HCPS FL Logo Human Resources
Action Item
DATE: Tuesday, July 28, 2015
TO: School Board Members
FROM: Jeff Eakins, Superintendent
SUBJECT / RECOMMENDATIONS
Approve the Health Insurance Renewal for 2016
EXECUTIVE SUMMARY

Staff directed the School District’s health insurance broker/consultant, Aon Hewitt Consulting, Inc. (Aon) to negotiate rates and plan designs with Humana and report back to the Employee Benefits Health Insurance Committee (Attachment A). Humana’s initial renewal offering required a 17.9 percent increase. Aon’s initial negotiations with Humana resulted in a decreased proposal of 13.5 percent. Subsequent negotiations among Aon, Humana, and Employee Benefits staff resulted in another decrease to 11.5 percent with the inclusion of a risk sharing agreement. Final negotiations resulted in some plan design changes (Attachment B) and a proposal from Humana for a 6.97 percent increase, which includes the increase of $0.13 per employee per month requested by Aetna, the district’s Employee Assistance Program (EAP) provider. After increasing the annual Board contribution for opt-outs by $180 each, the final proposal requires a Board increase of 7.35 percent or $10,533,812.  A chart is attached identifying the monthly costs for both the Board’s and the employees’ costs (Attachment C). The Committee recommends the School Board continue its relationships with Humana and Aetna and accept the proposed 2016 health insurance renewal. In addition to the Board's funding as proposed, highlights of the 2016 renewal include:

  • Employees who have other group health insurance coverage may opt-out of the District’s plan and receive up to a $900 credit for the year, applied to the employees’ choices of District pretax benefit plans
  • Eligible retirees may participate in the program at 100% of the total premium cost
  • Humana Vitality Wellness Program
  • Fees required for the Affordable Care Act (ACA) (approximately $6.1 million)
  • ESE Unique Needs Aides and 1:1 aides will cost an additional $1,402,872 to be paid by ESE funding
STRATEGIC OBJECTIVES
All Strategic Objectives
FINANCIAL IMPACT (Budgeted:  Yes)
Based on projected enrollment of 25,432 employees, the estimated School Board’s cost for its Health Insurance Program for Plan Year 2016 (01/01/2016-12/31/2016) is $153,824,309. 
EVALUATION
Health insurance is renewed annually.
SUBMITTED BY: 
Deborah M. Henry   Stephanie F. Woodford
General Manager of Employee Benefits
(813) 272-4665
  Chief Human Resources Officer
(813) 272-4166
    A 4.07
Hillsborough County Public Schools (Florida) * Mtg.#20150728_697 (Board Meeting followed by Public Hearing) * Section A Item# 4.07