Apr 23, 2026 Work Session

[Work Session on April 23, 2026.]

[00:00:08]

WELCOME EVERYBODY TO THE WILSON COUNTY SCHOOL BOARD WORK SESSION. WHERE WE WILL DISCUSS HEALTH INSURANCE. JUST WANT TO MAKE IT, YOU KNOW, KNOWN AT THE BEGINNING THAT THIS IS A PRESENTATION ONLY. THIS IS TO GATHER INFORMATION. NO VOTES OR NO DECISIONS WILL BE MADE TONIGHT. AND WE'RE JUST LOOKING AT ALL OF OUR OPTIONS AS WE GO INTO THIS BUDGET SEASON JUST SO WE KNOW WHAT'S OUT THERE. SO LET'S GET RIGHT INTO IT. I KNOW MR. GREGG ALLMAN, IF YOU WOULD LIKE TO ANNOUNCE THE REPRESENTATIVE, PLEASE. YEAH. THANK YOU VERY MUCH, MR. CHAIRMAN. YEAH. TONIGHT. FIRST OFF, APPRECIATE EVERYBODY MAKING THE EFFORT TO COME TONIGHT. WE HAVE A BUSY. THIS BOARD HAS A BUSY SIX WEEKS, A LOT OF MEETINGS, A LOT GOING ON WITH THE DIRECTOR SEARCH. SO APPRECIATE THE THE OPPORTUNITY MAKING EVERYBODY AVAILABLE FOR ANOTHER NIGHT. BUT THIS IS AN IMPORTANT TOPIC. I JUST WANTED TO KIND OF STRESS FOR THOSE, THOSE WHO MAYBE HAVEN'T BEEN WATCHING OUR REGULAR BOARD MEETINGS, BUT OVER THE LAST THREE YEARS, OUR HEALTH FUND HAS IS CONTINUOUSLY RUN INTO A DEFICIT. AND SO THIS YEAR, PROBABLY BEING THE MOST SIGNIFICANT DEFICIT WE'VE HAD, CURRENTLY RUNNING AT ABOUT $7.3 MILLION. SO AS WE, AS MR. CHAIRMAN, SAID, AS WE AS WE GET INTO OUR BUDGET SEASON, WE NEED TO KIND OF VET OUR OPTIONS. AND ONE OPTION THAT'S ALWAYS BEEN ON THE TABLE. YEAH. OH, SO I MIGHT WANT TO GO BEFORE. OKAY. THANK YOU. YES. OKAY. SORRY ABOUT THAT. YEAH. SO WE JUST I WANTED TO DO I DID SOME DUE DILIGENCE, REACHED OUT TO MISS JESSICA CROSBY FROM THE STATE OF TENNESSEE, WHO'S GOING TO BE PRESENTING TONIGHT ON BEHALF OF THE STATE OF TENNESSEE'S HEALTH PLAN. AGAIN, TONIGHT IS MORE OF A FACT FINDING MISSION FOR US. IS IS IS THERE A WAY TO MAYBE CURB THE DEFICIT WE HAVE RIGHT NOW IN OUR HEALTH INSURANCE, BUT STILL OFFER A COMPETITIVE PLAN AND STILL SOMETHING THAT THE THE EMPLOYEES WOULD, WOULD FEEL GOOD ABOUT IN ALL IS SOMETHING EQUAL AND POTENTIALLY EVEN BETTER WOULD BE IDEAL FOR OUR EMPLOYEES. BUT WE DON'T KNOW THAT YET. SO WHAT WE NEED TO DO FIRST IS KIND OF DO OUR FACT FINDING LOOK A LITTLE BIT TONIGHT. I WANTED TO FOCUS ON PRIMARILY FIRST THE FINANCIAL ASPECTS OF OF THIS PROGRAM AND HOW IT WOULD WORK FROM US FROM A FISCAL STANDPOINT. AND THEN PERHAPS WE COULD GET INTO, IN A SUBSEQUENT MEETING, DEPENDING ON HOW IT GOES TONIGHT AND A SUBSEQUENT MEETING, LOOK AT THE THE ACTUAL BENEFITS COMPARISON BETWEEN THE TWO PLANS AND EDUCATE OURSELVES. IF THIS IS SOMETHING THAT THE BOARD WOULD WANT TO LOOK FURTHER INTO, WE WOULD COME BACK AT A LATER DATE TO KIND OF DECIDE ABOUT THE BENEFITS AND THE COMPARISONS OF THE BENEFITS TO SEE IF, OKAY, MAYBE IT MAKES SENSE ON A BUDGET WISE, BUT DOES IT MAKE SENSE ON A BENEFIT SIDE? SO I THINK THERE'S REALLY TWO COMPONENTS TO TONIGHT, WHICH IS WHAT WE REALLY WANT TO LOOK AT.

AND IF WE DECIDE THAT THE STATE PLAN ISN'T SOMETHING WE WANT TO DO, THEN WE NEED TO, AS A BOARD, REALLY LOOK HARD AT HOW WE'RE GOING TO BUDGET OUR CURRENT HEALTH PLAN AND WHAT ARE WE WILLING TO TO GIVE UP, TO GET ON A, ON A, ON A MORE BALANCED BUDGET FOR NEXT YEAR? SO THERE'S A LOT, A LOT GOING ON. SO AGAIN, I APPRECIATE EVERYBODY'S PATIENCE TONIGHT AND GETTING INTO IT. WE DO HAVE A GUEST SPEAKER TONIGHT. AND THEN ONCE WE'RE DONE, MISS JESSICA CROSBY WILL SPEAK. THANK YOU MA'AM, WE HAVE A NEW POLICY HERE ABOUT SPEAKING WHERE WE SIGN UP. AND I TOTALLY IN THE QUEST TO GET THINGS STARTED. SO WE DO HAVE A THREE MINUTE SPEAKER. SO IF YOU CAN, IF YOU CAN SIT, YOU CAN LEAVE THAT UP THERE. AND IF I WILL, IS THAT MICROPHONE ON? DO WE KNOW IF THAT MIC. OKAY. ALL RIGHT. SO WE DO HAVE ONE SPEAKER TONIGHT. IF MISS CYNTHIA OSBORNE. OKAY. MISS OSBORNE, WHEN YOU WHEN YOU GET UP THERE, I'M GOING TO READ SOMETHING TO YOU REAL QUICK, IF THAT'S OKAY. YES. THAT'S FINE.

OKAY. PLEASE IDENTIFY YOURSELF ON THE SUBJECT OF YOUR PRESENTATION. PLEASE ADDRESS YOUR REMARKS TO THE CHAIR. THE BOARD RESERVES THE RIGHT TO TERMINATE REMARKS THAT VIOLATE BOARD POLICY. 1.404 THE BOARD HAS NO OBLIGATION TO RESPOND TO YOUR REMARKS. AT THE CONCLUSION OF YOUR REMARKS, THE BOARD AND THE DIRECTOR OF SCHOOLS SHALL HAVE A PRIVILEGE TO ASK QUESTIONS OR RESPOND. WE DON'T HAVE THE CLOCK UP THERE. I'M GOING TO START IT HERE, AND I'LL PUT MY HAND UP WHEN THERE'S LIKE, 10S LEFT. IS THAT IS THAT OKAY? OKAY, SO THE FLOOR, I'LL TELL YOU START HOLD ON ME. THIS PHONE GOING, YOU CAN START, MA'AM. OKAY. MY NAME IS CYNTHIA OSBORNE. I AM A TEACHER IN THE COUNTY AND I, I, I APOLOGIZE BECAUSE I DIDN'T REALIZE UNTIL I BASICALLY WALKED IN THAT I WAS ACTUALLY GOING TO SPEAK. SO I'M JUST HERE TO GIVE YOU SOME INFORMATION OF MY EXPERIENCE WITH MARIJUANA. AND I KNOW I WON'T COVER IT ALL IN THE THREE MINUTES, BUT THE MOST RECENT IS LAST MONTH. AND THIS MONTH I SPENT HOURS ON THE PHONE TRYING TO GET A CO-PAY FOR CANCER MEDICINE THAT I HAVE TO TAKE, TRYING TO GET A CO-PAY STRAIGHTENED OUT BECAUSE IT WAS $4,000, ONE MONTH, $3,000 THE OTHER MONTH. AND PART OF THE PROBLEM WITH THAT IS THE CUSTOMER SERVICE. NOBODY SEEMS TO KNOW WHY CALL ONE PERSON. THEY TELL ME TO CALL ANOTHER PERSON. THEY TELL ME TO CALL

[00:05:01]

THAT'S JUST WHAT IT FEELS LIKE TO ME. I DON'T KNOW, I'M NOT THE INSURANCE PROFESSIONAL. I CAN ONLY SPEAK FROM MY EXPERIENCE MANY HOURS ON THE PHONE, A LOT OF TEARS, A LOT OF SLEEPLESS NIGHTS OVER MEDICAL DEBT. THAT'S ALL I HAVE. DO YOU HAVE ANY QUESTIONS FOR ME? I, I SYMPATHIZE, I'M SORRY THAT YOU'RE GOING THROUGH THIS. WE CAN, YOU KNOW, I'M NOT SURE WHAT PART WE MIGHT PLAY IN THIS, BUT I'LL MAKE SURE IF IF THERE'S SOMETHING THAT WE CAN DO TO HELP COMMUNICATE OR HELP THIS, I'LL REACH OUT TO YOU AND FIGURE OUT HOW. WELL, I JUST MORE MORE. SO JUST WANTED YOU TO HAVE AN UNDERSTANDING OF MY EXPERIENCE WITH MARITIME. OKAY.

NOW, THAT'S NOT TO SAY THERE'S NOT BEEN A LOT THAT THEY DID PAY, BUT IT JUST FEELS LIKE A FIGHT EVERY SINGLE TIME. AND TRYING TO GET SOMEBODY TO HELP ME ON THE PHONE IS A JOKE. OKAY? IT'S JUST A JOKE. THANK YOU SO MUCH, MA'AM. THAT WAS THE ONLY SPEAKER WE HAD TO SPEAK. IS THERE ANYBODY ELSE IN THE AUDIENCE THAT WOULD LIKE TO MAKE ANY COMMENTS? IF NOT, WE'RE GOING TO REWIND AND GO BACK AND. MA'AM, THE FLOOR IS YOURS. THANK YOU SO MUCH. AND I'M SO SORRY TO HEAR THAT YOU'RE GOING THROUGH THAT. THAT'S TOUGH. OKAY, SO I'M JESSICA CROSBY, I'M THE OUTREACH DIRECTOR FOR BENEFITS ADMINISTRATION, WHICH IS A DIVISION, OF COURSE, OF FINANCE AND ADMINISTRATION AT THE STATE. AND WE ADMINISTER THE STATE HEALTH PLANS. SOME OF YOU MAY REMEMBER I'VE HAD MEETINGS HERE BEFORE IN MY PAST LIFE, I WAS JESSICA SOUTHERN. I RECENTLY GOT MARRIED, SO I'M NOW JESSICA CROSBY, BUT THE SAME ME. SO I JUST WANTED TO THROW THAT OUT THERE IN CASE THE NAME SOUNDED CONFUSING. BUT I DO REMEMBER SOME OF YOU FROM THOSE PRIOR MEETINGS. SO THANK YOU FOR HAVING ME BACK. SO WE JUST WANTED TO GET INTO A VERY HIGH LEVEL OVERVIEW OF THE STATE PLANS AND HOW THEY WORK, BUT REALLY CENTER THE CONVERSATION AROUND THE FINANCIAL PIECE, RIGHT? BECAUSE THAT'S REALLY WHY I'M HERE, IS TO TAKE A LOOK AT THE FINANCE, THE FINANCIAL PIECE, AND REALLY DETERMINE WHETHER OR NOT WE WANT TO CONTINUE THE CONVERSATION ABOUT THE STATE PLANS. IF YOU GUYS WOULD CONSIDER OUR PLANS AND THEN COME BACK AND MAYBE DO LIKE AN IN-DEPTH OVERVIEW OF OUR PLANS, COVERAGE, EXCLUSIONS, LIMITATIONS, ALL OF THOSE THINGS. SO FOR TONIGHT'S PURPOSES, WE DO HAVE 135 PARTICIPATING LEASE AND CHARTER SCHOOLS ON OUR STATE PLANS. NOW, STATE EMPLOYEES EDUCATION EMPLOYEES ARE AUTOMATICALLY A PART OF PARTNERS FOR. BUT WE GIVE LOCAL EDUCATION AGENCIES AND LOCAL GOVERNMENT AGENCIES THE CHOICE WHETHER OR NOT TO PARTICIPATE IN OUR PLANS. ONE OF THE REQUIREMENTS OF LOCAL EDUCATION AGENCIES, THOUGH, AND WE'LL GET INTO THIS IN JUST A MINUTE, IS WE. THE STATE REQUIRES AN EQUAL OR SUPERIOR EVALUATION OF YOUR CURRENT PLANS EVERY YEAR. SO THE STATE SAYS, YES, YOU CAN GO OUT AND GET WHATEVER PLAN YOU CHOOSE, BUT IT HAS ONE OF YOUR PLANS HAS TO EITHER BE EQUAL OR SUPERIOR TO OURS. SO WE'LL TALK ABOUT THAT A LITTLE BIT. BUT WE HAVE THOSE THOSE THREE PLAN GROUPS, RIGHT? SO WE HAVE STATE AND HIGHER ED IS ONE RISK POOL. THEN WE HAVE LOCAL EDUCATION.

[00:10:03]

SO AS YOU GUYS KNOW, AS YOU EVALUATE HEALTH INSURANCE PLANS, THE BIGGER THE RISK POOL, KIND OF THE BETTER YOU HAVE A LITTLE BIT MORE BUYING POWER WHEN YOU GO TO THE CARRIERS TO NEGOTIATE THINGS. AND THE RISK IS MORE SPREAD OUT AMONG THE POPULATION, THE STATE CAN ACTUALLY GO AND NEGOTIATE BEST IN CLASS BENEFITS BECAUSE NOT ONLY DO WE COVER OVER 120 000 LIVES ON THE PLANS, WE ALSO HAVE 300 000 LIVES ACROSS THE STATE. AND WITH US AS STATE EMPLOYEES BEING ON THESE PLANS TOO. SO OUR STATE PLANS ARE ARE SELF-FUNDED AND THE STATE ASSUMES THE RISK FOR ALL YOUR CLAIMS. SO THE CLAIMS TREND THAT WE'LL TALK ABOUT HERE WHEN WE GET INTO THE FINANCIAL PIECE IS KIND OF OFF YOUR BACKS AND ON TO OURS. WE COLLECT THE PREMIUMS AND THEN WE TURN AROUND AND PAY THE CLAIMS WITH THE PREMIUMS WE COLLECT. AND THE ONE NICE THING IS, YOU KNOW, HEALTH INSURANCE IS JUST VERY EXPENSIVE RIGHT NOW. ANY PLAN, ANYWHERE YOU GO, IT'S JUST EXPENSIVE, RIGHT? IT'S USUALLY THE MOST EXPENSIVE THING BESIDES PAYROLL THAT YOU'RE PAYING FOR OUT OF YOUR BUDGET AND THE HEALTH CARE TRENDS, HIGH COST CLAIMS AND GOP ONES THAT ARE DRIVING THAT COST UP, IT'S JUST EXPENSIVE. BUT THE ONE NICE CAVEAT WITH THE STATE IS THE STABILITY, THE RELIABILITY OF THE PLANS. YES, BUT THE STABILITY YEAR OVER YEAR. SO YOU CAN SEE ON THE SCREEN THERE OUR PREMIUM RATE INCREASES OVER SINCE 2021. AND THOSE ARE IN ORDER FROM 2021 TO 2026. SO THAT'S THE ONE BIG WIN IS THAT, YOU KNOW, YEAR TO YEAR, THERE'S SOME FINANCIAL STABILITY IN THAT. AND THEN ONCE YOU PAY THE PREMIUMS, THAT'S IT. YOU WOULDN'T BE RESPONSIBLE FOR ANYTHING ABOVE AND BEYOND THAT. WE ALSO HAVE A LOCAL EDUCATION INSURANCE COMMITTEE. YOU GUYS MAY BE AWARE OF THIS, BUT THEY VOTE ON PLAN DESIGN CHANGES AND OUR PREMIUM RATE INCREASES EVERY YEAR. SO TYPICALLY IN MAY, WE ANNOUNCE OUR PREMIUM RATE INCREASES FOR THE FOLLOWING CALENDAR YEAR. SO WE'RE ABOUT TO HEAR COMING UP NEXT MONTH, ANNOUNCE OUR PREMIUM RATE INCREASES FOR 2027. THERE'S BEEN A LOT OF RUMORS AND TALK AMONG WHAT WHAT THEY MAY BE, BUT THERE IS ACTUALLY NO INFORMATION YET. IT WILL ALL BE RELEASED AT THAT MAY INSURANCE COMMITTEE MEETING, BECAUSE WE'RE STILL IN THE PROCESS OF ADJUSTING PLAN DESIGNS AND LOOKING AT DIFFERENT SCENARIOS. SO THERE'S REALLY EVERYTHING ANYONE SAYS IS JUST SPECULATION AT THIS POINT. BUT DURING THAT MAY INSURANCE COMMITTEE MEETING, THEY WILL VOTE ON THE INSURANCE PREMIUMS FOR THE FOLLOWING CALENDAR YEAR. SO THEY'RE ALREADY SET. YOU'LL KNOW FOR JANUARY THROUGH DECEMBER OF 2027. SO SPEAKING OF OUR LOCAL EDUCATION INSURANCE COMMITTEE, I PUT THE COMMITTEE MEMBERS HERE SIMPLY BECAUSE YOU MAY NOT KNOW WHO SITS ON OUR INSURANCE COMMITTEE, BUT ALSO SOME OF THESE NAMES WILL BE VERY FAMILIAR TO YOU, ESPECIALLY IN THE LOCAL EDUCATION SPACE. MARY ANN DURSKI IS A HUGE ADVOCATE FOR OUR LOCAL EDUCATION AGENCIES AND OUR POPULATION AND OUR MEMBERS. JENNIFER WHITE THROUGH TSBA, WE HAVE A GREAT RELATIONSHIP WITH TSBA AND EXHIBIT AT THEIR CONFERENCES. AND THEN WE HAVE THREE TEACHER REPRESENTATIVES FROM EAST, MIDDLE AND WEST THAT SIT ON OUR INSURANCE COMMITTEE, ALONG WITH COMMISSIONERS, OUR F AND A COMMISSIONER, COMMISSIONER BRYSON, AND THEN THE COMMERCE AND INSURANCE COMMISSIONER, AS WELL AS THE TREASURER AND COMPTROLLER. THESE ARE PUBLIC MEETINGS, AND THEY'RE OPEN. AND WE LIKE ENCOURAGE OUR MEMBERS OR A REPRESENTATIVE FROM YOUR AGENCY. THEY'RE BOTH IN-PERSON AND VIRTUAL. SO YOU CAN DIAL IN. IT'S OPEN FOR PUBLIC COMMENT, AND WE TAKE MEMBER FEEDBACK VERY SERIOUSLY. WE'RE ON THE PLANS TO OURSELVES, THE SAME PEOPLE THAT ARE DESIGNING OUR PLANS, OUR STATE EMPLOYEES, AND WE'RE ALL ON THE PLANS TOO. AND SO WE WANT TO OFFER THE BEST BENEFITS. WE'RE ALWAYS SURVEYING OUR POPULATION, TAKING POLLS, GETTING FEEDBACK. WHAT DO OUR MEMBERS WANT? WHAT IS THE BEST FOR OUR MEMBERS, AND CONSTANTLY LOOKING AT PLAN DESIGN? AND ARE WE OFFERING GREAT COVERAGE THAT MAKES SENSE FOR PEOPLE IN THEIR LIFESTYLES AND THEIR FAMILIES? OKAY, SO THIS IS NOTHING NEW. YOU GUYS ALREADY KNOW THIS IS WHAT YOU SPEND. WE TOTALED UP THE EMPLOYEE CONTRIBUTIONS, THE EMPLOYER CONTRIBUTIONS FOR A TOTAL SPEND OF 24 MILLION. BUT WE HAVE TO ADD IN THE ADDITIONAL CLAIMS COSTS THERE. SO YOU HAVE THE 25.5 MILLION FOR YOUR PREMIUMS, PLUS WHAT YOU'RE PAYING FOR YOUR CLINICS. AND THEN THE ADDITIONAL CLAIMS COST AT 7.3 MILLION, FOR A TOTAL SPEND OF 32.8 MILLION. I DON'T BELIEVE THAT INCLUDES THE $180,000 BROKER FEE THAT YOU'RE CURRENTLY PAYING. I THINK THAT'S SEPARATE, A SEPARATE FEE. BUT ANYWAY, SOMETHING TO CONSIDER. OBVIOUSLY, THE STATE PLANS WERE ALL STATE EMPLOYEES. WE DON'T GET PAID ANY MORE ANY

