2. Our Solution
The Main Benefits Are:
• Predictable Spending On Healthcare Liabilities For 3 Years
• Prepaid Healthcare For 3 Years
• Surplus Fund Moving Forward
2
4. Flow of Funds Diagram
Trust Certificates
Flow of Funds Diagram-
Trust Certificates Cash Out
Trust Agreement
“Trust”
•All cash invested in accordance with
established investment policy
•No cash disbursed for claim payments
or administrative fees unless coverage
ratio adequate
Debt Service
Claim Payments
Administrative
Fees
Cash Proceeds
From Loan
Employer
Monthly
Remittance
Payments
Cash In
4
Interest Income
5. 55
Advanced Funding Model Self Insured
Employer’s Obligation
Remittance = $ 68,096,486
Fixed for 36 Months
36-Month Spend
$2,451,473,512
Fully Collateralized
‘Aaa’ Rated Grantor Trust
Issues Debt
Trust Pays
Principal
& Interest
Variable
Costs
Fixed
Costs
Variable Costs = 85 to 95%
Fixed Cost = 5 to 15%
Surplus = 0 to 25%
FIXED Financing Rate FIXED
Investment Rate
2.00% 2.50%
Investment
Surplus = $196 Million
Risk Trend +$108 Million
$304 Million
Years 4-6
Tax-Free
Rolling Surplus
Budgetability / Predictability
Arbitrage (Investment Opportunity)
Non-Balance Sheet – Footnoted on P & L
Current IBNR removed from Balance Sheet
$2,563 Billion
7. 77
Adjusted Remittance with Arbitrage
Compatibility Model
$182,020,506
$230,730,218
$197,402,520
$189,711,513 $192,275,182
$199,966,189
$210,220,866
$225,602,880
$240,984,895
$240,984,895
$235,857,557
$150,000,000
$160,000,000
$170,000,000
$180,000,000
$190,000,000
$200,000,000
$210,000,000
$220,000,000
$230,000,000
$240,000,000
$250,000,000
Q310
Q410
Q111
Q211
Q311
Q411
Q112
Q212
Q312
Q412
Q113
Q213
With a Lending Rate of 2% and the Investment Return to
the Trust at 2.50%
Income generated to the trust is $196 Million.
Total Spending Projection $2.255 Billion - $196 Million Returned to the Trust
8. 88
Data Directed Healthcare Trend Shift®
Management
Data Analytics & Data Directed Healthcare Trend Shift®
Management
OGR’s partners have run Analytics against a big part of our Trillion Dollars of Healthcare
Claims Data Base
With Oversight From:
Dr. Mark Percival, Managing Partner of the Trend Shift ®
Resources, (a PFR
Company).
Erik Watts, Chairman of Health Data Resources (a PFR Company).
Potential to Reduce the $460 Million spend at Delta by over $200 Million dollars.
Health Data Resources and LifeStrive®
have products that achieve this result.
9. 99
Data Directed Healthcare Trend Shift®
Management
Phase 1: Data Analytics
It’s all about the important data you have----Claims Data,
"The Data you have is Important, the Data you don't have is Vital".
Companies like Delta are paying approximately 22% of their claims cost for
Physician Visits
Labs
Pathology
This could equate to $460 Million over 36 months for Delta Airlines.
10. 1010
Data Directed Healthcare Trend Shift®
Management
Phase 2: Data Directed Healthcare Trend Shift®
Management
The Milken Institute provides some interesting statistics
Approximately 70% of all physician office visits are unnecessary – with phone access
The Data Directed Healthcare Trend Management Process of One Global is:
Collect
Protect
Utilize
Potential to Reduce the $460 Million spend at Delta by over $200 Million dollars.
OGR uses “Data Directed Trend Shift®
Management", to work toward Reverse Trend
Goal: Achieve Risk Trend Reversal in future years.
11. 1111
Data Directed Healthcare Trend Shift®
Management
Phase 3: Trend Shift®
Results
$182,020,506
$225,602,880
$230,730,218
$210,220,866
$197,402,520
$240,984,895
$235,857,557
$240,984,895
$189,711,513
$199,966,189
$192,275,182
$150,000,000
$160,000,000
$170,000,000
$180,000,000
$190,000,000
$200,000,000
$210,000,000
$220,000,000
$230,000,000
$240,000,000
$250,000,000
Q310
Q410
Q111
Q211
Q311
Q411
Q112
Q212
Q312
Q412
Q113
Q213
Data Directed Trend Shift System
Data Analytics Combined with
Our Health and Risk Trend Data Management
System can bring additional dollars to the Trust.
Projection = $108 Million
Total Spending Projection $2.147 Billion Million - $108 Million Returned to the Trust
13. 1313
Trend Expectations Compared to One
Global Model
Prior 36 Month Spend ($1,700,000,000) *Assumption
Medical Inflation Factor % 8.00%
3 YR Projection Total ($2,563,669,094)
OGPFR 3 YR Total (Remittance Payments) ($2,451,473,512)
Difference +$112,195,582
Surplus +$196,075,125
Claim Audit & Data Analytics +$5,526,780
Health and Risk Trend Data Management System +$102,612,890
Total Returned to the Trust +$304,214,793
Net 36 Month Spending ($2,147,258,719)
Prior Period 36 Month Spending ($1,700,000,000) *Assumption
Increase/(Decrease) Over Prior Period +$447,258,719
Percentage Increase Over Prior Period 20.83%
Net Trend 6.25%
18. Summary
The One Global Funding Model is strategically designed to address the liabilities found
in
• Fully Insured Benefit Plans
• Self Funded Employers (private and public)
• Worker’s Comp Programs
• Other Post Employment Benefits (OPEB)
Benefits of the OGR Funding Model:
• Establishes predictable spending for three years...not thirty days
• Measured savings in both the variable and fixed cost environments
• We establish a level monthly remittance/premium equivalent that best fits your
cash flow needs
• Use of the capital market to pre-fund healthcare and workers' compensation
expenditures in three-year increments
• Unlike "letters or lines of credit" the OGR Funding Model does not put your
assets at risk
• Investment income earned inside of Trust
18
