Approve Health Insurance Renewal for 2010.

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 Health Insurance Committee (Attachment A). Humana’s original proposal required a 10.75 percent total plan increase; however, subsequent negotiations resulted in a final proposal for a 3.1 percent total plan increase (Attachment B). A chart is attached identifying the monthly costs for both the Board’s and employees’ costs (Attachment C).

• Change the Board’s funding as proposed.
• 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.
• Continue to offer retirees the High Deductible Health Plan (HDHP) option.

* Demonstrate best financial practices

Based on projected enrollment for 24,607 employees, the estimated School Board cost for Plan Year 2010 (January 1, 2010 - December 31, 2010) is $120,412,040.

Health insurance is renewed annually.