[00:15:01]

AND SO WE RAN THE NUMBERS BASED ON HOW MANY PEOPLE YOU CURRENTLY HAVE ENROLLED IN EACH TIER. SO WE DID GET THE NUMBERS FOR HOW MANY PEOPLE ARE ONLY COVERING A CHILD AND ONLY COVERING A SPOUSE, AND THEN HOW MANY PEOPLE ARE ON EMPLOYEE ONLY, AND HOW MANY PEOPLE ARE ON FAMILY. AND BECAUSE WE OFFER FOUR PLAN OPTIONS, TWO CARRIERS IN EACH CARRIER HAS TWO NETWORK OPTIONS. THE KEY THERE IS THE STATE OFFERS A LOT OF CHOICE BECAUSE YOU HAVE A LARGE EMPLOYEE POPULATION, AND NOT EVERY EMPLOYEE IS IN THE SAME HEALTH CONDITION. SOME ARE MANAGING A CHRONIC CONDITION, SOME ARE PLANNING TO GET PREGNANT LIKE EVERYONE'S IN A DIFFERENT SEASON OF LIFE. SO THE KEY THERE IS THAT THE STATE OFFERS A LOT OF CHOICE. SO WITH A LOT OF CHOICE, A LOT OF PLAN OPTIONS FOR YOUR POPULATION COMES A LOT OF DIFFERENT SCENARIOS. AND SO REALLY WHAT WE WANTED TO HIGHLIGHT HERE WAS THE MOST EXPENSIVE WAS A GOOD ONE TO LOOK AT, RIGHT? SO WE RAN IT BASED ON OUR PREMIER PPO PLAN. SO EVERYONE CHOOSING THE PREMIER PPO PLAN, WHICH UNLESS YOU'RE FUNDING THAT TIER AT 100%, NOT EVERYONE'S GOING TO PICK THIS PLAN. BUT IF THEY DID, YOUR TOTAL SPEND WOULD BE 27 MILLION, WHICH WOULD BE A SAVINGS OF 5.8 MILLION. AND THAT'S THE MOST EXPENSIVE PLAN WE OFFER. WE HAVE THREE OTHER PLAN OPTIONS THAT ARE MORE COST EFFECTIVE THAN THIS ONE. SO I RAN IT FOR THE NEXT TIER DOWN, WHICH IS THE STANDARD PPO OPTION. THE TOTAL SPEND WOULD BE 25.1 MILLION, WHICH WOULD BE A TOTAL SAVINGS FOR YOU GUYS OF 7.7 MILLION. I STOP YOU HERE. I'M AFRAID IF I WAIT TILL THE VERY END, I WILL FORGET WHICH SCREEN IT WAS TO ASK THE QUESTION WHERE WE'RE SEEING THE TOTAL WILSON COUNTY SCHOOLS SAVINGS. WAS THERE AN ANALYSIS TO SHOW US HOW MUCH OF THAT COST IS PASSED ON TO THE EMPLOYEE? WELL, THAT'S UP TO YOU. SO IT DEPENDS ON YOUR EMPLOYEE VERSUS EMPLOYER SPLIT. SO IF YOU'RE GIVING THEM BACK THE SAME AMOUNT, THEY'RE CONTRIBUTING NOW, OR IT COULD ALL GO BACK TO, TO YOU GUYS BECAUSE THE STATE GIVES YOU THE FUNDING FLEXIBILITY. SO I KNOW YOU GUYS NOW HAVE. LET'S SEE, YOU'RE DOING $100 A MONTH FOR EMPLOYEE ONLY AND 761 50 A MONTH FOR FAMILY. SO IT COULD POTENTIALLY BE A COST SAVINGS FOR THE EMPLOYEE. IT COULD BE FOR BOTH. THAT'S UP TO YOU GUYS TO DECIDE BECAUSE THE STATE DOESN'T DICTATE THE EMPLOYEE EMPLOYER SPLIT. AS LONG AS THE FULL PREMIUM IS PAID EVERY MONTH, YOU HAVE THAT THAT FLEXIBILITY. I GUESS THAT'S MY QUESTION TO THEIR PREMIUM. SO WE CAN I'LL KEEP WATCHING. I MIGHT HAVE MORE QUESTIONS BECAUSE THE PREMIUM DIFFERENCE IS WHERE I'M ALSO CURIOUS. SO I THINK THE QUESTION IS, IS THE 25 MILLION WHAT WE PAY, NOT THE EMPLOYEES, JUST WHAT WE PAY? NO, IT'S TOTAL EMPLOYEE. AND YOU GUYS IT'S THE TOTAL COST. SO THEN YOU WOULD TAKE THE. SO IF JUST SAY THE PREMIER PPO PLAN. LET'S PULL THAT BACK UP. SO YOUR TOTAL SPEND IS 27 MILLION. NOW DO YOU WANT THE EMPLOYEES TO FUND 5 MILLION OF THAT.

EXCUSE ME, I'M JUST ASKING IN YOUR 25 MILLION, IS IT ALSO INCLUDING WHAT THE EMPLOYEE PAYS OR IS IT JUST WHAT THE 8615 THAT WE PAY? WHERE DID YOU GET THAT FIGURE? RIGHT NOW IT'S THAT IT'S THE 19 MILLION IS THE 8615 TIMES THE 2200 EMPLOYEES GETS YOU TO 19 MILLION. THE EMPLOYEES CURRENTLY CURRENTLY ARE CONTRIBUTING 5 MILLION OF THAT. SO IT'S REALLY A LITTLE LESS THAN 25 MILLION IS WHAT THE TOTAL SPEND IS BUDGETED. RIGHT. BUT RIGHT NOW WE'RE EXCEEDING THAT BY 7.3 MILLION. THEN YOU GOT TO ADD IN THE CLINIC COSTS, RIGHT? THAT'S WHERE WE GOT IT. YES. WHAT WE PAY PLUS WHAT THE EMPLOYEES ARE PAYING. YES. SO THAT'S A COMBINATION. THE 19 MILLION PLUS THE. THERE YOU GO. OKAY. RIGHT. SO YES, IT'S TOTAL SPEND.

[00:20:03]

IT'S REALLY UP TO YOU GUYS TO DETERMINE WHO'S GOING TO CONTRIBUTE TO THAT 27 MILLION.

BUT THAT 27 MILLION IS TOTAL. SO MISS CROSBY, SO IN THAT 27 MILLION, THAT WOULD MEAN THAT WE'D HAVE TO INCREASE IF WE WANTED TO KEEP THE EMPLOYEE CONTRIBUTION THE SAME AT 5.1 MILLION, OR JUST CALL IT $5 MILLION, THAT MEANS WE WOULD HAVE TO INCREASE OUR BUDGET $3 MILLION TO GET TO 22 MILLION. SO WE HAVE THE TOTAL OF 25 MILLION. SO THE 19 MILLION WOULD OBVIOUSLY IS NOT ENOUGH. IT'S NOT ENOUGH IN EITHER PLAN RIGHT AT THIS POINT. SO THAT WOULD BE AT LEAST A FINITE NUMBER, SOMETHING THAT WE COULD AT LEAST TARGET. BECAUSE AGAIN, LIKE YOU SAID, NOT EVERYBODY'S GOING TO PICK THIS MOST EXPENSIVE PLAN, BUT THAT FROM A BUDGETING STANDPOINT FOR THE BOARD, THAT'S WHAT I WANTED TO UNDERSTAND IS THAT IT IS EITHER WAY, WE'RE GOING TO HAVE TO INCREASE FROM 19 MILLION. THE QUESTION IS HOW MUCH MORE FROM 19 MILLION ARE WE GOING TO HAVE TO CONTRIBUTE? AND THEN WE HAVE A ROLE TO PLAY IN TERMS OF HOW MUCH THE EMPLOYEE CONTRIBUTES AND HOW MUCH WE WANT TO CONTINUE TO CONTRIBUTE. SO IF WE WANT TO EITHER MAKE IT, YOU KNOW, THERE'S SOME FLEXIBILITY THERE. WE DON'T HAVE TO GET INTO THOSE OPTIONS YET. BUT YEAH, ABSOLUTELY. AND IT'S REALLY NOT 19 MILLION, RIGHT? IT'S 19 MILLION PLUS THE CLINICS PLUS THE CLAIMS. SO IT'S REALLY ACTUALLY MORE THAN THAT ANYWAY. SO IT WOULD POTENTIALLY BE A COST SAVINGS EITHER WAY YOU LOOK AT IT. BUT THIS IS TOTAL THIS IS THE TOTAL PREMIUMS FOR THE YEAR. AND THE COST SAVINGS CAN AGAIN BE SPLIT HOWEVER YOU SEE FIT. SO WE DID COME UP WITH THE STANDARD PPO AS WELL WITH IN. THAT'S THE SECOND MOST EXPENSIVE PLAN. AND IT WOULD BE A $25.1 MILLION SPEND AND A TOTAL SAVINGS OF 7.7. REAL QUICK QUESTION, MA'AM, IF IT HELPS YOU, IF YOU SEE THE RED LIGHT ON, WE'LL PROBABLY WAIT JUST FOR US. IF YOU'RE LIKE ONE OF US HAS A QUESTION JUST SO WE'RE NOT INTERRUPTING YOU. SO WHEN YOU FIND A SPOT. BUT NO, I WAS GOING TO ASK IN YOUR, IN YOUR, IN, IN YOUR PLAN, THE STATE PLAN SCENARIO, YOU'RE GETTING RID OF OUR CLINICS. WOULD THAT BE TRUE? WELL, THAT'S A POINT OF DISCUSSION. NOT NECESSARILY. SO I DON'T KNOW HOW THE FUNDING STRUCTURE WORKS NOW, OTHER THAN YOU'RE PAYING 1.5 MILLION AND THEN THE EMPLOYEES CAN USE THEM FOR FREE.

CORRECT. OKAY. SO YOU COULD KEEP THEM OPEN. AND I DON'T KNOW WHAT THE FUNDING STRUCTURE WOULD LOOK LIKE IF IT WOULD STILL REQUIRE 1.5 MILLION. IT MAY NOT, BECAUSE THE STATE SAYS YOU CAN LEAVE THE CLINIC OPEN. YOUR EMPLOYEES CAN STILL USE IT, BUT THEY WOULD PAY THE CONVENIENCE CLINIC FEE TO GO IN, UTILIZE THE CLINIC. SO WE HAVE OTHER AGENCIES THAT HAVE DONE THIS IN THE PAST, AND THEY STILL WANT THE CLINIC TO BE FREE TO THEIR EMPLOYEES. AND WE HAVE WE REQUIRE THE THE CLAIMS TO BE BILLED THROUGH THE CARRIER. AND SO THERE'S REALLY NO WAY FOR YOU TO MAKE IT FREE, BUT YOU COULD STILL OPERATE THEM. I DON'T KNOW HOW THAT WOULD CHANGE YOUR OPERATING COST. IF MAYBE THERE'S A PAD IN THERE TO LET THE EMPLOYEES GO FOR FREE OR NOT. SO IT MAY DROP THAT COST, BUT WE HAVE OTHER AGENCIES THAT WILL KIND OF MITIGATE THE GAP FOR THAT. LIKE, I STILL WANT OUR EMPLOYEES TO HAVE ACCESS TO THIS CLINIC FOR FREE. YOU COULD LOOK AT SOMETHING AT LIKE A FSA ACCOUNT. AND OUR LOCAL CDHP PLAN COMES WITH AN HSA ACCOUNT AUTOMATICALLY. AND SO SOMETIMES OUR AGENCIES WILL LOAD SOME MONEY ON TO THOSE CARDS AND THEIR SEED FUNDS, AND ALLOW THE EMPLOYEES TO USE THAT TO PAY FOR CLINIC VISITS OR WHATNOT. JUST WANTED TO MENTION THAT'S GOING TO BE A HUGE EDUCATIONAL CAMPAIGN FOR THE PEOPLE THAT ARE EMPLOYEES OF WILSON COUNTY. I STILL STRUGGLE TO SEE WHERE THE SAVINGS IS. IF IT'S OUR CLAIMS BEING CUT OR DENIED MORE. I'M THAT'S WHAT I'M LOOKING FOR WITH THIS QUESTION. LIKE, WHERE'S THE SAVINGS COMING FROM? IS IT FROM INCREASED PREMIUMS ON THE EMPLOYEES PART? IS IT MORE DENIED CLAIMS BECAUSE THERE'S GOT TO BE SOMETHING THERE THAT'S EXPLAINING THE SAVINGS WELL DENIED CLAIMS. NO, NO, IT'S YOU'RE NOT HAVING TO PAY FOR CLAIMS AT ALL RIGHT NOW. YOU'RE HAVING TO PAY FOR YOUR CLAIMS. SO RIGHT NOW IT'S AT $7.3 MILLION. SO THAT RIGHT THERE WOULD BE ELIMINATED BECAUSE WE PAY ALL THE CLAIMS. MAYBE NOT DENIED CLAIMS, BUT LESS COVERAGE OF CLAIMS. LIKE, WOULD WE STILL HAVE ANY CONTROL OVER WHAT OUR INSURANCE PLAN COVERS? SO YOU'RE NOT LOSING COVERAGE NECESSARILY. AND WE CAN GET INTO SOME OF THE PLAN COMPARISONS AND THE EXCLUSIONS OF THE PLANS. THE I DON'T KNOW IF YOU'VE EVER LOOKED AT LIKE OUR PLAN COMPARISON CHART, BUT WE HAVE VERY COMPREHENSIVE

[00:25:04]

SO LIKE JUST A DIRECT ANSWER. IF WE WANTED TO EXCLUDE OR INCLUDE GLPS, DOES THIS BOARD HAVE THE POWER TO DO THAT? NO THANK YOU. NOW, YOU DO HAVE THE POWER TO RECOMMEND THAT TO US.

AND WE TAKE, LIKE I MENTIONED IN THE BEGINNING, THERE'S A LOCAL EDUCATION INSURANCE COMMITTEE THAT YOU COULD PRESENT THAT TO. AND YES, WE WE HAVE TAKEN MEMBER FEEDBACK THAT HAS BEEN PRESENTED AT THESE COMMITTEE MEETINGS AND ALTERED OUR PLAN DESIGN BASED ON THE FEEDBACK. SO THAT WOULD BE YOUR ROUTE TO, YOU KNOW, HEAR YOUR VOICE OR SPEAK YOUR TRUTH OR ADVOCATE FOR SOMETHING TO BE COVERED. WE, WE DO COVER GLP ONES. AND REALLY THAT THE FINANCIAL BURDEN OF THE GLP ONE FALLS ON US, NOT YOU GUYS ANYMORE. SO SOME OF THOSE THINGS WOULD KIND OF BE OFF YOUR PLATE. BUT IT'S NOT THAT YOU'RE. WILSON COUNTY COULD NOT DICTATE OUR PLAN DESIGN. HOWEVER, WE HAVE STATE EMPLOYEES THAT ARE LOOKING AT THE PLAN DESIGN. AGAIN, WE'RE ALL ON THE PLANS TOO. AND THEY EVALUATE, YOU KNOW, WHAT'S BEST FOR THE POPULATION AND TAKE LOCAL EDUCATION AGENCIES MEMBER FEEDBACK VERY SERIOUSLY. AND SO THE THE BURDEN WOULD FALL ON THE STATE PLAN. HOWEVER, THAT WOULD BE REFLECTED BACK TO OUR EMPLOYEES AND THE PERCENTAGE INCREASE THAT IS RELIABLE EVERY YEAR IN THEIR PREMIUM. RIGHT.

WELL, IT'S THE SAME PREMIUM INCREASE FOR ALL LOCAL EDUCATION AGENCIES. BUT YES, I MEAN, IDEALLY, IF THERE'S HIGH COST CLAIMS AND, YOU KNOW, THE HEALTH CARE TREND IS TRENDING UPWARDS, YES, EVERYBODY FEELS THE BURDEN OF THAT. HOWEVER, YOU'RE GOING TO FEEL IT A LOT LESS BEING ON THE STATE PLANS BECAUSE AS I MENTIONED EARLIER, IT'S MORE SPREAD OUT. SO THERE'S 125,000 COVERED LIVES VERSUS 1800 THAT YOU GUYS HAVE ON YOUR PLANS. SO WHEN YOU HAVE A HIGH COST CLAIM, YOUR PREMIUMS ARE SKYROCKETING, YOUR CLAIMS COSTS ARE SKYROCKETING, WHEREAS THE STATE IS A LITTLE MORE SPREAD OUT AND A LITTLE MORE STABLE BECAUSE WE JUST HAVE MORE PEOPLE, I THINK. YEAH, I THINK THAT'S AN IMPORTANT CONCEPT, RIGHT? BECAUSE IF WE HAVE $10 MILLION IN INCREASES, BUT YOU'RE YOU SAY THE STATE DOES, FOR INSTANCE, DIVIDED BY 125,000. IT'S A MUCH SMALLER NUMBER THAN 10 MILLION DIVIDED BY 2200. AND THAT'S JUST WHAT IT IS. WE'RE HAVING TO PAY EVERY CLAIM. SO WE DON'T GET WE DON'T GET AWAY FROM THAT. AND THAT IS ON A TRAJECTORY RIGHT NOW THAT EVEN OUR OWN FINANCE DIRECTOR SAID IS UNSUSTAINABLE.

