ARIZONA DEPARTMENT OF ADMINISTRATION
OFFlCE OF THE DIRECTOR
100 N 1 5 AVE,~ ~ SUITE 401 PHOENIX, ARIZONA 85007 (602) 542-1500
December 22,2006 The Honorable Ken Bennett President Arizona State Senate 1700 West Washington Phoenix, Arizona 85007 The Honorable James Weiers Speaker Arizona House of Representatives 1700 West Washington Phoenix, Arizona 85007 Dear Senator Bennett and Speaker Weiers: In accordance with ARS 5 38-651(L), the following report is submitted regarding the impact of participating political subdivisions on the State's cost of health insurance. There are currently three participating subdivisions enrolled in the Arizona Department of Administration's (ADOA's) administered health plan: Primavera Technical Learning Center, Inc. (dba Primavera Technical Learning Center and Primavera Online High School), City of Springerville, and the City of Cave Creek. These three groups' memberships in the ADOA plan pre-date the transition to self insurance in 2004. For these three organizations, there are a total of 92 employees enrolled in the State Health Insurance Trust Fund programs. The paid FY 2005 - 2006 Medical claims for these three subdivisions averaged $6,056.30 Per Employee Per Year (PEPY). This claim rate is consistent with our current overall active members PEPY rate of $6,424.00. ADOA's actuary has reviewed this information and based on the data herein, has concluded that these three political subdivisions pose no greater risk to the plan than our active employees. If you have any questions related to this report, please contact me directly at (602) 542-1500, or Phil Hamilton, Benefits Manager, at (602) 542-4788. Sincerely,
William Bell Director
Cc: Jim Apperson, Governor's Office of Strategic Planning and Budgets Richard Stavneak, Director, JLBC
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