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Human Resources
Action Item
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DATE: Tuesday, May 16, 2006
TO: School Board Members
FROM: MaryEllen Elia, Superintendent
SUBJECT / RECOMMENDATIONS
Approval of Health Insurance Renewal for Calendar Year 2007.
EXECUTIVE SUMMARY
A review of current health insurance market conditions identified no substantial changes in the Tampa Bay area, except for double digit rate increases driven by medical trend and employers’ claims experience. Staff directed Aon Consulting, Inc., the School District's health insurance broker/consultant, to negotiate rates and plan designs with Humana and report back to the Employee Benefits Committee (Attachment A). Humana’s original proposal required a 14 percent increase. Subsequent negotiations resulted in a final proposal with a 5.7 percent overall increase and included some changes to the HMO-IPA plan (Attachment B). Following input from the Employee Benefits Committee, the Superintendent recommends:- Accept the Health Insurance Renewal proposed for 2007.
- Continue School Board funding level at HMO-IPA rates across all plans for eligible employees.
- Continue $20 per month credit to employees enrolled in the employee-only Coverage 1st Plan, applied to the employee’s choice of School District pretax benefits plans.
- Continue $20 per month credit to employees enrolled in the employee-only High Deductible Health Plan (HDHP), applied to the employee’s choice of School District pretax benefit plans. (Exception: Federal law prohibits participation in Flexible Spending Accounts (FSAs) to owners of Health Savings Accounts (HSAs).
- Continue to allow employees who have other health insurance coverage to opt-out of the School District’s health plans and receive up to a $720 credit for the year, applied to the employee’s choice of School District pretax benefits plans.
- Approve the monthly and per pay health insurance costs (Attachment C).
ANNUAL DISTRICT GOAL(S) AND CRITICAL SUCCESS FACTOR(S)
All district goals and critical success factors.
FINANCIAL IMPACT (Budgeted: Yes)
Based on projected enrollment for 23,521 employees, the estimated School Board cost for Plan Year 2007 (1/1/07-12/31/07) is $108,335,739.
EVALUATION
Health insurance is renewed annually.
SUBMITTED BY:
Deborah M. Henry, Manager of Employee Benefits & Insurance
Richard M. Martinez
General Manager, Employee Relations/Employee Benefits
(813) 272-4227
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Daniel J. Valdez
Deputy Superintendent
(813) 272-4166
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3.03
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Hillsborough County Public Schools (Florida) * Mtg.#20060516_176 * Section E Item# 3.03
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