I MEAN, WE DON'T HAVE WE DON'T I DON'T KNOW HOW WE I GUESS THIS IS WHERE WE'RE GOING TO GO IS HOW DO WE BUDGET FOR SOMETHING WE HAVE NO CONTROL OF? AND AT LEAST IN I THINK IN THIS SCENARIO, WE'RE SAYING THAT WE CAN WE'RE GOING TO ABDICATE THAT RESPONSIBILITY TO STATE.

WE'RE GOING TO GIVE YOU GUYS THAT STATE THE INSURANCE POOL MUCH LARGER. IT'S 125 PLUS OUR 2200, RIGHT? SO 127,000. SO THAT RISK IS NOW SPREAD OVER MANY MORE PEOPLE. SO THAT THAT PERCENTAGE INCREASE THAT WE'RE GOING TO EXPERIENCE EVERY YEAR IS GOING TO BE SMALLER THAN THAN RIGHT NOW. BECAUSE RIGHT NOW WE'RE JUST PAYING IT AS IT COMES IN AND, AND EVERYTHING THAT WE'VE BEEN PRESENTED FOR, OR AT LEAST SINCE I'VE BEEN ON THE BOARD, NONE OF THOSE PROJECTIONS THAT WE'VE BEEN GIVEN HAVE COME TO FRUITION. IN FACT, WE'RE SEEING THE NUMBERS GO THE OPPOSITE WAY. SO WHATEVER PROJECTED DECREASE WE WERE THOUGHT WE WERE GOING TO GET BY ADDING $50 PER PAYCHECK OR, YOU KNOW, ON, ON BOTH SIDES, IT HASN'T MATERIALIZED IN ANY REAL CLAIMED SAVINGS FOR US SO FAR. WE'VE SEEN IT GO THE OTHER WAY. SO I THINK THAT'S AN IMPORTANT CONCEPT TO KEEP IN MIND. SO TWO THINGS REAL QUICK BEFORE WE MOVE ON. ONE, YES, THE RISK IS SPREAD OUT FOR HIGH COST CLAIMANTS, BUT THE REVERSE IS TRUE TOO. YOU BENEFIT FROM OUR HEALTHY POPULATIONS. IF WE HAVE A, YOU KNOW, A LOW COST CLAIM, YOU KNOW, GROUP, YOU'RE GETTING THE YOU'RE GETTING THE BENEFITS OF THAT AS WELL. AND THEN THE OTHER PIECE IS, I THINK YOU'RE GOING TO BE VERY PLEASED WHEN YOU SEE OUR PLANS AND WHAT THEY COVER AND THE EXCLUSIONS COMPARED TO YOURS. I'VE GONE CROSS-EYED LOOKING AT BOTH AND COMPARING BOTH AND TRYING TO DO OUR DUE DILIGENCE, BECAUSE THE STATE IS JUST HERE TO GIVE YOU INFORMATION, RIGHT? WE'RE NOT BROKERS. WE'RE NOT WORKING ON COMMISSION. IN FACT, I'M OFF THE CLOCK AS OF THREE HOURS AGO. RIGHT? SO, I MEAN, WE JUST WANT TO GIVE YOU GUYS ALL THE INFORMATION YOU CAN ASCERTAIN IN THIS MOMENT TO MAKE THE BEST DECISION YOU CAN FOR YOUR EMPLOYEES. AND AND LIKE I'VE SAID BEFORE, IT'S NOT A DECISION OF, YOU KNOW, A BROKER VERSUS A STATE. IT'S A

[00:30:04]

SO THESE ARE JUST A COUPLE ADDITIONAL SCENARIO CONSIDERATIONS BECAUSE LIKE I MENTIONED, WE HAVE FOUR DIFFERENT PLAN OPTIONS. WE HAVE FOUR TIERS WHERE YOU JUST HAVE TWO. SO WE CAN RUN A MILLION DIFFERENT SCENARIOS. AND I'M HAPPY TO DO SO. SO WE CAN DO THAT. IF YOU'RE LIKE, HEY, WHAT WOULD IT LOOK LIKE IF, YOU KNOW, 75% OF PEOPLE CHOSE THIS PLAN OR THIS MANY PEOPLE CHOSE THAT PLAN OR PEOPLE MIGRATED TIERS EVEN OR, YOU KNOW, WE ALSO HAVE A COST CONTRIBUTION TOOL TO YOUR POINT EARLIER, LIKE HOW DO WE FIGURE OUT THE EMPLOYEE EMPLOYER SPLIT? SO WE HAVE OUR PREMIUM CHARTS IN A TABLE WHERE WE CAN PLUG IN, OKAY, IF, IF WILSON COUNTY WAS WILLING TO CONTRIBUTE THIS MUCH, HOW MUCH WOULD THAT PUT ON THE EMPLOYEES? AND WE CAN PLAY AROUND WITH ALL OF THOSE NUMBERS. AND IT'S NOT WORK ON YOU GUYS. WE WILL TAKE CARE OF ALL THAT AND GET IT ALL PRINTED FOR YOU GUYS AT A AT ANOTHER MEETING. BUT JUST KEEP IN MIND THAT NOT ALL YOUR EMPLOYEES WILL CHOOSE THE SAME PLAN. EVERYBODY'S GOING TO KIND OF MIGRATE TO THE PLAN THAT WORKS FOR THEM AND THEIR FAMILIES. UNLESS YOU'RE PAYING 100% OF THE MOST EXPENSIVE PLAN, PEOPLE ARE GOING TO PICK DIFFERENT PLANS AND ALL PLANS HAVE TO BE OFFERED. NOT ALL PLANS HAVE TO BE FUNDED EQUALLY. SO YOU CAN KINDHOW YOU WANT TO DO THAT. EVERY PLAN CAN HAVE A DIFFERENT FUNDING STRUCTURE, AND THEN EVERY TIER CAN HAVE A DIFFERENT FUNDING STRUCTURE. SO IF YOU WANTED TO CONTRIBUTE MORE TO THE EMPLOYEE ONLY LINE, THEN YOU DO TO THE DEPENDENT SPOUSE OR FAMILY LINE. YOU COULD DO THAT TO, OF COURSE, THE TWO SCENARIOS WE SHOWCASED TONIGHT ARE THE MOST EXPENSIVE PLAN OPTIONS. THERE'S TWO ADDITIONAL CHEAPER PLAN OPTIONS. AND THEN ALSO WE OFFER TWO EXPANDED NETWORK OPTIONS WHICH ARE A LITTLE MORE EXPENSIVE. SO THE, THE EXPANDED NETWORK OPTIONS HAVE A SURCHARGE ON THEM, AND YOU CAN PASS THAT ALONG TO THE EMPLOYEE IF THEY WANTED THOSE EXPANDED NETWORK OPTIONS. SO AGAIN, A MILLION DIFFERENT SCENARIOS WE COULD RUN AND HAPPY TO DO THAT IN THE FUTURE. IF YOU GUYS WANT TO SEE A DIFFERENT SCENARIO. SO NEXT STEPS FROM HERE. IF YOU GUYS ARE INTERESTED IN CONTINUING THE CONVERSATION, WE CAN HAVE SET UP ADDITIONAL MEETINGS WITH WITH STAKEHOLDERS, WITH ADMIN, WITH FINANCE, WITH REBECCA AND HR. HOWEVER, WE WANT TO PROCEED AND, AND DO A LOT OF THE FOOTWORK AND THE BACK WORK. AND THAT WAY WHEN WE COME TO YOU, WE HAVE ALL YOUR QUESTIONS ANSWERED, WE'VE HAD ALL THE ANALYSIS DONE, AND IT'S READY TO PRESENT TO YOU GUYS. OF COURSE WE CAN DO IT IN DEPTH PLAN COMPARISON. WE HAVE A DOCTOR ON STAFF, A PHARMACIST ON STAFF, AND PEOPLE THAT REVIEW OUR PLAN DOCUMENTS LIKE FINE TOOTH COMB, AND THEY CAN ANSWER ANY QUESTIONS THAT YOU COULD POSSIBLY THINK OF. WE DIDN'T EVEN TOUCH ON RETIREE COVERAGE, BUT THAT'S A BIG ONE BECAUSE WE CONSIDER SERVICE FROM OTHER PARTICIPATING LEES WHEN IT COMES TO RETIREES. SO AND RETIREES WILL PROBABLY BE VERY VOCAL ABOUT THIS BECAUSE IT'S IT'S A LITTLE CONCERNING TO SWAP HEALTH INSURANCE PLANS.

SO WE WANT TO MAKE SURE THAT THEY FEEL COMPLETELY CONFIDENT. AND I'M NOT GOING TO SAY, SINCE YOU'RE HERE AND I KNOW YOU'RE ON THE CLOCK, THE RETIRED. THAT'S A QUESTION THAT I MADE SURE THAT MANY PEOPLE ASKED ME WAS, HOW DOES IT AFFECT IMPACT CURRENT RETIREES? AND THEN HOW DOES IT IMPACT PEOPLE THAT ARE ABOUT TO RETIRE? AND I KNOW WE WEREN'T GOING TO GET INTO THE WEEDS, AND I KNOW YOU CAN'T, BUT IS THERE KIND OF A GENERAL ANSWER THAT YOU CAN GIVE ME TO GO BACK TO THAT, TO MY CONSTITUENTS WITH AND SAY, THIS IS WHAT THEY SAID OR. SURE. I MEAN, SO JUST A GENERAL OVERALL ANSWER. THE RETIREES THAT ARE CURRENTLY RETIRED, WHEN YOU COME ONTO THE PLANS WILL BE GRANDFATHERED IN. MOST OF THEM, PROBABLY ALL OF THEM. THE RETIREMENT ELIGIBILITY IS SO SPECIFIC. SO WE WOULD HAVE TO PULL THEIR TCRS RECORDS AND LOOK AT ALL OF THAT. BUT TYPICALLY MOST OF THE EXISTING RETIREES ARE GRANDFATHERED IN FUTURE RETIREES, THEY WOULD HAVE TO MEET OUR ELIGIBILITY CRITERIA. THERE IS ONE PIECE OF OUR CRITERIA THAT WE WAIVE FOR NEW AGENCIES, AND THAT'S THE 1 TO 3 YEARS OF CONTINUOUS COVERAGE REQUIREMENT BECAUSE THEY WE'RE NOT GOING TO PUNISH THEM IF THEY WERE PLANNING TO RETIRE IN THE NEXT 1 TO 3 YEARS, THEY DIDN'T HAVE AN OPPORTUNITY. IF YOU JUST CAME ON, THE STATE PLANS TO HAVE OUR COVERAGE. BUT ONCE THAT THRESHOLD IS MET, THEN THEY WOULD HAVE FUTURE RETIREES, FUTURE FUTURE RETIREES WOULD HAVE TO MEET THAT. BUT YEAH, IT IS IT'S VERY SPECIFIC. BUT AGAIN, WE SHOULD DO A RETIREMENT Q&A BECAUSE THEY WILL COME AND THEY WILL HAVE A LOT OF QUESTIONS. AND WE WANT TO MAKE SURE THAT THEY FEEL CONFIDENT AND THEY GET ALL THEIR QUESTIONS ANSWERED ABOUT RETIREE COVERAGE AND AND ALL OF THAT. ONE OTHER THING TO NOTE.

SO IF SOMEONE DOES NOT MEET OUR CRITERIA, SAY RETIREE AND YOU WANT TO PROVIDE THEM HEALTH INSURANCE AT RETIREMENT, BUT THEY DON'T MEET THE STATE CRITERIA, YOU ARE FREE TO OFFER

[00:35:03]

BUT SOMEONE THAT RETIRES NEXT YEAR MAY NOT BE ELIGIBLE. THAT'S INCORRECT. NO, SORRY IF I WAS CONFUSING. THEY WILL BE ELIGIBLE AS LONG AS THEY MEET OUR CRITERIA. THAT'S WHAT I'M SAYING. THEY MAY NOT BE ELIGIBLE, I GUESS. YES, THEY MAY NOT. IF THEY DON'T MEET OUR CRITERIA, WHICH IS LIKE HIRED PRIOR TO 2015, YOU KNOW, 1 TO 3 YEARS OF CONTINUOUS SERVICE.

THEY HAVE TO HAVE SO MANY SERVICE YEARS. BUT IF THEY DON'T MEET OUR CRITERIA TO BE ON OUR STATE PLANS, AND THIS IS PRE 65 RETIREES, THIS IS ANYWAYS, WE HAVE TO HAVE A WHOLE SESSION ON RETIREMENT. SO THERE'S THERE'S PRE 65 AND THERE'S POST 65. AND WE OFFER BOTH. AND BY THE WAY ANYWAYS WE WON'T GET INTO THAT. BUT OKAY, SO THIS IS ALL PRE 65 RETIREES BUT THEY HAVE TO MEET OUR ELIGIBILITY CRITERIA. YES. SO I GUESS TO YOUR POINT, YOU COULD HAVE SOMEONE RETIRE THAT WOULD NOT BE ELIGIBLE FOR THE STATE PLANS, MAYBE DEPENDING ON THEIR YEARS OF SERVICE WHEN THEY WERE FIRST HIRED, HOW THEIR TCRS IS CODED. BUT IF YOU HAVE THAT PERSON THAT WANTS TO RETIRE AND THEY DO NOT MEET OUR ELIGIBILITY CRITERIA AND YOU MOVE TO THE STATE PLANS, THE STATE SAYS YOU CAN OFFER THEM A STIPEND. YOU CAN OFFER THEM ANOTHER PLAN. EVEN IF YOU HAD A GROUP PLAN FOR THIS BUCKET OF RETIREES THAT YOU HAVE THAT DON'T MEET OUR CRITERIA FOR WHATEVER REASON, YOU'RE FREE TO DO THAT. SO OKAY, NO MORE QUESTIONS ON THAT. SO SPEAKING OF QUESTIONS, WE WE HAVE ANOTHER FOLLOW UP Q&A SESSION.

THERE OBVIOUSLY WILL BE A LOT MORE QUESTIONS THAT COME UP, AND I'M HAPPY TO ANSWER THOSE.

AND WE CAN LOOK AT YOUR PLANS IN DEPTH IF YOU GUYS WANT TO CONTINUE THE CONVERSATION ON THE STATE PLANS AND SEE WHAT BENEFITS WE OFFER. SO I'LL POP MY CONTACT INFORMATION THERE IF YOU HAVE ANY QUESTIONS IN THE MEANTIME. BUT IF YOU LET ME KNOW, I'M HAPPY TO COME BACK AND WE CAN DO AN IN-DEPTH ANALYSIS OF YOUR PLANS VERSUS OURS. JUST REAL QUICK, YOU HAD MENTIONED THAT EQUAL OR SUPERIOR. YES. DID YOU? THAT WASN'T SPOT ON THAT. AND THEN I KNOW OUR FINANCE GURU HAS A.

OKAY. THAT'S RIGHT. OKAY. SO THERE'S A HIDDEN SLIDE. THAT'S WHY WE DIDN'T GET INTO THE WHOLE PLAN DISCUSSION HERE. BUT I'LL I'LL HAVE THESE SLIDES AND WE CAN LOOK AT THEM REAL QUICK.

OKAY. SO EACH YEAR EVERY NON PARTICIPATING LEE IS EVALUATED TO DETERMINE IF AT LEAST ONE OF YOUR HEALTH PLANS IS DEEMED EQUAL OR SUPERIOR TO OURS. THEY LOOK AT THE OVERALL BENEFIT VALUE OF THE PLAN, DESIGN THE DEDUCTIBLES, COPAYS, COINSURANCE, AND OUT-OF-POCKET MAXES IS REALLY WHAT THEY'RE LOOKING AT. SO THE PREMIUMS ARE NOT CONSIDERED IN THIS. THINGS LIKE CLINICS ARE NOT CONSIDERED IN THIS. SO WE GIVE YOU THAT PLUS OR MINUS FIVE THRESHOLD TO ACCOUNT FOR STUFF LIKE THAT. BUT HERE IS THE RESULTS FOR YOUR YOUR CURRENT PLAN. IT CAME IN EQUAL TO OUR PREMIER PPO PLAN. WE GET A COPY OF THE EVALUATION TO SHOW LIKE WHAT WAS COMPARED. YES, IT PROBABLY WENT TO REBECCA PROBABLY HAS IT OKAY. BUT WE DO THIS EVERY YEAR.

[00:40:02]

WE ALSO HAVE A $500 DEDUCTIBLE AND A $1,000 DEDUCTIBLE. AND YOUR BEST PLAN IS 750 AND 1875.

