ❑ Dental Yz 11 Total Paid Percent of Total Paid Percent of % Change Claims Total Paid Claims Total Paid Year Dental Care Procedure 2017/2018 Claims 2018/2019 Claims Over Year Exams & Diagnostic +79.9% Periodontics -0.8% Preventative Services• 11 • 11 +93.5% RestorativeBasic 11 1 1 11 1 1' . -100.0% Surgical1 11 1 1'. 1 11 1 1'. ++ Endodontics1 11 1 1'. 1 11 1 1'. ++ Major Restorative ++ Orthodontics ++ $1,486.00 $1,042.00 -29.9% Average •- of • •- Average Claims Per Subscriber $74A 1 $347.33 1 1'. ]w -53.3% Yz 11 Total Library (Union & Non -Union) F -I EHC Paramedical Claim Amounts Paid $3,000 ■ 2017/2018 MTotal Paid Percent of Total Paid Percent of % Change Claims Total Paid Claims Total Paid Year Health Service Category 2017/2018 Claims 2018/2019 Claims Over Year Prescription . . • .1 •' 1 12018/20191 +11.7% • : 1 1 +64.6% +2.6% •• 1 1 1 1 1 1 0 • F=+130.8% •1 11 1 •', 1•� 11 .'. I +195.6% All Other Services.. • • • 1 -59.6% • • 11 11 : 1 11 1 1' . -100.0% Emergency Out -of -Canada ++ Mal EHC Claims Pa $38,394.31 -� $41,292.90 100.0% +7.5% Average •- of • •e • 1 Average Claims Per Subscriber $2,020.75 ' I $2,064.65 +2.2% Paramedical Claim Amounts Paid $3,000 ■ 2017/2018 $2,500 132018/2019 $2,000 $1,500 $1,000 $500 $0 Podiatrist/ Other Massage Physiotherapist Psychologist Naturopath Chiropractor Chiropodist Osteopath Practitioners 2017/2018 $2,131.12 $490.00 $0.00 $156.00 $910.00 $0.00 $0.00 $40.00 12018/20191 $2,446.49 $388.00 $0.00 $0.00 $690.00 $100.00 $0.00 $200.00 Working towards better solutions.._ 12 Total Library (Union & Non -Union) ❑ Dental Dental Care Procedure Periodontics• Total Paid Claims 2017/2018 • 1 1 Percent of Total Paid Claims Total Paid Claims 2018/2019 1 Percent of Total Paid Claims 1' % Change Year Over Year +15.6% Basic Restorative -s EMT.T.•1 11 .' +33.0% Surgical Services +357.5% Exams & .• • •1 1 1'. •• 1 -2.8% Major- . - .1 1' : • .1 •' +105.7% Preventative Services 4.5% Orthodontics 1 1 1', 1 11 -77.6% Endodontics• 1 LIL$28,796.201� •' 1 11 $34,655.70 1 1'. -100.0% +20.3% Average •- of • •- • 1 $1,732.79 ]w +14.3% Average Claims Per Subscriber $1,515.zi Yz 13 Total for All Others (Arena, Council, Contract) '1 EHC Paramedical Claim Amounts Paid $1,000 $900 ■ 2017/2018 ■2018/2019 Total Paid Percent of Total Paid Percent of % Change $700 $600 Claims Total Paid Claims Total Paid Year Health Service Category 2017/2018 Claims 2018/2019 Claims Over Year Prescription . 11 • : 1' . . . +1.6% 11 11 1 . 11 • -59.6% -. 11 : • -33.4% .• 1 11 1 1', 11 •' ++ All Other Services & Supplies11 $327.89 $40.00 $0.00 $0.00 $85.00 $60.00 $0.00 $900.00 1 •' • 11 11 • +496.6% • 11 11 +231.9% • ',1 11 1 1'. ',1 11 1 1'. ++ Emergency Out -of -Canada ++ Mal EHC Claims Pa $11,042.06 $9,216.53 100.0% -16.5% Average•- of • •- 1 1' Average Claims Per Subscriber $1,380.26 'I $1,152.07 -16.5% Paramedical Claim Amounts Paid $1,000 $900 ■ 2017/2018 ■2018/2019 $800 $700 $600 $500 $400 $300 $200 $100 $0Podiatrist/ Other Massage Physiotherapist Psychologist Naturopath Chiropractor Chiropodist Osteopath Practitioners 2017/2018 $822.00 $500.00 $360.00 $0.00 $140.00 $0.00 $0.00 $300.00 12018/20191 $327.89 $40.00 $0.00 $0.00 $85.00 $60.00 $0.00 $900.00 Yl 14 Total for All Others (Arena, Council, Contract) -1 Dental ■ Dental Care Procedure Periodontics11 Total Paid Claims 2017/2018 Percent of , Total Paid Claims 1 . ' Total Paid Claims 2018/2019 Percent of Total Paid Claims % Change Year Over Year -20.9% Basic Restorative - 11 •' • .1 -36.5% Exams & Diagnostic -49.9% Endodontics1 11 1 +19.6% Preventative Services -14.4% ServicesSurgical 11 1' . -93.9% Major Restorative. 1 1 11 1 1' . -100.0% Orthodontics L$7,304.94 $3,166.05 ++ -56.7% Average Number of • •- Average Claims Per Subscriber $913.11 Jw $395.76 ]w 1 1' -56.7% Yz 15 LIFE AND LTD CLAIMS EXPERIENCE AND RATING Below are the Life and LTD claims paid for the past 30 months by Sun Life. At the February 1, 2019 renewal, the / UH:F-H-H N9i ❑GiJDEUM mLDEXh -Iiiii ELBiVVH7 7 ❑ =❑❑Q❑ ❑FRP SDL HG LWi6 ❑❑7 LLHVL original proposal of +42%). This negotiated increase was softened on the basis of the Municipality of Clarington being included within the Local Authority Services (LAS) Group Benefits Program. Period PAID CLAIMS Life LTD 2016/2017 (9 months) $0 $0 2017/2018 $0 $70,762 2018/2019 (9 months) $0 $0 Future renewals will be effective each November 1St (starting in 2019). Mosey & Mosey is in the process of L HAN❑ L❑❑A1ViEHEk HC/ $ 6 LRE IDP "ESHL EFH, VREGI-PoILP L HANH SLS?b9 VdW LLH:DEGd 7 ❑ A1:L_FU 1VW 1 RJVV:i upcoming renewal. Once that review has been completed, your projected rate adjustments will be communicated for all benefits. However, we note that although the manual rate did have an impact on the February 1, 2019 renewal rate adjustment for LTD, it ceases to be a factor within the LAS Program (for both Life and LTD), since the overall plan is large enough as a whole to be fully experience -rated. This fact alone will have a significant benefit to your upcoming renewal projections for Life and LTD. 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