Staff directed the School District's health insurance broker/consultant, Aon Hewitt Consulting to negotiate rates and plan designs with Humana and report back to the Employee Benefits Health Insurance Committee (Attachment A).  Humana's original proposal required a 15.86 percent total plan increase; however, subsequent negotiations resulted in a final proposal for a 3.7 percent total plan increase (Attachment B).  The monthly costs for both the Board's and employees' costs will be determined at a later date.  The Committee recommends the School Board continue its relationship with Humana and accept the proposed 2012 health insurance renewal, which includes the following:

• Continuation of current plans - no benefit "take-aways" or changes.
• New $5 copay for Level One diabetic supplies.
• Humana provided:  performance guarantees, additional on-site representative, local medical director, and HCPS-dedicated financial analyst.
• Costs associated with Federal Health Care Reform.

Based on projected enrollment of 24,463 employees, the estimated overall cost for Plan Year 2012 (01/01/2012-12/31/2012) is $5,852,645 greater than Plan Year's 2011 premium (after adjustment for enrollment changes).  However, Humana's 2012 proposal is actually $1,716,097 lower than the health insurance renewal approved for 2011 (before adjustment for enrollment changes).