COMPARING THE TWO PLANS THAT WE HAVE TO YOUR TWO PLANS, THAT'S EQUAL TO OURS. SO I'M NOT SURE HOW THAT'S GOING TO BE EQUAL OR BETTER. AND IT ALSO HAS OUR PEOPLE THE ON THAT PLAN, OURS PAID, LIKE YOU SAID, 76, SEVEN, 61, 50 A MONTH, AND THEY'RE GOING TO PAY 1342 FOR FAMILY COVERAGE ON THE PREMIER PLAN. AND THEY'RE GOING TO PAY, WHICH IS NOT AS MUCH, BUT THEY'RE GOING TO PAY 75 A MONTH FOR 12 MONTHS. CORRECT. BECAUSE WE ONLY DO TEN MONTHS. BUT YOU TAKE OUT PREMIUMS FOR 12 MONTHS. CORRECT. YOU CAN TAKE IT OUT OF 10 OR 12. BUT YES, WE REQUIRE IT. 12. BUT YOU CAN SET IT UP IN YOUR PAYROLL SYSTEM. OKAY, SO $75 FOR 12 MONTHS OR IN 1342 FOR A FAMILY AS OPPOSED TO OUR $100 A MONTH AND. 761 SO I DON'T SEE HOW IF WE CHOSE THE BEST PLAN, HOW IT COMPARES TO OURS EQUALLY, I JUST WANTED TO ADD, AND WE HAVE A FREE CLINIC AND A FREE CLINIC THAT WE DON'T CHARGE. I GUESS THE ASSUMPTION IS THAT THAT'S GOING TO CONTINUE BECAUSE WE HAVE A $7.3 MILLION HOLE TO FILL. SO WE'RE EITHER GOING TO HAVE TO DO IT ON THE BACKS OF THE EMPLOYEES, ON THE BACKS OF THE COUNTY COMMISSION, OR SOMEHOW COME UP WITH THAT, OR WE'RE GOING TO HAVE TO FOREGO SOMETHING IN OUR BUDGET IF THAT'S IF THAT'S IMPORTANT. AND I THINK THAT'S THE DECISION THE BOARD'S GOING TO HAVE TO MAKE IS, IS WHAT'S MORE IMPORTANT, BECAUSE WE'VE ALREADY WENT FROM A 0 TO 50. IS IT GOING TO GO 50 TO 100, OR ARE WE GOING TO DO 50 TO 100 PLUS A CO-PAY? AND SO THEN THOSE COMPARISONS WE'RE MAKING TO THE STATE THEN HAVE TO BE WE'RE GOING TO HAVE TO DO THAT COMPARISON. YOU KNOW WHAT I MEAN? LIKE MAYBE IT'S A YEAR FROM NOW. MAYBE WE DECIDE THAT WE'RE GOING TO PUNT THIS UNTIL NEXT YEAR, BUT WE'RE GOING TO HAVE TO COME UP WITH SOME KIND OF A STOPGAP, LIKE, WHAT ARE WE GOING TO DO? AND HOW MUCH ARE WE GOING TO? IS THE IS THE EMPLOYER GOING TO CONTRIBUTE, MEANING THE COUNTY VERSUS THE EMPLOYEE? AND I THINK THAT'S THE CONVERSATION WE NEED TO HAVE. AND I DON'T KNOW WHAT THAT NUMBER IS FOR NEXT YEAR. IS IT 10 MILLION? IS IT 15 MILLION OVER WHAT WE HAVE NOW? I JUST DON'T KNOW. I DON'T THINK ANYBODY KNOWS. SO THIS IS A QUICK GLANCE AT OUR TWO PLANS THAT YOU WERE MENTIONING THE DEDUCTIBLE COMPARISON. AND YOU'RE RIGHT, YOUR DEDUCTIBLES NOW ARE 501,000. AND ON OUR PREMIER PLAN, THE EMPLOYEE ONLY DEDUCTIBLE IS 750 AND THE FAMILY IS 1875. SO IT IS IT IS SLIGHTLY MORE. HOWEVER, YOU GOT TO THINK ABOUT A $7 MILLION COST SAVINGS TO BOTH THE EMPLOYEES. ARE THEY MORE WORRIED ABOUT SAVING MONEY IN THEIR PAYCHECK EVERY MONTH OR PAYING A LITTLE BIT MORE FOR HEALTH CARE? AND SO WE JUST ALL HAVE TO DECIDE, RIGHT, WHEN WE'RE PICKING A PLAN ANYWAY. DO WE WANT TO PAY MORE OUT OF OUR PAYCHECK, OR DO WE WANT TO PAY MORE FOR HEALTH CARE COSTS? AND THERE'S A MILLION DIFFERENT SCENARIOS. WE CAN RUN FOR THIS PART PORTION TOO, BECAUSE. SO YOU'RE SAVING MILLIONS OF DOLLARS IF YOU COME ONTO OUR STATE PLAN. SO YOU CAN TAKE A COUPLE MILLION OF THE SAVINGS AND SUPPLEMENT SEED FUNDS TO $250, SAY, FOR THE EMPLOYEE, ONLY TO SUPPLEMENT THE DIFFERENCE IN DEDUCTIBLES. IF YOU WERE PASSIONATE ABOUT MAKING SURE THAT THE EMPLOYEES KEEP A $500 DEDUCTIBLE, THE DIFFERENCE BETWEEN COINSURANCE BEING TEN AND 15% IS REALLY NOT THAT SIGNIFICANT. I KNOW EVERY DOLLAR COUNTS FOR SURE, BUT I BET THE EMPLOYEES WOULD BE HAPPIER WITH A REDUCTION IN WHAT THEY'RE CONTRIBUTING, OR EVEN KEEPING IT THE SAME, OR NOT HAVING TO GO UP SO MUCH EVEN OUT OF THEIR PAYCHECK. AND THEY MAY BE WILLING, I DON'T KNOW, THEY HAVE TO VOTE TO. THAT'S THE OTHER PIECE OF THIS IS THE EMPLOYEES, THE MAJORITY OF BENEFITS ELIGIBLE EMPLOYEES HAVE TO VOTE ON WHETHER OR NOT

[00:45:04]

SO OUR NEXT QUESTION IS DO YOU HAVE THE FINAL PROJECTIONS OF THE COST INCREASES FOR THE STATE FOR 2021 2026? THE CORRESPONDENCE FROM THE DEPARTMENT OF EDUCATION, IF YOU'RE HERE, WITH THAT. CORRECT? YES. OKAY. WE'RE RESPONDING TO PPO IS CURRENTLY PROJECTING AT MINIMUM A 10% INCREASE. DOES THIS NUMBER IS THAT WITH A 10% INCREASE OR AT THE CURRENT RATE WE'RE AT, THIS IS 2026 PREMIUMS BECAUSE THERE HAS BEEN NO THE PROJECTED MINIMUM THAT THEY'RE PROVIDING A DISCOUNT TO 10% INCREASE. THAT NUMBER SHOULD SHRINK. WELL, WE HAVEN'T ACTUALLY PROJECTED ANYTHING. I DON'T KNOW IF I WAS JUST GUESSING, BUT FOR CONTROLS, THE THE PREMIUM. THAT SHE WAS SITTING AT CORRESPONDS TO THE COUNTY. THAT'S ABOUT IT. IT'S AT A MINIMUM OF 10% INCREASE. THAT'S WHAT WE'RE LOOKING AT FOR THE HISTORY. 27 OKAY, MAYBE JUST AN ESTIMATE. MAYBE. YEAH, I THINK THAT'S. THAT THAT STARTS TO SHRINK. WELL, I WOULD ALSO SAY, IN ALL FAIRNESS TO THAT NUMBER IS YOU DON'T KNOW WHAT'S GOING TO HAPPEN NEXT YEAR. AND WE'RE CONTINUING. AND SO IF YOU THINK IT'S 7.3 THIS YEAR, WE'RE GOING TO PUT. ARE WE GOING TO THINK THAT OVERAGE IS 10 MILLION, 12 MILLION, 14 MILLION AT THE TRAJECTORY IT'S GOING RIGHT NOW. IT'S ALL SPECULATIVE ANYHOW. SO I DON'T KNOW THAT THAT EVEN ON YOUR BEST GUESS, YOU COULD COME UP WITH SOME KIND OF A SCENARIO GIVEN THE CHART THAT WE WITNESSED AND WHAT WE'VE BEEN DOING AND MOVING MONEY OUT OF OUR GENERAL FUND. SO I'M NOT SURE THAT THAT'S I UNDERSTAND WHAT YOU'RE SAYING, BUT I ALSO UNDERSTAND YOU HAVE TO COVET IT.

YOU GOT TO COVER THE WHOLE ASPECT OF THAT AND SAY, WELL, THIS THING'S A RUNAWAY FREIGHT TRAIN AND WE NEED TO UNDERSTAND WHAT WE'RE GOING TO PUT IN IT. AND I DON'T KNOW THAT WE WE

[00:50:03]

AND THEN WE CAN, WE'RE HAPPY TO EVALUATE IT TOO, AND GIVE YOU AN ANSWER AHEAD OF TIME. WHERE WE'RE AT IN THE CONVERSATION. BUT I HAD A QUESTION. WOULD WE AS A DISTRICT HAVE TO HIRE PERSONNEL TO ADMINISTER THIS PLAN TO EVERYBODY? WOULD THAT BE A POSITION WE'D HAVE TO CREATE? NO, NOT NECESSARILY. YOU WOULD JUST HAVE TO DEEM AN AGENCY BENEFITS COORDINATOR AT YOUR AGENCY. AND TYPICALLY IT'S THE HR PERSON WHO HANDLES BENEFITS, BUT WE DO ALL THE ADMIN STUFF AND IT'S A BIG ADMINISTRATIVE SHIFT OFF OF YOU GUYS. I'M SURE YOUR CURRENT BROKER IS HANDLING A LOT OF IT NOW, BUT WE HANDLE ALL THE ENROLLMENTS AND ONBOARDING. WE PUT TOGETHER THE COMMUNICATION MATERIALS FOR ANNUAL ENROLLMENT. WE HOST WEBINARS, WE HAVE VIDEOS THAT BREAK DOWN HEALTH INSURANCE THAT MAKE IT EASY. WE PUT TOGETHER NEW HIRE GUIDES.

SO IF YOU HAVE A NEW HIRE, COME ON BOARD, WE HAVE A GUIDE THAT WILL WALK THEM THROUGH OUR HEALTH INSURANCE PLANS AND THINGS LIKE THAT. SO WE TRY TO DO EVERYTHING WE CAN DO TO TAKE THE ADMINISTRATIVE BURDEN OFF OF YOU GUYS, BUT YOU WOULD HAVE TO NAME SOMEONE AT YOUR AGENCY.

BUT ALL OF OUR AGENCIES JUST USE SOMEONE THAT'S ALREADY ON STAFF THAT'S HANDLING THE BENEFITS AS THE DESIGNATED AGENCY BENEFITS COORDINATOR. AND THAT WOULD BE OUR LIAISON BETWEEN THE STATE AND YOU GUYS. AND THEN THE OTHER THING TOO, IT CAME UP EARLIER IN THE SPEAKER'S PRESENTATION, BUT ONE THING I FAILED TO MENTION IS WE ALSO OPERATE A 75 PERSON STATE EMPLOYEE STAFFED CALL CENTER, AND YOU CAN CALL US DURING BUSINESS HOURS MONDAY THROUGH FRIDAY, OR YOU CAN EMAIL, YOU CAN TEXT, AND IT GENERATES A TICKET IN OUR SYSTEM. AND WE HAVE A ZENDESK AS OUR TICKETING SYSTEM. AND THEY HAVE A CUSTOMER SERVICE RATING OF OVER 95%. THEY'RE VERY RESPONSIVE AND YOU CAN PICK UP THE PHONE AND TALK TO A HUMAN BEING.

THAT'S REALLY NICE WHEN YOU HAVE QUESTIONS ABOUT YOUR YOUR HEALTH INSURANCE AND THE ABC CAN CALL OR THE EMPLOYEE CAN CALL THEMSELVES. AND THE OTHER THING ABOUT THE STATE PLANS IS BECAUSE WE'RE THE STATE AND WE NEGOTIATE WITH OUR CARRIERS ON WHAT THEY HAVE TO PROVIDE OUR MEMBERS, WE MAKE THEM OPERATE A DEDICATED SERVICE LINE JUST FOR STATE PLAN MEMBERS. SO BLUE CROSS BLUE SHIELD HAS A PHONE NUMBER THAT ONLY STATE PLAN MEMBERS CAN CALL AND GET THROUGH TO SOMEONE. THE OTHER DAY I WAS LIKE, OH, IT CAN'T BE THAT DIFFERENT. AND SO I JUST CALLED THE GENERIC BLUE CROSS BLUE SHIELD LINE AND IT SAID, YOUR WEIGHT IS GOING TO BE 18 MINUTES. I WAS LIKE, NEVER MIND. I'M GOING TO CALL OUR STATE DEDICATED LINE. I GOT RIGHT

[00:55:05]

1125 AND I DON'T KNOW WHAT THE OTHER NUMBER IS AT 15%, SO YES OR NO? DO YOU THINK THE STATE PLAN IS BETTER THAN OUR CURRENT PLAN? YES OR NO? IF YOU WERE HAVING TO TAKE THE INSURANCE, WOULD YOU CHOOSE THE STATE PLAN OVER OURS BASED OFF OF THE NUMBERS I JUST READ TO YOU? YES.

WHY? WHAT IT OFFERS. BUT BASED OFF OF THE NUMBERS THAT I JUST READ FOR YOU, THAT'S GOING TO COME OUT OF THE POCKET OF OUR EMPLOYEES. WELL, EITHER WAY, THEY'RE GOING TO BE EXPERIENCING MORE OUT OF THEIR POCKET BECAUSE YOU CANNOT SUSTAIN YOUR CURRENT BENEFITS, THE FINANCIAL TREND YOU'RE GOING NOW. SO THEY'RE GOING TO HAVE TO EITHER PAY MORE OR YOU GUYS ARE GOING TO HAVE TO PAY MORE ONE OR THE OTHER. AND SO IF YOU'RE SAYING IT'S GOING TO STAY THE SAME FOR WHAT THEY'RE PAYING, IT'S PROBABLY WORTH IT TO THE SCHOOL BOARD, THE COUNTY, THE TAX. I'M TALKING ABOUT THE EMPLOYEE, NOT US EMPLOYEE. IF YOU ARE AN EMPLOYEE OF THIS DISTRICT, WOULD YOU PREFER OUR 10% 1000 AT 761 FOR TEN MONTHS? OR THE NUMBERS THAT I READ YOU

[01:00:02]

THERE'S SOMEWHERE THAT SOMETHING'S BEING CUT. IT JUST IS. I DO AGREE THAT THIS IS NOT SUSTAINABLE. LIKE WE'VE TALKED ABOUT THAT EVERY MEETING, IT'S NOT SUSTAINABLE. BUT EVERY YEAR WE HAVE ADDRESSED PAY WITH THE ANTICIPATION THAT INSURANCE WAS COMING AND THAT WE WERE GOING TO MATCH WHAT DISTRICTS AROUND US PAY IN FOR EMPLOYEES. AND WE'VE NOT DONE THAT YET. SO THAT IS STILL ON THE TABLE. I REACHED OUT JUST AS AN ASIDE TO SOME OF THE REPRESENTATIVES FROM RUTHERFORD COUNTY, MUCH LARGER DISTRICT, AND THEY SAVED 5 TO $7 MILLION THE FIRST YEAR.

THAT'S REAL SAVINGS THAT THEY HAD WHEN THEY MADE THAT TRANSITION. AND 6000 EMPLOYEES, YOU KNOW, 52,000 STUDENTS. SO IT'S A MUCH YOU KNOW, IT'S A BIGGER ANIMAL. SO ARE THOSE COSTS EQUIVALENT? ARE WE GOING TO SEE A SIMILAR REDUCTION? I DON'T KNOW, I JUST THINK THAT THE NUMBERS THAT WE WERE TALKING ABOUT IN THESE SLIDES ARE REPRESENTATIVE OF TODAY'S OVERAGES. WE'RE ONLY GUESSING. WE HAVEN'T EVEN PUT A GUESS IN THERE FOR WHAT THE POTENTIAL COULD BE BASED ON THE TRAJECTORY WE'RE ON FOR WHAT THOSE NUMBERS COULD BE FOR PREDICTING IN THE FUTURE. SO IT ISN'T EXACTLY, YOU KNOW, BECAUSE WE ONLY KNOW WHAT WE KNOW. WE DON'T KNOW WHAT WE DON'T. AND SO THAT'S WHY THE PROJECTIONS, AT A MINIMUM, WE'RE SHOWING HERE IS POTENTIAL SAVINGS, NOT A THEORETICAL MAXIMUM. BUT WE DON'T KNOW WHAT THAT IS. RIGHT. SO BECAUSE WE DON'T KNOW WHAT OUR OUR CLAIMS ARE GOING TO BE LIKE NEXT YEAR, WE JUST KNOW THAT THE, THE TRAJECTORY WE'VE BEEN ON. THAT'S ALL RIGHT. AND TO SAY THEY'RE GOING TO LOSE BENEFITS, I DON'T I DON'T KNOW WHAT BENEFIT THEY'RE GOING TO LOSE BECAUSE RIGHT NOW IT'S JUST A NUMBERS THING RIGHT HERE. SO YOU SEE YOU'RE PAYING 7.3 MILLION IN CLAIMS, AND THEN YOU'RE PAYING ANOTHER 25.5 IN PREMIUMS IN THE CLINIC. IF YOU STILL WANT TO OPERATE THE CLINIC, SAY IT'S 1.5 MILLION. STILL, YOU CAN TAKE YOUR SAVINGS OF 5.8 MILLION, WHICH MAY BE GREATER BECAUSE THIS IS THE MOST EXPENSIVE PLAN. SO THIS IS THE WORST CASE SCENARIO. YOU'LL GET $5.8 MILLION BACK IN SAVINGS TOTAL. SO YOU CAN TAKE A MILLION AND A HALF OF THAT AND KEEP THE CLINIC RUNNING AS IS. YOU MAY HAVE TO SUPPLEMENT.

[01:05:07]

THERE'S ISSUES WITH THAT SYSTEM AS WELL. SO IT'S GOOD TO LOOK AT THE OPTIONS AND BEYOND JUST THE COSTS. THE GOOD THING FOR ME, THOUGH, IS THAT THE TEACHERS HAVE TO DECIDE, YOU KNOW, TEACHERS WILL VOTE. AND I THINK THIS IS THE FIRST STEP THAT MR. HOLMAN WANTS TO DO IS AT LEAST BRING THE STATE AND GET SOME INFORMATION, GET THAT PROVERBIAL BALL ROLLING, AND THEN GET DETAILS ON WHAT OUR TEACHERS, YOU KNOW, WHAT OUR ARE THE PEOPLE WHO CAN GET BENEFITS, ELIGIBLE, ELIGIBLE BENEFICIARIES TO GET THEM, YOU KNOW, UNDERSTANDING AND KNOWLEDGEABLE ABOUT THIS PLAN AND WHETHER WE'RE GOING TO DO A VOTE OR NOT, AT LEAST THEY'RE GOING TO BE THE ONES, IT'S GOING TO BE THEIR VOICE THAT WE WOULD HEAR IF WE EVEN GET TO THAT POINT. SO THAT MAKES ME THAT MAKES ME MORE SECURE IN SAYING, YOU KNOW, GETTING THIS INFORMATION. THAT'S WHY WE'RE, WE'RE ASKING THESE QUESTIONS. AND I DON'T MEAN TO BE CONFRONTATIONAL OR JUST CONTENTIOUS. I JUST WE CARE ABOUT OUR TEACHERS. AND THIS IS THIS HAS BEEN A HOT TOPIC THE WHOLE WEEK, ESPECIALLY, YOU KNOW, WITH RETIREES AND, YOU KNOW, THE CLINIC. SO WE THESE ARE OUR FAMILIES, THESE ARE OUR NEIGHBORS. THESE ARE PEOPLE THAT WE LOVE. AND, BUT WE ALSO HAVE TO BALANCE THAT WITH, WITH WHAT OUR BUDGET IS. SO WE HAVE TO LOOK AT OTHER OPTIONS OR WE WOULDN'T BE DOING OUR JOBS. SO LIKE I SAID, THANK YOU SO MUCH FOR BEING HERE. AND WE ALL HAVE YOUR CONTACT INFORMATION AND CONTINUE TO CORRESPOND WITH YOU.

