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Escambia Education Association Union of Escambia ESP. ECSD Public Hearing Insurance Issues September 19, 2011. Why we are here:. Projections show a funding deficit to the trust. Plan had a bad year. Committee charged with finding a solution. District said NO MORE FUNDS AVAILABLE.

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Escambia Education Association Union of Escambia ESP

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Escambia Education AssociationUnion of Escambia ESP

ECSD Public Hearing

Insurance Issues

September 19, 2011


Why we are here:

  • Projections show a funding deficit to the trust.

  • Plan had a bad year.

  • Committee charged with finding a solution.

  • District said NO MORE FUNDS AVAILABLE.

  • Consequently, the committee was forced to design a plan that places the increases squarely on the backs of the employees.


That Plan:

  • Proposed placing 87% of the burden on employees.

    • 4.66 million in increased premiums

    • 7.66 million in plan changes.

    • A total of a 12.32 million dollar hit

  • 8% was placed on the District.

    • 1.1 million toward the reserves.

  • Retirees have a 5% increase.

  • Employees rejected the proposal 94% to 6%.


What Imposing This Plan Will Mean to Employees


HSA “Free” Plan

  • Employees must pay 100% of expenses until $3,000 deductible is met.

  • Then they pay 20% of all costs up to a total of $6,000.

  • There are no:

    • Physician visit co-pays

    • Urgent Care co-pays

    • Emergency room co-pays

    • Prescription co-pays


HSA’s Possible Impact on Employees

*according to Florida Department of Education 2010-2011 year


Base HRA Plan’s Premiums Impact on Employees

*according to Florida Department of Education 2010-2011 year


Base HRA’s Impact on Employees

*according to Florida Department of Education 2010-2011 year


HRA 500 Impact on employees

*according to Florida Department of Education 2010-2011 year


National Average

  • According to Consumer Expenditure Survey conducted by the US Government – the average cost for a family of 2.5 people for health insurance is $2,374.90. This represents 4.8% of the annual expenditures*.

    * See attached calculations


Possible Solutions

  • Increase District’s portion of the premiums.

  • Leave the Plan as is and redirect the $1,000 employer contribution to stabilize the fund.

  • Implement HSA as the free plan and place premiums on the HRA equivalent to 2009-2010 levels.


Problem With These Solutions

  • We have no way of knowing how much any changes made at this meeting will actually cost the plan.

  • We can’t fix this problem tonight.


Reasonable Solution

  • EEA Contract – Article I.1

    • C. Issues may be raised through the appropriate collaborative process for consideration during the life of this Agreement.

    • F. This Agreement shall constitute commitments between both parties and may be altered, changed, added to, deleted from, or modified only through the voluntary, mutual consent of the parties in a written and signed amendment to this Agreement.

  • Escambia ESP Contract – Article I.2

    • Issues may be raised through the appropriate process for consideration at any time during the life of the Agreement.


Therefore:

  • Reconvene the committee.

  • Direct the District to commit funds to the plan in a effort to seek a more reasonable solution for your employees.

  • Using a 70%-30% split, the committee would have access to 10 million dollars if the District pledged 7 million dollars and the employees absorbed 3 million in premiums and plan changes.


Can the District Afford More?ECSD Supplemental Budget Information – September 15, 2011


General Fund Instructional Expenses – Over Budgeting

Source: 2009, 2010, 2011 Comprehensive Annual Financial Report


General Fund Over-budgeting

Source: 2009, 2010, 2011 Comprehensive Annual Financial Report


From the Superintendent’s Annual Financial Report

  • On June 30, 2011:

    “Unreserved Fund Balance was $56.5 Million or 21.1 % of the total general fund expenditure”


From the ECSD’s Board Policy

  • “It shall be the goal of the District to maintain a minimum unrestricted operating fund balance for non-recurring expenses of 3.5% of anticipated total revenue.”


It’s All About Choices

  • If we truly want to make ECSD a place people want to work, then we need to make a better choice.

  • ECSD does not stand for

    • Escambia

    • County

    • Securities

    • Deposit


  • Be INformed, Be INvolved, Be INvested

Union of

Escambia ESP

EEA


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