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City Council May 15, 2012 ACAP
1.
City of San
Angelo ©2012 ACAP Health Consulting Confidential-Not for Distribution ©2012 - Confidential-Not for Distribution
2.
COSA’s - The
2012 Plan Year The Charge: • Lower Overall Costs • Maintain Benefits • No Increase to the Employee/Employer Funding ©2012 ACAP Health Consulting ©2012 - Confidential-Not for Distribution Confidential-Not for Distribution
3.
COSA’s - The
2012 Plan Year The Challenge: • Health Risks of Employees Declining • Procurement Process Showed Marginal Savings – Insurance Carriers’ Network Discounts Similar at 58% – Administrative Costs Not Enough to Offset Projected Claim Cost Increase – No Administrator Able to Deliver Lower Costs ©2012 ACAP Health Consulting ©2012 - Confidential-Not for Distribution Confidential-Not for Distribution
4.
ACAP Health Engaged •
Former Insurance Executive with contracting knowledge • Data warehouse to assess physician/hospital performance • Based on the knowledge of the providers’ current costs: – First Step: Contacted hospitals’ CEOs on COSA’s objectives – Second Step: Requested fixed cost financial arrangement – Third Step: Analyzed the hospitals’ contracts – Finally: Resolved financial outliers to identify best financials ©2012 ACAP Health Consulting ©2012 - Confidential-Not for Distribution Confidential-Not for Distribution
5.
ACAP Health Engaged •
Selection of Community resulted in a projected 35% facility cost savings from current • ACAP’s paid on a results-based model - % of actual savings ©2012 ACAP Health Consulting ©2012 - Confidential-Not for Distribution Confidential-Not for Distribution
6.
ACAP’s Next Steps •
Must address underlying health risks of COSA’s population • Analyze claims and biometric data to identify the right interventions to avoid catastrophic claimants • Work with Community to build a more connected Care Pathway for the individual ©2012 ACAP Health Consulting ©2012 - Confidential-Not for Distribution Confidential-Not for Distribution
7.
ACAP’s Next Steps •
Create an Accountability Model for the physicians – Improve the Employees’ Health thru Wellness – Close Clinical Gaps in Care for the Employees – Better Connection with Specialists and the Hospital • Additional savings available through an accountable physician ©2012 ACAP Health Consulting ©2012 - Confidential-Not for Distribution Confidential-Not for Distribution
8.
Request • Health Plan
is realizing savings today • Year to date, we estimate the plan has saved over $250,000 • The health fund reserves are healthy • Seeking approval to contract with ACAP for services rendered on a shared savings basis • Need assistance from ACAP to address additional shared savings opportunities ©2012 ACAP Health Consulting ©2012 - Confidential-Not for Distribution Confidential-Not for Distribution
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