WE PROBABLY, YOU KNOW, MAYBE WE'LL GET REQUEST SOME STUFF FROM MISS OWENS ABOUT THAT THE EQUAL TO AND, YOU KNOW, SUPERIOR SO WE CAN GET MAYBE MORE INTO THE WEEDS IF WE'D LIKE TO. AND THEN I JUST ENCOURAGE EVERY BOARD MEMBER TO REACH OUT TO HER SO THAT WHENEVER, IF IF IT DOES COME UP DURING A MEETING AND WE DO, YOU KNOW, DECIDE TO, TO TAKE A VOTE OR THEN WE'RE ALL EDUCATED AND WE'RE NOT, YOU KNOW, IT'S NOT A LAST MINUTE THING. SO I'M, I'M HAPPY. I DON'T KNOW IF ANYONE ELSE HAS ANY MORE QUESTIONS OR ANYTHING. YEAH, I JUST, I JUST, I JUST WANTED TO FINISH BY SAYING, YEAH, I KNOW IT'S AN EMOTIONAL DECISION. I KNOW THIS IS THESE ARE FAMILIES, THESE ARE THIS IS REAL COVERAGE. THIS IS THESE ARE THINGS THAT, THAT AFFECT EVERY FAMILY IN WILSON COUNTY SCHOOLS. I TOTALLY GET THAT, YOU KNOW, AND, AND THAT'S WHY IT'S GOT TO BE A COMPREHENSIVE DISCUSSION. LOTS MORE TO COME. THAT'S WHY I DON'T WANT TO LOOK LIKE IT'S JUST ABOUT THE NUMBERS. AND WE'RE JUST GOING TO BE CUTTING COSTS. BUT I THINK IT'S A REAL IT'S A IT'S A REAL DISCUSSION. AND WE NEED TO HAVE. BECAUSE WE DON'T KNOW, WE AT LEAST IF WE STAY ON OUR CURRENT PLAN, NEED TO BE HONEST WITH THE EMPLOYEES AND SAYING, WE JUST DON'T KNOW WHAT YOUR FUTURE PREMIUMS GOING TO LOOK LIKE. WE'RE GOING TO HAVE. WE HAVE MEETINGS. WE DISCUSS IT EVERY, EVERY MONTH. HOPEFULLY PEOPLE ARE LISTENING IN AND BEEN WATCHING THE CHART, BUT WE'RE GOING TO HAVE TO HAVE SOME REAL DISCUSSIONS ABOUT WHAT IT IS THAT WE'RE POTENTIALLY SHOULD COULD GO BASED ON HISTORICAL NUMBERS.

WE'RE WE'RE GETTING. SO AT LEAST THEY KNOW THAT IT'S, IT CAN'T STAY THE SAME. IT'S GOING TO HAVE TO EITHER EITHER THROUGH EXCLUSIONS IN OUR COVERAGE OR CO-PAYS OR INCREASED PREMIUMS. I THINK IF WE KEEP OUR CURRENT PLAN, THOSE ARE THE OPTIONS WE'RE REALLY GOING TO HAVE TO HAVE AND OR WHAT ARE WE GOING TO GIVE UP IN OUR CURRENT BUDGET IN TERMS OF MAINTENANCE OR OTHER THINGS TEACHER RAISES OR WHATEVER? IT'S A IT'S A TOTAL BUDGET DISCUSSION. SO, BUT I KNOW IT'S NOT JUST NUMBERS, IT'S PEOPLE'S LIVES AND PEOPLE'S EVERY DAY GOING TO THE DOCTOR, I GET THAT. SO IT'S NOT A I'M NOT DOING THAT IN A VACUUM EITHER. SO I JUST WANTED TO MAKE SURE YOU KNEW THAT. FIRST. I WANT TO SAY THANK YOU FOR COMING, ESPECIALLY SINCE YOU ARE OFF THE CLOCK. SO I APPRECIATE THAT. JUST REAL QUICK, YOU MAY OR MAY NOT BE ABLE TO ANSWER THIS, BUT YOU WERE SPEAKING TO HSAS AND FSAS. ARE THERE CONTRIBUTION LIMITS FOR SEED MONEY? I KNOW THERE ARE FOR EMPLOYEES, BUT IF WE WERE TO PROVIDE SEED MONEY, IS THERE LIKE A CAP THAT THE DISTRICT WOULD BE AT, OR HOW DOES THAT WORK? SO AS LONG AS YOU DON'T EXCEED THE FEDERAL SET MAXIMUM FOR THE CONTRIBUTION PER YEAR, THEN YOU CAN CONTRIBUTE THE FULL AMOUNT. BUT THEN THE EMPLOYEE WOULD NOT BE ABLE TO CONTRIBUTE ANYTHING.

BUT THE MIX OF THE TWO CANNOT EXCEED THE FEDERAL LIMITS EVERY YEAR. AND THANK YOU, THANK YOU.

[01:10:06]

AND I WILL SAY, WHEN I WAS IN THE CLASSROOM, I THOUGHT THE STATE PLAN BECAUSE I KNEW PEOPLE ON THE STATE PLAN AND I WAS LIKE, HEY, THIS LOOKS GOOD. WHY DON'T WE DO THIS? AND WHEN MR. LUTTRELL AND I FIRST MET, WE THOUGHT THE STATE PLAN. BUT NOW THAT I HAVE THE FIGURES AND I DO THE MATH AND I KNOW EXACTLY WHAT WE PAY AND WHAT OUR EVERYTHING ABOUT OUR PLAN, BASED ON WHAT I KNOW AND WHAT I KNOW FROM YOU GUYS. I UNDERSTAND NOW WHY WE NEVER WOULD GO TO THE STATE PLAN AND WHY THEY ALWAYS TOLD US IT WASN'T A GOOD IDEA. BUT I WAS ON THE STATE PLAN BUS FOR THE LONGEST, ALONG WITH MR. LUTTRELL YEARS AGO. AND BECAUSE I DO KNOW PEOPLE ON THE STATE PLAN AND THEY LOVE IT, BUT FOR ME, FOR WHAT I KNOW, I CAN'T SEE IT, BUT BUT I WOULD I AM OPEN TO YOU COMING BACK OR SOMEBODY COMING BACK TO PROVE ME WRONG. WELL, WE DON'T WANT TO PROVE RIGHT OR WRONG. WE JUST WANT TO GIVE YOU THE INFORMATION AND YOU GUYS CAN MAKE THE DECISION. YOU'RE THE DECISION MAKERS. AND SO THE THE VOTE DOES HAVE TO BE CERTIFIED BY YOU GUYS. SO, YOU KNOW, I GUESS AT THE END OF THE DAY, YOU HAVE THE FINAL SAY. SO ONCE THE MAJORITY, IF THE MAJORITY VOTES YES, THEN YOU GUYS CERTIFY THE VOTE AND SEND US A LETTER SAYING THAT THE MAJORITY OF YOUR BENEFITS ELIGIBLE EMPLOYEES HAVE VOTED TO COME ON TO THE STATE PLANS. SO QUICK QUESTION ON THAT. SO ON THE VOTE ITSELF, THEY'D HAVE TO BE INFORMED VOTERS. SO HOW DOES IT WORK? IS IT IS IF WE WERE GOING TO ENTERTAIN THE OPTION TO MAKE THEM EDUCATED IN WHAT THEY'RE CHOOSING, WHAT DOES THAT LOOK LIKE? AND CAN YOU STEP US THROUGH KIND OF SOME OTHER LEAS THAT WENT THROUGH SIMILAR SITUATIONS? AND THEN HOW DID THEY ARRIVE AT THE VOTE? AND THEN IS THERE SOME TIME LAPSE? AND THEN THEY DECIDED AND THEN YOU MOVED THE BALL FORWARD. OR MAYBE IT STOPS RIGHT THERE, RIGHT? I MEAN, CAN YOU MAYBE ELABORATE ON THAT? THE TIMELINE, IT IT CAN BE AS AS QUICK AS 120 DAYS, OR IT CAN BE A YEAR LONG PROCESS WHERE WE HAVE TO REALLY EVALUATE AND HAVE A LOT OF MEETINGS AND DO ALL THE THINGS. SO EITHER WAY, WE, WE'RE FLEXIBLE WITH THE TIMELINE. ALL WE NEED IS 120 DAY NOTICE, AND WE CAN BRING YOU ON ANY TIME THROUGHOUT THE YEAR. WITH THAT SAID, AS FAR AS GETTING THE EMPLOYEES EDUCATED, THAT WOULD BE THE MOST IMPORTANT THING IS ALLOWING OURSELVES ENOUGH TIME TO DO THAT, ESPECIALLY WITH SUMMER APPROACHING AND ALL THE THINGS. BUT THERE'S SEVERAL DIFFERENT WAYS WE CAN DO THAT. SO I COULD COME AND AND WE COULD DO A RECORDED PRESENTATION AT A BOARD MEETING OR A WORKSHOP OR JUST IN GENERAL, WE CAN RECORD A WEBINAR THAT WE CAN SEND OUT TO YOUR PEOPLE. WE CAN HOST A MEETING IN A GYM AT ONE OF THE SCHOOLS OR MULTIPLE IN THE AREA, AND DO AN IN-PERSON EDUCATION SESSION, AS WE CALL THEM. WE CAN ALSO SEND OUT THE MATERIALS AND THEN DO AN IN-PERSON Q&A SESSION, WHICH TENDS TO WORK A LITTLE BETTER BECAUSE THEY HAVE TIME TO DIGEST IT, TALK IT OVER WITH THEIR FAMILIES OR WHATEVER, AND THEN COME AND ASK PREPARED TO ASK QUESTIONS. WE ALSO CAN PUT TOGETHER A PLETHORA OF MATERIALS TO SEND TO THEM, SO THEY CAN LOOK AT OUR PLAN COMPARISON CHARTS, AND WE CAN PUT TOGETHER A PREMIUM TABLE BASED ON WHAT CONTRIBUTION YOU'RE PROJECTING AND WHAT THEY WOULD HAVE TO PAY. AND THEN OF COURSE, SOME OF OUR VIDEOS OR FLIERS OR ANY OF THAT, WE CAN PUT ALL THOSE RESOURCES IN ONE PLACE SO YOU CAN SEND THEM OUT DIGITALLY TO YOUR PEOPLE AND THEY CAN REVIEW THEM. BUT AGAIN, A LOT OF DIFFERENT OPTIONS. WE HAVE THE CAPABILITY TO RECORD, DO VIRTUAL, COME IN PERSON, WHATEVER IT TAKES. WE'RE WILLING TO MAKE SURE THAT EVERYONE HAS A GOOD UNDERSTANDING OF OUR STATE HEALTH PLANS, AND THEN CAN PICK A PLAN THAT'S GOOD FOR THEMSELVES AND GOOD FOR THEIR FAMILIES. AGAIN, IT'S FOUR PLAN OPTIONS, FOUR TIERS, TWO CARRIERS, AND EACH CARRIER HAS TWO NETWORK OPTIONS. SO THERE'S A LOT OF CHOICE. AND WE WANT TO MAKE SURE THAT THEY'RE WELL

[01:15:06]

AND THEN WHEN I HIT MY DEDUCTIBLE, THEN IT GOES TO THE 9010, RIGHT. BUT YOU'RE SAYING WHEN I PAY MY MY $25 COPAY, IT'S NOT GOING TOWARDS MY 750 DEDUCTIBLE. THAT'S CORRECT.

OKAY. THANK YOU. THAT'S ALL RIGHT. AND THANK YOU. THE FLOOR IS YOURS. WAIT. REAL, REAL QUICK. SHOULD WE HAVE A COPAY WITH YOU GUYS? WOULD IT GO AGAINST MY $500 DEDUCTIBLE? WE COULD DESIGN IT EITHER WAY. YOU WANT IT? ALL RIGHT. THANK YOU. SO YOU JUST HIT ON AN ELEMENT THAT I THINK IS GOING TO BE INDICATIVE OF A LOT OF THINGS WE'RE GOING TO TALK ABOUT TONIGHT, WHICH IS THAT IN THE CURRENT STATE THAT YOU'RE IN WITH US AS YOUR CONSULTANT, JUST AS AON IS HELPING THE STATE TO, YOU KNOW, FOR A FEE TO CONSULT, I'M SORRY, IS THIS BETTER? I JUST NEED TO LEAN IN. NO. IT'S FINE. THANK YOU FOR TELLING ME. THAT. JUST AS THE STATE PAYS A CONSULTANT TO ADVISE IT ON THE ADMINISTRATION OF PLAN, DESIGN CHANGE AND RATES AND ALL THE THINGS THAT AFFECT THAT PLAN, YOU ALL HAVE DONE THE SAME THING. AND SO WE SERVE AT YOUR PLEASURE, AND YOU HAVE COMPLETE CONTROL OVER WHAT YOU WANT TO SEE. AND THEN OUR TEAM WILL GO MODEL THOSE THINGS FOR YOU. AS WE HAVE IN THE PAST. THERE ARE A LOT OF THINGS WE CAN MODEL, SO JUST KEEP THAT IN MIND THROUGHOUT THE PRESENTATION. I'M MARISSA COMBS SMITH. I AM AN ATTORNEY BY TRADE. AND THEN I WENT INTO THE BENEFITS BROKERAGE SPACE IN 2015. AND WHAT REALLY LED TO THAT WAS ACTUALLY A SITUATION WHERE THE STATE HEALTH PLAN WAS MAKING SOME DECISIONS THAT WERE AFFECTING A LOT OF LOCAL EDUCATION AGENCIES IN PARTICULAR, THAT THAT HAD, YOU KNOW, AN IMPACT. AND SO I CAME TO WORK IN THE BENEFIT SPACE AT THAT TIME AND JOINED WEST OSIER. AND THE TWO OF US HAVE WORKED ALL ACROSS THE STATE FOR A NUMBER OF PUBLIC ENTITIES SINCE THAT TIME. SO THAT'S, THAT'S HE'S BEEN HERE A LOT LONGER THAN I HAVE DOING IT. BUT I JOINED HIM IN 2015. SO THREE THINGS TO LEVEL SET BEFORE WE BEGIN. THE STATE HEALTH PLAN IS A GOOD, ACTUALLY GREAT OPTION FOR MANY, IF NOT MOST LES MOST OF THE TENNESSEE SCHOOL DISTRICTS THAT GALLAGHER SERVES ARE ON THE STATE HEALTH PLAN.

WE HAVE ABOUT 85 OR 6 CUSTOMERS IN TENNESSEE, MOST THAT ARE SCHOOL DISTRICTS THAT WE SERVE.

AND OF THOSE, WE ALSO HAVE SOME PRIVATE, SELF-FUNDED PLANS, LIKE RUTHERFORD COUNTY GOVERNMENTS THAT USED TO ALSO INCLUDE THE SCHOOLS AS WELL AS METRO NASHVILLE PUBLIC SCHOOLS IS A RECENT ONE THAT WE HAVE GOTTEN. BUT I'M GIVING YOU THAT TO SAY LIKE, WE DO HAVE A LOT OF THESE AND A LOT OF OUR CUSTOMERS DO BENEFIT FROM THE STATE HEALTH PLANS OFFERING.

HAVING SAID THAT, WILSON'S PLAN IS QUITE DISTINCTIVE. SO WHAT DO I MEAN BY THAT? THIS IS A

[01:20:06]

RIGHT. WE'VE TALKED SOME ABOUT YOUR ON SITE CLINICS TONIGHT. I THINK I HEARD SOME NEW INFORMATION THAT I HAVE NEVER HEARD BEFORE ABOUT THE WAY THE CLINIC SHOULD OPERATE, POST A MOVE TO THE STATE. WE ACTUALLY HAVE A CLINIC IN IN I THINK IT'S 3 OR 4, FOUR PUBLIC ENTITIES THAT ARE ON THE STATE HEALTH PLAN THAT HAVE A CLINIC JUST EXACTLY LIKE YOURS, AND THEY DON'T CHARGE A FEE FOR EMPLOYEES TO SEE IT. SO IT IS AN OPTION TO KEEP THAT. IN FAIRNESS, IT'S BEEN OUR EXPERIENCE THAT THAT'S BEEN JUST FINE. ALSO, YOU HAVE PROGENY, FERTILITY BENEFITS, YOU HAVE RETIREE COVERAGE THAT'S INTACT UNDER YOUR BOARD POLICY. AND THESE ARE ALL IMPORTANT FEATURES THAT DISTINGUISH YOUR PLAN FROM WHAT THE STATE HAS. THE THIRD THING I WANT TO SHARE JUST TO LEVEL SET, IS THAT TODAY IS THE FIRST IN WHAT WE SEE AS MANY STEPS. I THINK YOU'VE ACKNOWLEDGED THAT. SO THERE'S AGREEMENT IN THAT ALREADY. BUT IN TERMS OF LIKE, WHAT ARE THOSE STEPS? I THINK IT'S REALLY CRITICAL TO HAVE YOUR FULL RATES AND PLAN DESIGNS FOR 2027. THEY'VE NOT YET BEEN RELEASED. THERE WAS A MEETING YESTERDAY WHERE AON WAS AT THE INSURANCE COMMITTEE FOR THE STATE THAT WAS REFERENCED EARLIER THAT COMMITTEE AND PRESENTED. I'VE REVIEWED THE CONTENT FROM THAT, AND THERE ARE SOME INTERESTING PLAN DESIGN CHANGES CONTEMPLATED THAT WOULD INCREASE THE OUT OF POCKET COSTS AND THE DEDUCTIBLES SOME MORE FOR TO IN ORDER TO ACHIEVE AROUND A HALF A PERCENT PLAN DESIGN COST SAVINGS IS WHAT THEY'RE PROJECTING. IT'S NOT FINAL.

