LCSC Wellness Update: Enhancing Employee Health Through Innovative Strategies

1. LCSC Wellness Update March 17, 2011 Larry Veracco Superintendent Lenette Belush, School Psychologist

2. Expanded Mission • Past committees have focused on student issues (pop, menu issues) • Rapidly increasing medical costs resulted in desire to look at employee wellness • Private sector has realized flattening of medical cost increases over time

3. Initial Goals of Committee • Improve Communication • Structure Board Policy to reflect mission of committee • Activities should be selected from employee suggestions, not a canned program • Eventual tie to Benefits Committee and employee health insurance is a goal • Every building represented

4. Enhanced Communication • Website includes minutes plus links to sites containing healthy lifestyle choices • Minutes of meetings are conveniently accessible • Weekly tips sent via email

5. School Board Policy • New NEOLA policy 8510 (attached) • Administrative Regulations will be developed and updated as our program expands • Administrative Regulations are not School Board approved and are typically adjusted annually or sooner when practical

6. Grass Roots Approach • The most successful programs are home grown • Starting small is a recurring theme in the literature • Partnering with other school and outside organizations makes sense

7. Specific Winter 2011 Initiatives • Weekly Wellness email regarding Health Tips • Website dropdowns • Wellness interest survey • Discounted memberships in numerous health clubs • Partnership with Lake Central Education Foundation and Fleet Feet

8. Spring 2011 Initiatives • Begin to consider ways to incentivize employees in terms of small monetary savings • Participation in various wellness activities is key • Collaboration with Benefits Committee must occur • Set calendar for entire 2011-2012 school year • Develop Mission Statement or Committee Objective

9. Benefits Committee Mission • Meets approximately 9 times per year • Analyzes “experience” that is, how close are health costs tracking projections • Considers industry trends and legislation and their effect on the LCSC employee health plan • Desire to better educate employees regarding health care

10. LCSC History of Health Care cost increases (revisited) Year Annual Cost % increase 2002 $3687 13% 2003 $4495 18% 2004 $5500 18% 2005 $6245 12% 2006 $6312 1% *** self funded 2007 $6720 6% 2008 $7392 10% 2009 $7692 4% 2010 $8004 4% 2011 13%

11. Self Funded Plans (revisited) • 2006 Lake Central converted from a “fully insured” plan • LCSC uses history and industry trends to estimate future claims (& takes risk) • Lake Central pays claims on a weekly basis • Anthem collects a per person fee to build network & manage the collection of claims • LCSC must maintain cash “reserves” in the event of a bad year (to avoid catastrophe) • Reinsurance covers all claims for any individual over $125,000

12. 4 Pronged approach to maintaining high quality health care (revisited) • Increase employee share (everyone must pay something) • Increase “user” fees including co pays and deductibles • Wellness Program (Teacher Enrichment March 2011) • Health Clinics for basic care such as colds, flu, blood work, prescriptions (January 2012)

13. 2011 Changes to LCSC Health Plan • Double digit increase to health costs was absorbed through increase in employee share and decreased benefits • Office visit Co-pay 20-25 • Prescriptions 8, 15, to 10, 20, 30 retail and 20,40,60 mail order • Deductible from 100 to 350

14. 2011 Changes continued • Maximum out of pocket – 200-700 • Employee share (single plan) – 100-520 • Urgent Care Co-pay – 35-40 • Emergency Room Co-pay – 100-150

15. Industry Trends • Away from “legacy” plans toward consumer driven plans • Legislation in Indiana will consider creating a separate account for schools and mandating a fixed limit on employer spending (state plan plus 12%) • Benefits Committee has initiated a review of alternatives should this occur

16. Industry Trends continued • Utilization of wellness committee and incentives to alter behavior • Participation in wellness activities • Full health risk assessment • Analysis of Body Mass index as incentive • Entry into walk/run events

17. LCSC Goals • Decrease utilization in an effort to flatten health care cost curve • Get all employees, their families, and children in our schools to live healthier and happier lives • Align committee chosen activities with small employee cost reductions • Expand and contract Wellness activities based on effectiveness and popularity

18. Conclusion • Always room for more participation on both Wellness and Benefits Committees • Health Care costs and wellness initiatives are in flux and will be for the foreseeable future Questions?