Approve Health Insurance Renewal for 2009

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 13.77 percent increase. Subsequent negotiations resulted in a final proposal with a 7.8 percent overall increase (Attachment B). Attached is the monthly and per pay health insurance costs (Attachment C).

• Change School Board funding to Staff HMO level across all plans as follows: Board funds monthly Staff HMO rate minus $10 for employee-only and employee plus one tiers; Board funds one-half of monthly Staff HMO rate for family tier; Board funds 225 percent of the monthly Staff HMO employee-only board paid amount for two BPI tier (two married board employees enrolled in family coverage).
• Eliminate the $20 per month credit to employees enrolled in the employee-only tier of the Coverage 1st Plan.
• 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.

Demonstrate best financial practices.

Based on projected enrollment for 24,964 employees, the estimated School Board cost for Plan Year 2009 (01/01/09-12/31/09) is $121,097,001.

Health insurance is renewed annually.