THEY'RE GOING TO VOTE. STILL, THEY HAVEN'T VOTED. BUT THAT'S EVEN BEFORE ANY RATE DESIGN OR RATE CHANGES ON THE PLANS. SO WE REALLY DON'T KNOW THAT INFORMATION. THE BOARD SET CONTRIBUTIONS. YOU WOULD HAVE TO SET THE RATE CHART, MEANING YOUR CONTRIBUTION VERSUS THE EMPLOYEE'S PORTION WOULD NEED TO BE SET FOR ALL TIERS AND PLANS BEFORE THESE EMPLOYEES CAN REALLY ASCERTAIN THE COST, BECAUSE IT'S THE TOTAL COST OF THEIR HEALTH CARE. AND THEN WE WOULD NEED TO DO SOME PREDICTIVE MODELING. AS YOUR CONSULTANT ON WHICH PLANS WE EXPECT EACH MEMBER TO PICK BASED ON THOSE RATE CHARTS. BECAUSE IF IF THEY DON'T, IF THERE'S A BIG PREMIUM DIFFERENTIAL BETWEEN THE PREMIER AND THE STANDARD, THAT MIGHT DRIVE SOME BEHAVIOR FOR CERTAIN PEOPLE BASED ON WHAT THEY CAN AFFORD, WE'D NEED TO MODEL THAT. AND THEN THERE ARE STATUTORILY REQUIRED MAJORITY VOTE. THAT ISSUE THAT WE TALKED ABOUT TONIGHT ALREADY, IT'S NOT JUST THE TEACHERS AND IT DOES NOT INCLUDE RETIREES BECAUSE IT IS THE DEFINITION OF THE STATUTE SAYS THEY NEED TO BE EMPLOYEES. SO JUST KEEP THAT IN MIND. SO THAT'S KIND OF THE OVERVIEW OF WHAT I AM PREPARED TO DISCUSS. AND YOU MAY HAVE OTHER THINGS YOU WANT TO DISCUSS, OR MAYBE NOT ALL OF THESE THINGS, BUT I AM PREPARED TO GO INTO ANY OF THEM. THE THE ELEPHANT, I THINK IN THE ROOM IS, IS THE STATE INSURANCE BETTER INSURANCE? THE PERCEPTION, AS YOU'VE ACKNOWLEDGED, IS THAT OFTEN WE THINK, OH, IT IS BETTER INSURANCE, THAT BIGGER IS BETTER REALLY WHEN YOU GET OVER AROUND A THOUSAND LIVES, YOU START TO HAVE CREDIBLE POPULATIONS. FROM AN ACTUARIAL PERSPECTIVE, YOU START TO GET REALLY CREDIBLE IN TERMS OF BEING ABLE TO DO MORE PREDICTIVE MODELING ON HOW YOU WILL PERFORM IN THAT ENVIRONMENT, THE LENGTH OF TIME THAT WE HAVE ACCESS TO YOUR CLAIMS DATA ALSO HELPS YOU BE PREDICTIVELY SOLID. AND IN THIS POSITION YOU'RE IN, YOU'RE IN A FAIRLY PREDICTABLY SOLID POSITION. OKAY, SO WHILE IT FEELS LIKE THERE HAVE BEEN SOME BIG SWINGS, I THINK THERE'S A REASON THAT'S OCCURRED THAT I CAN WALK YOU THROUGH. BUT FROM A BETTER INSURANCE PERSPECTIVE, YOU HAVE 100.6%, MEANING 0.6% BETTER PLAN WITH THEIR RICHEST PLAN COMPARED TO YOUR PLAN. AND THEY YOU HAVE 111.3% RICHER PLAN THAN THEIR LOWEST PLAN. AND THEN THERE ARE TWO PLANS IN BETWEEN. OKAY, NOW WHEN WE SAY

[01:25:05]

HERE'S WHAT WE KNOW TO BE TRUE ABOUT YOUR PLAN AND THE TREND WE'RE APPLYING. AND THESE ARE THE DIFFERENCES. JUSTIN, LET'S TALK ABOUT THE $7 MILLION ANNUAL DEFICIT. WHAT HAPPENS WHEN WE PUT THAT NUMBER ON THE WILSON COUNTY PLAN VERSUS THE SOLVENT STATE PLAN? YEAH.

YOU'RE YOU'RE ASKING A GREAT QUESTION. THAT $7 MILLION NUMBER THAT YOU'RE REFERENCING IS ACTUALLY FACTORED INTO THIS. IT IS FACTORED INTO THIS FOR THE THE 2026 PROJECTION FOR SPEND. WHAT IS NOT FACTORED INTO THIS IS I'VE LISTED OUT THERE ADDITIONAL PHARMACY SAVINGS THAT WE ACHIEVE FOR 2026 THAT WE'RE JUST STARTING TO SEE THE IMPACT OF IN YOUR PLAN, GALLAGHER USES A PHARMACIST LED PROCUREMENT PROCESS. AND THEN WE ALSO LAYERED IN AUDIT RIGHTS AND ONGOING MANAGEMENT TO YOUR PHARMACY FOR THIS THREE YEAR CONTRACT, IN THAT THE TEAM WAS ABLE TO ACHIEVE JUST IN REBATES, IMPROVEMENTS OF $600,000 A YEAR IN PROJECTED REBATE DIFFERENCE, WHICH IS ABOUT 1.9 MILLION OVER THREE YEARS. ON TOP OF THAT, WE HAD NO FORMULARY CHANGE, MEANING YOUR EMPLOYEES DIDN'T FIND OUT THAT THEIR MEDICINE CHANGED WHICH CATEGORY IT WAS IN. SO THERE WAS NO DISRUPTION TO THEIR PRESCRIPTIONS. IN ADDITION, WE GOT AUDIT RIGHTS, MEANING IF THE IF THE PBM DOES NOT MANAGE THE PLAN PROPERLY AND IT'S DISCOVERED AN AUDIT, THEN THOSE DOLLARS COME BACK INTO YOUR PLAN. SO WE HAVE AN ACCOUNTABILITY MECHANISM, THE PBM. THAT ONE IS YOUR CURRENT PBM. IT'S THE ONE YOU'VE HAD FOR A WHILE. WELL DONE. SO NO CHANGE TO THE EMPLOYEES AS I MENTIONED. AND THEY ABSORBED THE COST OF THAT PROCUREMENT AND THE COST OF THE AUDIT AND THE MANAGEMENT FEE THEY'RE

[01:30:05]

YOU'VE MOVED IT FROM THE GENERAL FUND. SO I DON'T MIND IF YOU KEEP DOING IT THAT WAY.

BUT I THINK YOU SHOULD ACKNOWLEDGE TO YOURSELVES THAT THAT'S THE REALITY OF WHAT'S HAPPENED SO THAT YOU CAN MAKE A DECISION BASED ON, DO WE WANT TO SUSTAIN THIS EVEN THOUGH IT'S VERY RICH, OR DO WE NEED TO START MOVING THIS NEEDLE THROUGH PLAN DESIGN CHANGES? GALLAGHER DOESN'T CARE ONE WAY OR THE OTHER. I CAN TELL YOU, I THINK IT'S WONDERFUL THAT YOU'VE BEEN ABLE TO GIVE THEM TEN YEARS OF A RATE PASS WHERE NO INCREASES WERE PASSED TO EMPLOYEES FOR TEN YEARS, FOLLOWED BY A $50 CONTRIBUTION ON EMPLOYEE ONLY. THAT HAPPENS TEN MONTHS OF THE YEAR, NOT 12. THAT IS. I MEAN, MAN, I WANT THAT INSURANCE. SO I'M NOT DISCOUNTING WHAT YOU HAVE BEEN ABLE TO DO. PLEASE DO NOT MISUNDERSTAND ME. I THINK IT'S AMAZING, BUT I THINK YOU SHOULD GET CREDIT FOR IT BY SHOWING IT IN YOUR BUDGET. YOU'RE SPENDING

[01:35:02]

THAT DOESN'T I MEAN, IF THAT'S WHAT Y'ALL WANT TO DO, YOU CAN DEFINITELY DO THAT, OR YOU CAN CONTINUE TO VOTE ON IT IN THIS ROOM AND APPLY WHAT YOU WANT TO APPLY TO YOUR PLAN, WHICH WHICH WE WOULD MODEL. BUT LOOKING DOWN THIS, YOU CAN SEE THE SPECIALTY PRESCRIPTION CARVE OUT IS PRETTY SIGNIFICANT. RIGHT NOW. THERE IS A COINSURANCE ON THE STATE PLAN.

THERE'S A COINSURANCE FOR SPECIALTY MEDS. AND THEN THAT COINSURANCE CAPS OUT DEPENDING ON WHETHER YOU HAVE AN EMPLOYEE COVERAGE OR TO COMPARE IT TO YOUR FAMILY. AND IT CAPS OUT AT EITHER $2400 OR $6000, DEPENDING ON WHICH PLAN. AND SO THE ARGUABLY THE CHRONICALLY ILL WHO NEED THIS MEDICATION THE MOST. IT'S THINGS LIKE CANCER MEDS, AUTOIMMUNE MEDS, THINGS LIKE THAT. IT'S IT'S CAPPING THOSE. BUT BUT YOUR CURRENT IS A NONE. SO THERE'S THIS WHOLE SEPARATE. LIMIT THEY HAVE TO HIT BEFORE THE COST STOPS HITTING THEIR KITCHEN TABLE. WELL, YEAH. GO AHEAD. WES IS HERE WITH ME. SO I JUST WANTED TO CLARIFY THAT THAT WAS ONE OF THE CHANGES THAT WAS MADE FOR ONE, ONE OF 2026 FOR THE SPECIALTY MEDS. IT IS A SEPARATE OUT OF POCKET MAXIMUM IN ADDITION TO THE REGULAR MEDICAL OUT OF POCKET MAXIMUM.

AND AGAIN, IF I STATED THAT WRONG, YOU KNOW, I'M SURE I CAN BE CORRECTED, BUT YOU WOULD HAVE TO ADD THOSE TWO TOGETHER TO GET THE TRUE OUT OF POCKET MAXIMUM. I GUESS I'M JUST BOILING IT DOWN. LIKE IF WE'RE GOING TO GET INTO OUR BUDGET DISCUSSIONS, WHICH IS REALLY KIND OF WHERE WE'RE GETTING AT, ULTIMATELY, WE CAN HAVE THE COMPARISON BETWEEN THE TWO PLANS. ON THE BENEFIT SIDE, I THINK THAT'S A FRUITFUL EXERCISE TO REALLY GET INTO THAT. BUT WHAT WOULD YOUR BUDGET BE FOR US, KNOWING THE TREND WE'RE ON, ON OUR TOTAL COST? AND I GET WHAT YOU'RE SAYING, IF WE KICK THE CAN FOR TEN YEARS AND OBVIOUSLY IT'S HERE WE ARE, WE GOT TO DEAL WITH IT. SO IF WE'RE ON LOOKING AT JUST OUR CLAIM TREND THAT WE'VE BEEN ON OVER THE LAST THREE YEARS AND WHAT THAT TOTAL COST IS GOING TO BE, I THINK WE NEED TO ANALYZE, IS IT 75% MORE THAN THAN WE HAD THIS YEAR? SO IS THAT ANOTHER ON TOP OF THE THE 7.3? ARE WE GOING TO BE LOOKING AT BECAUSE WE CAN'T PREDICT THE CLAIMS EITHER. AND SO I THINK WE NEED TO WE WE DO PREDICT THOSE. BUT I KNOW, BUT I MEAN, JUST THE INFORMATION THAT YOU HAVE GIVEN US, YOUR FIRM HAS GIVEN US HASN'T PROVED TO BE CORRECT BECAUSE WE'VE GONE WE'VE GONE FURTHER, LIKE IN THE IN YOU WERE GOING TO ADD, AND I GET THE TIME LAPSES A LITTLE DIFFERENT WITH THE $50. RIGHT. AND THERE WAS SUPPOSED TO BE LIKE TWO AND A HALF OR $3 MILLION IN, IN CLAIM REDUCTION, BUT WE HAVEN'T BEEN EXPERIENCING CLAIM REDUCTIONS AT ALL. AND I THINK THAT'S A FACTOR REALLY OF JUST THE COST OF MEDICAL. IT'S NOT THAT'S WHAT I WAS SAYING EARLIER. IT DOESN'T IT HASN'T GONE DOWN EVERY YEAR. IT'S GONE UP EVERY YEAR. SO IT'S AGAIN, IT'S THIS BOARD HAS TO SAY, OKAY, ARE WE GOING TO ALLOCATE $40 MILLION IN TOTAL SPEND? 35 MILLION? IS IT WHAT'S THE NUMBER THAT WE NEED TO KIND OF FACTOR INTO OUR BUDGET. AND THEN WE HAVE A FIXED BUDGET, RIGHT? WITH THE COUNTY. COUNTY IS ONLY GOING TO GIVE US $220 MILLION. ARE WE GOING TO ALLOCATE 35, 40 MILLION? I MEAN, I THINK WE GOT TO GET TO THE POINT WHERE WHAT'S IT GOING TO BE? SO THEN WE'RE RUNNING AGAINST THAT FUND AND WE'RE NOT SHOWING THIS DEFICIT. WE'RE ACTUALLY YOU KNOW WHAT I MEAN? SO I THINK THAT'S THAT'S REALLY KIND OF WHERE I WAS GOING WITH THE DISCUSSION, AT LEAST ON A FINANCIAL SIDE, IS HOW MUCH DOES THIS BOARD NEED TO SET ASIDE, ASSUMING WE KEEP THIS PLAN, WHAT WOULD BE THAT? IS IT 33 AGAIN NEXT YEAR? IS IT 3537 TO ACCOUNT FOR SOME INCREASE IN CLAIM? AND I THINK THAT'S KIND OF WHERE I'M I'M GETTING AT THIS COMPARISON ANALYSIS TO ME IS, IS ONE ASPECT OF IT. BUT IF WE STAY, I WOULD I DON'T KNOW WHAT THAT THAT BUDGET NUMBER

[01:40:02]

AND WHAT'S INTERESTING IS CLAIMS DOLLAR FOR DOLLAR, JUST LIKE YOU ARE, YOU HAVE PURCHASED STOP LOSS, WHICH HELPS TO CAP THE RISK, RIGHT? BUT THEN UP TO THAT CAP, YOU'RE PAYING THOSE CLAIMS. AND SO WHEN WE MODEL WHAT WE ARE PROJECTING, YOU SHOULD BUDGET, WHICH WE HAVE DONE. AND, AND I THINK THERE MAY BE SOME CONFUSION ABOUT THE ACCURACY OF THAT MODEL. I THINK MAYBE IT WOULD BE GOOD FOR US TO REVISIT THAT IN A FUTURE CONVERSATION WITH YOU, BECAUSE I'M UNAWARE OF IT NOT COMING IN WITH WITHIN WHAT WE WOULD EXPECT TO SEE FROM A NORMAL PROJECTION VERSUS ACTUAL. AND WE USUALLY DO THOSE PRETTY CONSERVATIVELY. NOW, IF YOU COMPARE IT TO YOUR BUDGET DOLLAR LINE ITEM, IT'S NOT GOING TO MATCH THAT. RIGHT. BUT IF YOU COMPARE IT TO WHAT WE PROJECT, THE SPEND WILL BE IT'S GOING TO COME IN, I BELIEVE, PRETTY CLOSE BASED ON WHAT WE HAVE PROJECTED. I DON'T HAVE A SLOT IN HERE THAT ADDRESSES THAT, BUT I'M HAPPY TO BRING THAT BACK. WE HAVE AN ENTIRE TEAM THAT DOES THAT. IT'S NOT ME. IT'S OVER MY HEAD. SO IT'S A VERY COMPLICATED PROJECTION. BUT I THINK WHAT YOU WOULD HAVE TO ANSWER FOR US IS THIS, AS IAN IS DOING FOR THE STATE CURRENTLY, DO YOU WANT US TO TRY TO SAVE YOU 1% THROUGH PLAN DESIGN CHANGE? WELL, WE CAN TRY TO REVERSE ENGINEER INTO THAT.

DO YOU WANT US TO SAVE YOU 5%? WELL, WE CAN SHOW YOU WHAT THAT WOULD LOOK LIKE. AND THEN WE CAN DO THE, YOU KNOW, STACKING IT UP AGAINST THE PLANS OF THE STATE AT THAT POINT. SO THERE ARE THINGS THAT COULD STILL BE DONE. YOU KNOW, WE'RE HAPPY TO DO THEM. SO DOES THE BOARD WANT TO GO INTO WHAT THE MEMBER EXPERIENCE WOULD BE ON THESE, THIS DIFFERENCE OR ANY FURTHER OR OR NOT TONIGHT I DON'T WANT I KNOW YOU'VE BEEN HERE A LONG TIME, SO I WANT TO BE RESPECTFUL OF THAT. OKAY. SO WITH EVERY DOLLAR OF EMPLOYER SAVINGS COMES AT A COST TO THE EMPLOYEES AND RETIREES AND PREMIUMS AND POINT OF SERVICE, THE IDEA OF THIS SLIDE IS AT THEIR KITCHEN TABLE. WHAT'S HAPPENING. SO ON THE SINGLE EMPLOYEE COVERAGE, WHERE THERE ARE PREVENTATIVE CARE, MAYBE A COUPLE OF PRIMARY CARE VISITS, YOU KNOW, ONE URGENT CARE VISIT IN THE YEAR, MAYBE A GENERIC PRESCRIPTION ONGOING. IT'S MORE MODEST, THE DIFFERENCE IN THE WAY THE PLAN IS GOING TO OPERATE. THERE WILL BE SOME DIFFERENCE. Y'ALL HIT ON THAT TONIGHT LIKE A CO-PAY NOT HITTING YOUR ONGOING DEDUCTIBLE AND THOSE TYPES OF THINGS. BUT IT'S GOING TO BE A MODEST DIFFERENCE ON THOSE FOLKS. BUT THE FAMILY TIER OR THE SICKER EMPLOYEES AMONG YOU AS WELL, IT IS GOING TO BE A MORE PRONOUNCED DIFFERENCE. SO THE FAMILY TIER, TYPICAL UTILIZATION, PREVENTATIVE CARE, YOU KNOW, AGAIN, KIND OF SIMILAR TO THAT SINGLE EMPLOYEE SCENARIO WHERE THEY'RE GOING, YOU KNOW, AN INPATIENT ADMISSION, MAYBE FOR SOMETHING PLANNED, SEVERAL, YOU KNOW, SPECIALIST VISITS, MAYBE SOME MODERATE PRESCRIPTION USE, IT'S GOING TO BE MORE SIGNIFICANT ANNUAL DIFFERENCE. ONE OF THE REASONS, IN ADDITION TO THE COPAY OR CO-INSURANCE, YOU KNOW, FACTORS THAT WE'VE DISCUSSED IS GOING TO BE THAT PREMIUM DIFFERENCE BECAUSE THE FAMILY PLAN, IF WE'RE COMPARING THE PREMIUM PLAN OR PREMIER PLAN TO YOUR CURRENT OFFERING, THE COST OF THAT INSURANCE FOR A FAMILY IS QUITE A LOT, DEPENDING ON WHERE YOU SET YOUR CONTRIBUTIONS, WHICH MIGHT INCREASE YOUR SPEND BEYOND WHERE IT IS RIGHT NOW. YOU WOULD BE EXPECTING TO PUSH A APPROACHING $10,000 ONTO THAT EMPLOYEE FAMILY SITUATION. THAT'S TWO EXTRA MONTHS OF PREMIUM BESIDES WHAT THEY PAY NOW, BECAUSE THEY'RE ON TEN MONTH AND YOU'D BE GOING TO 12

[01:45:04]

