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Sample Company 5 Year Benefits Strategy <br />Introduction <br />At year-end 2010, Sample Companys health care costs totaled $581 per employee per month <br />(PEPM) and 5 years later actual 2014 plan year costs total $1,128 PEPM. From 2010 to 2014, the <br />Sample Company has experienced an average 12.1% increase per year. Over the same 5 year time <br />period, the Nation experienced an average 8.3% increase per year. Although, the National trends <br />were lower, the Sample Company outperformed the Nation in terms of total PEPM medical plan <br />in all years except for the 2014 plan year which was driven by a significant increase the number <br />of individual catastrophic claimants. While recent months have experienced more positive <br />trending back below National PEPM cost, the 2014 and 2015 claims experience has significantly <br />exceeded budget projections and appropriate adjustments to future funding is warranted. <br />Health care trend expectations combined with the continually changing regulatory horizon make <br />it critical for Sample Company to craft a long term strategic plan to maintain a competitive and <br />affordable benefits package for its employees. The 5 Year Benefits Strategy is a working <br />document and will be used as a guide for short and long term Health and Welfare benefits <br />considerations. <br />SAMPLE COMPANY PEPM MEDICAL PLAN COSTS <br /> <br /> $1,400 <br /> $1,240 <br /> $1,159 <br /> $1,128 <br /> $1,200 <br /> $1,063 <br /> $1,012 <br /> $964 <br /> $892 <br /> $1,000 <br /> $805 <br /> $1,116 <br /> $800 <br /> $1,011 <br /> $874 <br /> $782 <br /> $600 <br /> $621 <br /> $581 <br /> $400 <br /> $200 <br /> $- <br />2010201120122013201420152016 <br />(Est.)(Proj.) <br />ActualNationalIPS Projected <br /> <br />The establishment of and any amendments to the 5 Year Benefits Strategy will take into account <br />Sample Company Compensation Philosophy. Key Guiding Principles and Objectives stated <br />within the Philosophy with respect to Health and Welfare benefits include: <br /> Utilize a fair and equitable compensation system that will assist the Sample Company in <br />attracting, hiring, developing and retaining a championship workforce. <br /> Provide competitive group health benefits programs for all current and future full-time <br />. <br /> <br /> <br />