Approval of Health Insurance Renewal for 2008.

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 14.2 percent increase. Subsequent negotiations resulted in a final proposal with a 7.2 percent overall increase (Attachment B). Following input from the Employee Benefits Committee, the Superintendent recommends:

• Accept the Health Insurance Renewal proposed for 2008.
  
• 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 benefit 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 benefit plans.


• Approve the monthly and per pay health insurance costs (Attachment C).
  
  

All District Goals and Critical Success Factors.

Based on projected enrollment for 24,936 employees, the estimated school board cost for Plan Year 2008 (1/1/08-12/31/08) is $119,902,288.

Health insurance is renewed annually.