IT'S A REALLY STRONG SUCCESS RATE. YOU'RE IN FERTILITY BENEFIT. I JUST WANTED TO MENTION THAT FOR YOU. AND THEN YOUR TOTAL COST OF HEALTH CARE FOR SAMPLE CLAIM TWO, WE HAVE A SERIES OF THEM WE CAN DO, BUT THIS ONE'S KNEE SURGERY. IT COULD BE ANY MINOR OUTPATIENT SURGERY. THAT'S ROUGHLY $11,500 A YEAR. AND YOU CAN SEE THE TOTAL COST OF THE CURRENT PLAN WOULD BE 1600 FOR THAT. AND ON THEIR RICHEST PLAN, IT WOULD JUMP TO 2471. OF COURSE, IF THEY PICKED THE STANDARD PLAN, WHICH WE DERIVE MORE SAVINGS TO YOU ALL MAYBE THAN IT WOULD BE 3457. IT WOULD DEPEND ON WHERE YOUR RATES WERE SET. RIGHT? THAT'S WHY I SAID MAYBE NOT TO BE CUTE OR SARCASTIC. IT'S BECAUSE UNTIL YOU SET A RATE CHART, I DON'T KNOW. THAT'S THAT'S THE ANSWER. THIS THIS SLIDE IS MEANT TO ADDRESS YOUR VERY QUESTION OF IF IT'S UNSUSTAINABLE, WHAT WE'RE CURRENTLY DOING. IS THERE ANYTHING ELSE WE COULD DO? OR IS MIGRATION TO THE STATE REALLY THE ONLY OPTION? AND THE TRUTHFUL ANSWER IS IT IS NOT THE ONLY OPTION. THERE ARE LOTS OF LEVERS AND BUTTONS YOU CAN PULL WHILE MAINTAINING CONTROL OF YOUR PLANS AND DIRECTIONAL LEADERSHIP FROM THIS BOARD. ONE OF THOSE WOULD BE. SO THE RIGHT SIDE IS MEANT TO SAY CHANGES YOU COULD DO. EITHER WAY, YOU'RE GOING TO HAVE THESE CHANGES IF YOU MOVE TO THE STATE, BUT YOU COULD DO THEM ON A PRIVATE PLAN IF THEY'RE ON THE RIGHT SIDE, THE THINGS ON THE LEFT SIDE, THOSE AREN'T OPTIONAL. THEY'RE GOING TO COME WITH THE DECISION MEMBER COST SHIFTS. SO WE TALKED ABOUT THOSE A LOT. I WON'T BEAT THAT AGAIN. PROGRAM LOSSES OR COSTS NOT REFLECTED BY THE STATE'S SAVINGS ESTIMATE. WE TALKED ABOUT THE CLINICS. YOU ARE IN A THREE YEAR CONTRACT WITH TWO EXTENSION OPTIONS. AND IT'S A BRAND NEW CONTRACT. SO YOU KNOW, I WON'T SAY THAT YOU COULDN'T DEFUND THE CONTRACT BECAUSE CERTAINLY YOUR FUNDING BODY AND THERE IS THAT RIGHT. BUT YOU WOULD BE REMOVING A CONTRACT, MEANING YOU WOULD HAVE TO DEFUND IT AND THEN NOTIFY THE CONTRACT PROVIDER THAT THE BUDGET DIDN'T FUND IT. PROGENY, FERTILITY PROGRAMS, SAME KIND OF DEAL. YOU'VE GOT A CONTRACT AND THEY'RE PROVIDING A BENEFIT. YOU'D HAVE TO FIGURE OUT HOW YOU WANT TO TERMINATE THAT IN A TIMELINE, OR IF YOU'RE GOING TO KEEP IT, KEEPING IT WOULD REQUIRE GOVERNMENT APPROVAL FROM THE STATE. ANY PLANS YOU OFFERED WOULD HAVE TO BE APPROVED BY THEM. SO AN EXAMPLE, RUTHERFORD COUNTY SCHOOLS WANTED TO PUT IN A PLAN THAT INCLUDED AN AIR AND GROUND

[01:50:03]

THAT'S WHAT I GUESS THAT'S WHAT I'M TRYING TO GET AT. SO ARE WE ARE WE, IS IT 10 MILLION? IS IT 15 MILLION? AND THEN AND THEN WE'RE GOING TO HAVE WE'RE WE SHOULD TAKE ALL YOUR CHARTS AND ALL YOUR TOTAL COSTS TO THE EMPLOYEES AND FACTOR THAT BACK IN WHAT THEIR WHAT THEIR COVERAGE IS GOING TO LOOK LIKE, WHAT'S THEIR PREMIUM GOING TO LOOK LIKE? OR IS IT JUST GOING TO BE INCUMBENT UPON THE BOARD JUST TO SAY, WE'RE GOING TO EAT THE 10 MILLION AS AS A BENEFIT TO THE TO THE EMPLOYEES? I THINK THAT'S REALLY WHAT IT COMES DOWN TO. TO ME, IT'S JUST THERE'S A TOTAL COST TO THE PROGRAM AND IT IS A GREAT BENEFIT AND IT DRIVES WHAT IT

[01:55:04]

AND I THINK THAT'S WHERE I'M, I JUST WANT TO KIND OF CUT IT BACK TO THAT. AND MAYBE IF YOU COME BACK, WE COULD LOOK AT THOSE PREDICTIVE MODELS ON THE CLAIMS AND WHAT THAT TOTAL BUDGET MIGHT BE. SO THEN WHEN WE GET INTO OUR BUDGET TALKS, WE CAN HAVE A DISCUSSION ON APPLES TO APPLES DISCUSSION ABOUT THE STATE PLAN VERSUS OUR OWN PLAN. AND THEN WE CAN SAY, LISTEN, WE THINK IT'S A BENEFIT TO KEEP ON THIS PLAN. IT'S GOING TO COST US X AMOUNT MORE.

FINE. WE ALL HOLD HANDS AND WE MAKE A DECISION, AND THEN WE FIGURE OUT WHAT WE'RE CUTTING IN ORDER TO KEEP IT. THAT'S I THINK THAT'S WHAT I'M GETTING AT. SO YOUR YEAR ONE COST IN A MIGRATION YEAR WILL BE SIGNIFICANTLY MORE, BECAUSE YOU WOULD HAVE TO PURCHASE SOME THINGS ON THE BACK END. AND I DO HAVE SOME SLIDES ABOUT THAT, BUT THERE'S, THERE'S RISKS THAT YOU STILL HAVE TO PAY FOR IN THE RUN OUT OF THE CLAIMS. LIKE, FOR EXAMPLE, IF I HAVE SURGERY IN NOVEMBER, THOSE CLAIMS MAY NOT BE TURNED IN BY THE TIME YOU'RE DONE AS A BOARD IN DECEMBER 31ST. AND SO SOMEBODY STILL HAS TO PAY THOSE CLAIMS, AND YOU STILL HAVE TO PAY MARITAIN TO ADJUDICATE THOSE CLAIMS AS YOUR THIRD PARTY ADMINISTRATOR. PLUS, YOU HAVE TO PAY STOP LOSS COVERAGE. I MEAN, YOU DON'T HAVE TO, BUT YOU WOULD BE EXPOSING YOURSELF TO THE ENTIRE RISK IF YOU DID NOT DECIDE TO PURCHASE WHAT WE CALL TLO, WHICH IS BASICALLY STOP LOSS FOR THAT RUN OUT PERIOD TO HELP CAP THOSE CLAIMS THAT COULD BE LARGE ON THE BACK END. AND TO BE FAIR, I REALLY AM TRYING TO DO MY BEST TO GIVE YOU COSTS. I THINK THE ADMINISTRATIVE AND GOVERNANCE PIECES THAT I JUST WENT THROUGH ARE ALL COSTS. WHAT WE'VE SEEN IN PRIOR MOVES IS THAT THOSE HAVE NOT BEEN INCLUDED IN THE ESTIMATE, BUT THEIR REAL COSTS.

AND SO THERE ARE PORTIONS OF THIS THAT GALLAGHER CAN DO. AND THEN THERE ARE PORTIONS OF THIS THAT I THINK THE FINANCE OFFICE WOULD HAVE TO CONTRIBUTE SOME FEEDBACK TO. AROUND HOW MANY STAFF MEMBERS DO YOU THINK REALISTICALLY, YOU CAN CAN DO IT WITH? WE CAN GIVE YOU WHAT WE SEE ACROSS THE STATE. BUT, YOU KNOW, THAT'S GOING TO BE REALLY DECIDED MORE HERE. I DO KNOW THAT YOUR CURRENT OFFICE IS HANDLING NOT JUST BENEFITS. THE HR TEAM IS IS DOING A LOT OF OTHER THINGS, DISCIPLINARY, A LOT OF OTHER THINGS. RIGHT? SO IT IS A BIG DECISION IN THOSE AREAS. THERE ARE SOME COSTS THERE. THE CHANGES YOU COULD MAKE EITHER WAY THOUGH ARE THE THINGS WE COULD MODEL. SO I THINK FOR US TO BE ABLE TO GIVE YOU A CREDIBLE NUMBER, WE WOULD NEED YOU TO TELL US HOW MANY THINGS DO YOU WANT TO CHANGE IN ONE YEAR? OR DO YOU WANT TO TAKE A MORE CONSERVATIVE APPROACH AND INCREMENTALLY LOOK AT CHANGES? YOU KNOW, MAYBE YOUR ONE, YOUR ONE BEING YOUR $50 INCREASE LAST YEAR FOR EMPLOYEE ONLY, YEAR TWO, MAYBE THAT NUMBER STAYS THAT NUMBER. BUT WE CHANGE PLAN DESIGN A LITTLE BIT.

OR MAYBE YOU CHANGE BOTH LIKE THE STATE'S LIKELY TO DO BASED ON THEIR CONSULTANT'S COMMENTARY. YEAH. MOVING FORWARD HERE VERSUS TWO TIER ADDING A COPAY PLAN. IF YOU WANT TO COLLECT SOME ADDITIONAL REVENUE, JUST LIKE THE STATE WOULD BE DOING IN THE WAY THAT THEY'RE. ADJUSTING. SO. THERE ARE CHANGES I WOULD NEED SOME FEEDBACK ON TO KNOW WHAT TO MODEL. AND THEN YOU MENTIONED WHAT HAVE WE SAVED? I THINK THAT THE REAL PHARMACY SAVINGS THAT WE HAVE SEEN. SO YOU'RE GOING TO SEE ABOUT, WE THINK 705,000 ROUGHLY IS WHAT WE'RE PROJECTING ON PHARMACY SAVINGS IN THIS CALENDAR YEAR. I KNOW THAT'S NOT 7 MILLION, BUT IT IS A MOVING OF THE NEEDLE. IN ADDITION, WE HAVE INSTRUCTED YOUR CLINIC VENDOR TO INTEGRATE

[02:00:05]

EVEN WHEN THE PREMIUM WENT UP A LITTLE BIT FOR THEM. SO JUST IN AGAIN, HEARING THE TOTALITY OF TONIGHT, AND I KNOW WE'VE TALKED ABOUT A LOT OF DIFFERENT THINGS, WE DO HAVE MANY MORE SLIDES. I MEAN, THAT WE CAN GO OVER AND CONTINUE. BUT I THINK THE WHAT WE'RE HEARING HERE IS, YES, I THINK WE'RE ALL IN AGREEMENT THAT THERE DOES NEED TO BE A BUDGET NUMBER. BUT WHAT I HOPE THAT THE BOARD IS HEARING IS THAT IT DOES. IT DEPENDS. A HEALTH INSURANCE IS A COMPLICATED TOPIC WITH A LOT OF LEVERS THAT CAN BE PULLED. AND IN ORDER FOR US TO BE ABLE TO ACCURATELY MAKE SOME OF THOSE PREDICTIONS TO WHERE YOU CAN MAKE DECISIONS FROM A BUDGET STANDPOINT THAT YOU'RE CONFIDENT WITH, WE ALSO NEED TO KNOW WHAT CHANGES ARE YOU WILLING TO MAKE TO THE PLAN, IF ANY? RIGHT. SO IT COULD BE NO CHANGES AT ALL. LIKE THAT'S WHAT WE'RE GOING TO GO WITH. IT COULD BE, HEY, WE WANT TO MAKE ALL THE CHANGES AND, AND DO A LOT OF THESE. WE WANT TO DO FOUR TIERS. WE WANT TO ADD THE, YOU KNOW, SOME CO-PAYS TO THE PLAN. SO THIS IS TELLING ME THAT THERE'S A LOT MORE ANALYSIS AND A LOT MORE WORK THAT WOULD NEED BEFORE YOU COULD MAKE A FIRM DECISION ON EITHER ONE. YEAH, WE KNOW THE PLAN. YOUR GUYS'S PLAN. WE KNOW IT'S A CADILLAC PLAN. WE KNOW WE KNOW THE COMPARISON. IT'S JUST OUR BIGGEST THING FOR THIS MEETING WAS JUST THE TOTALITY OF THE BUDGET. AND AND, YOU KNOW, I DON'T KNOW IF IF IT'S IT'S GETTING IN FRONT OF OUR TEACHERS AND SAYING, LISTEN, YOU KNOW, YOU HAVE THE STATE PLAN OR IT MIGHT BE POSSIBLE THAT WE MIGHT HAVE TO RAISE, YOU KNOW, ANOTHER 50 BUCKS OR ANOTHER HUNDRED BUCKS. BUT I GUESS WHAT MR. HOLMES IS WONDERING IS LIKE, WE JUST NEED TO KNOW WHAT THAT WHAT YOUR ESTIMATE IS BEFORE WE CAN EVEN START RECOMMENDING, HEY, CAN YOU LOOK AT THIS? CAN YOU LOOK AT THAT TO SEE IF WE NEED HOW MUCH MONEY WE NEED TO MOVE? I DON'T KNOW, I DON'T WANT TO SPEAK FOR YOU, BUT THAT'S WHAT I THINK THAT THAT YOU'RE LOOKING AT. AND THAT'S WHAT, WHAT WE'RE LOOKING AT BECAUSE WE ARE GOING INTO BUDGETS. AND SO WE WANT TO BE ABLE TO SAY, OKAY, THIS IS HOW MUCH WE NEED TO TO PLAN FOR. YEAH. AND THE LAST PROJECTION, BUT IT'S, IT'S FROM. THIS ONE. WELL, ACTUARIES DO EITHER ONCE OR TWICE A YEAR PROJECTIONS. YOUR ACTUAL, YOU KNOW, OUR TEAM DOES FOR YOU ALL.

AND WE CAN CERTAINLY ASK THEM TO DO A SPECIAL ONE FOR YOU THAT'S OFF OF THE NORMAL CYCLE.

OR YOU CAN RELY ON THE CURRENT ONE YOU HAVE IN 2025, YOU SPENT 6.9 MILLION MORE THAN THE AMOUNT THAT WAS IN YOUR BUDGET. BUT AGAIN, UNDERSTANDING THAT THAT BUDGET HAD NO INFLATIONARY INCREASE APPLIED TO IT FOR A GREAT MANY YEARS. SO IF WE WENT BACK AND WE WE WEREN'T YOUR

[02:05:04]

THAT'S THE, YOU KNOW, PART OF RETAINING THE CONTROL. AND AGAIN, THAT'S JUST ONE OF THOSE THINGS THAT IN YOUR DECISION MAKING PROCESS, I DON'T KNOW IF, IF THE WORD CONTROL HAS A DIRECT DOLLAR FIGURE TIED TO IT, BUT IT IS THINGS LIKE RETIREE COVERAGE THAT RIGHT NOW YOU HAVE FULL CONTROL OVER WHAT TYPE OF COVERAGE YOU, YOU OFFER TO YOUR RETIREES. WHEN YOU GO INTO AN ENVIRONMENT WHERE THE ACTIVE EMPLOYEES ARE ON A DIFFERENT PLAN. AND THEN I KNOW IT WAS MENTIONED, WELL, YOU CAN JUST OFFER YOUR, YOU KNOW, RETIREES A DIFFERENT PLAN. WELL, PART OF THE CHALLENGE WITH THAT IS NO INSURANCE COMPANY WANTS TO CREATE A SEPARATE PLAN FOR ONLY THE RETIREES. THAT WOULD MAKE THE COST OF THE RETIREE PLAN, YOU KNOW, PRETTY ASTRONOMICAL. SO IT WOULD BE LEFT UP TO THE INDIVIDUAL MARKETPLACE AND HAVING THEM GO OUT THERE. SO AGAIN, I MEAN, THERE'S THERE'S PROS AND CONS TO EVERYTHING. I WOULD SAY THAT TODAY YOU HAVE CONTROL OVER WHAT YOU DO WITH YOUR RETIREES. I THINK THAT IS A CREDIT. THE CREDITABLE YEARS OF SERVICE. I THINK THERE'S SOME QUESTIONS AROUND THAT AS WELL. YOU KNOW, TYPICALLY TO THE STATE HAS A TEARING SYSTEM TO WHERE BASED ON HOW MANY YEARS OF SERVICE YOU HAVE, THERE COULD BE SOME LEVEL OF A SUBSIDY THAT THE RETIREES EXPERIENCE. SINCE

[02:10:05]

