Approve Health Insurance Renewal for 2011. (Attachments Included)

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 Health Insurance Committee (Attachment A). Human’s original proposal required a 20.3 percent total plan increase; however, subsequent negotiations resulted in a final proposal for a 14.9 percent total plan increase (Attachment B). A chart is attached identifying the monthly costs for both the Board’s and employees’ costs (Attachment C).

• Change the Board’s funding as proposed.
• Add a CoverageFirst “Local” plan while continuing to offer the CoverageFirst “National” plan.
• Allow active employees to enroll in the High Deductible Health Plan (HDHP).
• 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 benefit plans.
• Continue to offer retirees the High Deductible Health plan (HDHP) option.

* Demonstrate best financial practices

Based on projected enrollment for 24,672 employees, the estimated School Board cost for Plan Year 2011 (01/01/2011-12/31/2011) is $129,068,731.

Health insurance is renewed annually.