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:
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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 |
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A 4.07 | ||
Hillsborough County Public Schools (Florida) * Mtg.#20150728_697 (Board Meeting followed by Public Hearing) * Section A Item# 4.07 |