AGAIN, I COULD BE WRONG. I DON'T THINK THERE WOULD BE AN ADDITIONAL SUBSIDY FOR THOSE PARTICULAR RETIREES, WHICH WOULD MEAN THAT THE COST OF THE PLAN WOULD STILL, ANYTHING EXTRA YOU CONTRIBUTE WOULD STILL BE ON THE SCHOOL BOARD. SO. YOU'RE ALSO YOUR BOARD POLICY THAT WE'VE GOT IT UP HERE. OF COURSE, YOU CAN GO BACK AND YOU CAN REVISIT THAT AS WELL. BUT YOU DO HAVE IN YOUR BOARD POLICY WHERE YOU'VE MADE SOME COMMITMENTS TO THE RETIREES. SO, YOU KNOW, YOU HAVE A DATE OF PEOPLE THAT WERE HIRED BEFORE JUNE 30TH. THEY GET, YOU KNOW, IF THEY MEET 30 YEAR REQUIREMENT, THEY GET ALL OF THEIR INSURANCE COVERED. IF IT WAS AFTER THAT DATE, YOU'VE MADE THE COMMITMENT FOR THOSE FOLKS PER YOUR POLICY, THAT THEY WOULD PAY THE SAME AS ACTIVE EMPLOYEES IF THEY HAD THEIR 30 YEARS OF SERVICE. THE STATE PLAN DID DRAW A LINE IN THE SAND A FEW YEARS AGO AND SAID, ANYBODY HIRED AFTER SEVEN ONE OF 2015, THEY'RE NO LONGER OFFERING COVERAGE TO ANYBODY, RETIREE COVERAGE TO ANYBODY HIRED AFTER THAT DATE. SO AGAIN, WE'RE ONLY 11 YEARS IN, NOT AS BIG OF A DEAL, BUT WE HAVE STARTED HEARING IT FROM OUR GROUPS WHO'VE HAD PEOPLE THAT HAVE COME ON WITH SECOND CAREERS, THAT HAVE COME ON LATER IN THEIR CAREER. THEY'VE WORKED NOW FOR TEN YEARS, AND THEY'RE RETIRING THINKING THAT THEY CAN GET COVERAGE AND THEY'RE THEY'RE SURPRISED WHEN THEY'RE TOLD, OH, I'M SORRY, YOU WERE HIRED AFTER SEVEN ONE 2015. SO THAT'S ANOTHER CONSIDERATION AS WELL WHEN WEIGHING OUT THE PROS AND THE CONS OF THE DECISION. WHEN THEY'RE 65 THEY CAN GO ON MEDICARE, OBVIOUSLY. SO THEY WOULD HAVE COVERAGE STARTING AT THAT AGE. THERE WOULD JUST BE ANY PRE 65 RETIREES THAT WOULD HAVE EXPOSURE ON THERE WHERE THEY GET THEIR INSURANCE. THEY'D HAVE TO FIGURE THAT OUT. ALL RIGHT. THE STATE HAS FOUR PLANS. SO ASSUMING EVERYBODY'S GOING TO ANY ONE PLAN TO DRIVE YOUR SAVINGS CALC IS I THINK A MISTAKE. SO IF WE SAY, OKAY, WE'RE GOING TO SAVE 6.9 MILLION. WELL, THAT WAS ASSUMING 100% OF THE PARTICIPANTS WENT TO THE STANDARD PLAN. WE KNOW IN THE REAL WORLD, WHEN THEY'RE PRESENTED WITH FOUR OPTIONS OF WHICH PLAN THEY'RE GOING TO MAYBE PICK, AND THAT'S GOING TO BE BASED ON A LOT OF DIFFERENT THINGS, ONE OF WHICH IS YOUR RATES. WE'VE TALKED ABOUT THIS A LITTLE BIT, BUT BUT IT'S THE SAVINGS NUMBER IS THE 6.9. I'M ABSOLUTELY CONFIDENT IS NOT A FIRST YEAR NUMBER. WE BELIEVE THAT YOUR RUN OUT COSTS, BASED ON CURRENT PROJECTIONS AND EVERYTHING WE KNOW YOU WOULD HAVE TO PURCHASE AND PAY FOR IN THE FIRST YEAR OF A TRANSITION WOULD STILL HIT BETWEEN ROUGHLY 3,000,005.7, BASED ON CALCULATIONS THAT WERE DONE IN MAY OF 25. SO THERE WOULD BE SOME INFLATIONARY LOAD FOR TODAY. BUT THAT'S THE WORK WE DID THIS TIME LAST YEAR FOR YOU, ROUGHLY. YOU WOULD HAVE TO PURCHASE THE T, L, O OR RUN THAT RISK ON YOUR OWN. SO TLO IS THAT STOP LOSS COVERAGE FOR LARGE CLAIMANTS AFTER TERMINATION. THAT THAT HAS NOT BEEN PROCURED YET. AND YOU HAVE YOU TYPICALLY WANT TO DO THAT, YOU KNOW, WELL IN ADVANCE OF THE TRANSITION DATE, BECAUSE THAT HAS TO BE NEGOTIATED AND BOUND. AND YOU HAVE TO KNOW WHAT THE PREMIUM IS. THAT WOULD BE A FACTOR THAT'S NOT IN THAT NUMBER ON THE LEFT SCREEN. THAT WOULD BE A REAL COST. IN ADDITION TO THE STAFF MEMBERS AND OTHER THINGS WE'VE TALKED ABOUT. SO THIS IS MORE OF THE DETAILS AROUND THE ADMINISTRATIVE WORK THAT WE'VE HIT IN A PRIOR CONVERSATION. IT'S JUST BREAKING IT OUT A LITTLE MORE. WE TALKED ABOUT THE VOTE. NOBODY SOMEBODY WHO DOES NOT CAST A VOTE COUNTS AS A NO. OKAY, SO THEY HAVE TO AFFIRMATIVELY VOTE IN FAVOR OF A MOVE TO THE STATE FOR IT TO COUNT. AND THE SAME WOULD BE TRUE IF YOU WERE TO EVER WANT TO LEAVE THE STATE PLAN. LIKE I KNOW, YOU KNOW, THAT'S THAT HAS BEEN A CHALLENGE IN THE PAST FOR DIFFERENT DISTRICTS THAT HAVE ACTUALLY WANTED TO LEAVE THE STATE PLAN. WE'VE WE'VE CONDUCTED A NUMBER OF THOSE.

AND, YOU KNOW, THE VOTE CAN BE A BURDEN JUST BECAUSE OF THE COMMUNICATION HURDLE AND THE TIMING OF THE BUDGET, MEANING YOU HAVE TO SET THE RATE CHART SOMETIMES BEFORE THE FINAL RATES ARE DECIDED BY THE STATE. AND SO THERE'S CONFUSION BY THE FOR THE EMPLOYEE. SO WHAT IS THE TIMELINE? I PUT YOU TOGETHER ONE THIS IS WHAT I WOULD RECOMMEND. I KNOW THERE WAS SOME DISCUSSION ABOUT IT EARLIER. I THINK A VOTE PRIOR TO SUMMER IS NOT LIKELY TO GO

[02:15:04]

THOSE ARE THE REAL NUMBERS. AND THEN AT LEAST THEN WE CAN HAVE A BUDGET DISCUSSION. AND I THINK IF WE STAY RIGHT, THEN IT'S SAYING THAT OUR BUDGET AMOUNT IS 33. AND THEN WE CAN WORK BACKWARDS INTO WHAT THAT MEANS IN TERMS OF ALL THESE OTHER ALL THESE OTHER COSTS AND, AND THE COST TO STAY OR GO OR WHATEVER. BUT, BUT AT LEAST FROM YOUR STANDPOINT, IF WE STAY, WE WOULD UNDERSTAND THAT THESE ARE THE POSSIBLE IF WE ADD TWO TIERS, OR WE DO THIS OR THAT, OR WE ADD COPAYS OR WHATEVER, WE CAN HELP TO CURB THE 33 BACK TO 30 MAYBE OR WHATEVER. YOU KNOW, I MEAN, THOSE ARE DISCUSSIONS WE'LL HAVE TO HAVE. BUT I JUST I THINK THE BOARD NEEDS TO KNOW IS WHAT DO WE THINK THAT TOTAL SPEND IS GOING TO BE? WE HAVE TO HAVE THAT NUMBER. WE HAVE TO HAVE SOME NUMBER IN THERE THAT WE CAN THEN WORK BACK IN ORDER TO FIGURE IT OUT, BECAUSE I FEEL LIKE THAT'S THE BIG IT'S THE BIG UNKNOWN FOR ME. AND I DON'T KNOW WHICH DECISION TO MAKE BECAUSE I DON'T KNOW WHERE. I MEAN, I KNOW WHERE I'M HEADING RIGHT NOW BECAUSE IT LOOKS LIKE THAT FROM A PURELY FINANCIAL SITUATION. AT LEAST I KNOW WHAT THAT IS. I DON'T KNOW WHAT OURS IS YET. SO THE ONLY CHANGE THAT WE'VE MODELED AND PRESENTED TO YOU ALL RECENTLY, THERE'S BEEN A BUNCH OF OTHERS, AND THERE HAVE BEEN A BUNCH OF WORKSHOP IDEAS DONE BEHIND THE SCENES THAT I DON'T THINK HAVE MADE IT TO A FULL BOARD WORKSHOP, BUT WE'VE DONE A SINGLE PLAN DESIGN CHANGE THAT IS ADDING A SECOND LOWER TIER OPTION OR LOWER PLAN DESIGN OPTION FOR THE EMPLOYEES TO CHOOSE IF THEY WANT IT OR NOT.

AND THEN WE'VE PREDICTED 20 TO 30% MIGRATION TO THAT OPTION. THAT'S A CONSERVATIVE ESTIMATE.

WE ALWAYS TRY TO GIVE YOU A CONSERVATIVE NUMBER, AND THEN THAT WAY, YOU KNOW, YOU'RE NOT LEFT IN THE SURPRISE SEAT, IF AT ALL POSSIBLE. THAT'S MAINTAINING TWO TIER STRUCTURE.

[02:20:03]

I, I AM MORE THAN WILLING TO GIVE YOU. AND I THINK WE HAVE BEEN GIVING YOU ALL MR. SEBASTIAN CAN CAN VERIFY THIS TOO, BECAUSE IT'S BEEN MORE MR. FINNEY AND THE TEAM, BUT THE FINANCIAL TEAM. BUT WE'VE BEEN GIVING YOU PROJECTIONS AS A DISTRICT AT LEAST ONCE A YEAR, I BELIEVE, MAYBE EVEN TWICE A YEAR FOR FOR APPLES TO APPLES STATUS QUO. WE DIDN'T CHANGE ANYTHING. WE DIDN'T TAKE ANYTHING FROM THESE EMPLOYEES. IT DID NOT INCLUDE. THINGS LIKE, I THINK YOUR COST OF THE CLINIC IS BEING PRICED OUT IN A SEPARATE NUMBER, YOU KNOW, ON TOP AND YOUR STAFFING COSTS, THINGS LIKE THAT. WE CAN ADD ALL THOSE THINGS IN AND GIVE YOU A 27 NUMBER OR 26 TO 27 FISCAL YEAR NUMBER. BUT WE NEED TO KNOW WHAT TO TAKE FROM THE EMPLOYEES. MR. HELLMAN, DID I UNDERSTAND? AND I'M SORRY IT'S GETTING LATE. I'M TIRED. YOU WANT THEM TO MODEL EXACTLY AS IT IS RIGHT NOW, WHAT THE TOTAL SPEND IS GOING TO BE. SO THEN WE CAN GO BACK AND DECIDE THOSE OTHER THINGS TO CHANGE AND PROJECT. BECAUSE WE NEED A STARTING POINT. WE NEED THAT THING THAT YOU'VE PROVIDED EVERY YEAR THAT WE DON'T HAVE RIGHT NOW. THAT'S WHAT. YEAH, EXACTLY. I'M JUST LOOKING AT WHAT'S OUR TOTAL SPEND ON HEALTH FUND? WHAT IS IT AND WHAT IS IT? WHAT IS OUR BUDGET REALLY NEED TO BE? BECAUSE WE'VE BEEN KICKING THE CAN FOR SO LONG. SO WHAT DOES IT NEED TO BE? SO THEN WE CAN MAKE MORE INFORMED DECISIONS ABOUT STAYING GOING OR ADDING MORE, YOU KNOW, TRYING TO WORK THAT BUDGET NUMBER. I'M JUST TRYING TO GET THAT. WHAT'S THAT CEILING NUMBER LOOK LIKE FOR US FOR NEXT YEAR? AND IT MAY NOT BE, IT MAY BE RIGHT, BUT AT LEAST IT'S, IT'S BASED ON SOME PREDICTIVE DATA ON THE TOTAL TOTAL COST OF THE FUND. SO SINCE WE'RE IN A WORKSHOP AND WE CAN'T VOTE AND DIRECT, I THINK THAT MAKES SENSE TO ASK FOR LIKE WHAT YOUR PROJECTION IS LIKE YOU'VE DONE EVERY YEAR. AND THAT GIVES US A STARTING POINT. AND THEN WHEN WE'RE IN A MEETING THAT WE CAN VOTE, WE CAN SAY, OKAY, GIVEN THIS INFORMATION THAT WE HAVE NOW, WE'D LIKE TO COME BACK AND SEE IT ADJUSTED WITH FOUR TIERS AND THEN START MAKING CHANGES. AND IT WITH THE ANTICIPATION OF MAYBE JANUARY OR SOMETHING LIKE THAT. YEAH, THAT MAKES SENSE.

WE'RE VERY PLEASED TO DO THAT FOR YOU ALL AS YOUR CONSULTANT. HAPPY TO DO IT. IF WE WERE ASKING WHAT SHOULD WE HAVE HAD IN OUR BUDGET FOR 2025, IT WOULD HAVE BEEN 28,758,000 BASED ON WHAT YOU ACTUALLY SPENT. IF WE WERE TO HAVE, YOU KNOW, LOOKING AT THE NUMBER IN THE END OF 25, PROJECTING FOR 26, RIGHT? IT'S PROBABLY WOULD HAVE BEEN A LITTLE BIT MORE THAN THAT THAT WE GAVE YOU. I THINK IT WAS, IT WAS LIKE 29 PLUS MILLION. I'M SORRY, WHAT I'M LOOKING AT 31 TO 32. THANK YOU. SO THAT GIVES YOU THE AMOUNT OF GROWTH ON THE PROJECTION THAT WE GAVE. I APOLOGIZE. I DON'T HAVE THAT NUMBER. I DIDN'T KNOW THAT'S WHAT YOU NEEDED RIGHT THIS MINUTE. SO THAT'S THAT THAT'S I THINK WHAT WE'RE GETTING AT THAT WILL HELP US MAKE DECISIONS ABOUT WHAT WE'RE GOING FINANCIALLY. YEAH. SO DO YOU WANT US TO ASSUME ANY OTHER REMOVAL OF BENEFITS FROM EMPLOYEES IN THE MODEL? OKAY.

WE'RE NOT THAT WE'RE NOT AT THAT POINT RIGHT NOW. I THINK THIS IS STILL THE INTRODUCTORY PHASE, AND WE STILL HAVE TO GET BACK IN FRONT OF OUR CONSTITUENTS AND LET THEM KNOW.

AND, YOU KNOW, ESPECIALLY IF YOU'RE WATCHING ANY OF THESE TIMELINES MENTIONED, ARE ALL, YOU KNOW, NOTHING'S IN STONE. SO THIS IS ALL JUST THEY'RE JUST IDEAS RIGHT NOW. SO WE WANT TO GET BACK IN, HEAR FROM THEM TO SEE WHAT THEY WOULD LIKE, BECAUSE THERE'S SO MANY MOVING PARTS IN OUR DISTRICT RIGHT NOW WITH THE NEW DIRECTOR. AND THERE'S BUT, BUT WE STILL HAVE TO BE STEWARDS WITH THE MONEY. SO YES, I APPRECIATE, YOU KNOW, I'M TRYING TO CLOSE THIS UP, BUT I APPRECIATE, YOU KNOW, ALL THE INFORMATION THAT YOU GUYS HAVE GIVEN US UP TO THIS POINT AND WHAT IT SEEMS LIKE YOU'RE WILLING TO WORK WITH US WHEN WE GET THAT NUMBER, GIVE US OTHER OPTIONS. IF WE WANT TO UP SOMETHING, TAKE SOMETHING AWAY OR, YOU KNOW, SO I APPRECIATE THAT AND HAPPY TO DO IT. WE, WE HAVE TOLD NUMEROUS OF OUR CLIENTS THAT THEY SHOULD GO TO THE STATE HEALTH PLAN WHEN WE HAD THEIR PRIVATE PLAN AND WE WERE BEING PAID ON THEIR PRIVATE PLAN, WE WE PRIDE OURSELVES IN THAT HONEST OPINION WHEN IT'S TIME.

SO YOU YOU HAVE MY WORD THAT THAT'S WHAT YOU'LL GET. AND THEN JUST ALSO THINK. MR. THANK YOU SO MUCH FOR BEING HERE TONIGHT. LIKE WE REALLY APPRECIATE IT TAKING TIME OUT OF YOUR DAY AND DON'T STOP YET. I HAVE ONE MORE QUESTION. I'M SORRY. I DON'T KNOW WHO I'VE GOTTEN THIS FROM BEFORE, MR. LUTTRELL. IT MIGHT HAVE BEEN YOU. IT MIGHT HAVE BEEN YOU GUYS. BUT I'VE SEEN IN THE PAST A GRID THAT SHOWED A COMPARISON OF WHAT DIFFERENT DISTRICTS PAID, WHAT THE EMPLOYER CONTRIBUTION. WHERE DO I GET THAT? I WOULD LIKE TO SEE THAT GOING INTO BUDGET. YEAH, IT WOULD BE DATED, OBVIOUSLY, BECAUSE EVERYONE'S DOING WHAT

[02:25:03]

WOULD YOU BE ABLE TO DO THAT AS WELL? THANK YOU VERY MUCH. I WAS GOING TO SAY, IN THE SENSE OF FAIRNESS, SINCE MISS CROSBY WENT FIRST, DO WE WANT TO GIVE HER A COUPLE MINUTES TO MAKE HER FINAL POINTS BASED ON WHAT WE'VE HEARD, OR DO YOU DO YOU HAVE ANYTHING ELSE YOU'D LIKE TO ADD? I MEAN, I GUESS JUST IN CLOSING, I CAN MAKE A FEW REMARKS, BUT WITH THE INTENTION THAT IT SOUNDS LIKE WE BOTH HAVE SOME HOMEWORK TO DO BEFORE WE COME BACK, AND THAT'S FINE.

THANK YOU FOR THAT. YOU GOT IT ALMOST ALL THE WAY RIGHT. BUT THERE WERE SOME THINGS IN THERE THAT PROBABLY NEED SOME FURTHER CLARIFICATION FROM US, RIGHT? IF YOU'RE GOING TO GET UP HERE AND TALK ABOUT OUR PRODUCT, LIKE AT LEAST LET US REVIEW THE SLIDES OR LIKE HAVE SOME COMMENTS AND FEEDBACK ON SOME OF THOSE THINGS. A LOT OF IT WAS, WAS ACCURATE, BUT THERE WERE SOME THINGS THAT WERE NOT ALL THE WAY RIGHT THAT YOU PROBABLY WANT TO EXPLORE FURTHER, BUT WE'RE WELCOME TO, YOU KNOW, THE CHANCE TO PRESENT AGAIN FURTHER AND CLARIFY SOME OF THOSE POINTS. BUT ALSO, YOU KNOW, THE STATE MAKES DATA DRIVEN DECISIONS AND, YOU KNOW, MAKES PLAN DESIGN CHANGES BASED ON WHAT OUR MEMBERS ARE, ARE SAYING AND THINGS LIKE THAT.

BUT THANK YOU FOR THE OPPORTUNITY AND HAPPY TO REVIEW THE SLIDE DECK AND MOVE FORWARD.

LIKE I SAID, THANK YOU GUYS SO MUCH BECAUSE YOU ARE OUR WORKFORCE MEANS SO MUCH TO US.

SO WE'RE WILLING TO INVEST THE TIME, AND WE WANT TO THANK YOU GUYS FOR BEING ABLE TO INVEST THAT TIME AS WELL. BECAUSE AT THE END OF THE DAY, YOU KNOW, WE GOT TO TAKE CARE OF TAKE CARE OF THEM, ESPECIALLY WHEN IT COMES TO THEIR MEDICAL NEEDS AND ANYTHING ELSE. IF NOT, THANK YOU GUYS SO MUCH. REMINDER WE HAVE A MEETING TOMORROW, 6:06 P.M. IN THE CAFETERIA. WE'RE GOING TO HAVE THE TOP FIVE VIEW A MEET AND GREET. SO

* This transcript was compiled from uncorrected Closed Captioning.