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Educational Board 2008-2009 Insurance Renewal Plan Updates: Design Changes and Cost Savings

This document outlines the insurance renewal plan for the year 2008-2009, detailing design changes for health coverage including copay adjustments, deductible modifications, and prescription drug alterations. It also provides projected medical costs and total compensation discussions reflecting updates in premiums for various school districts in the metro area. The revisions are aimed at enhancing benefits while managing costs efficiently.

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Educational Board 2008-2009 Insurance Renewal Plan Updates: Design Changes and Cost Savings

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  1. Board of Education Insurance Renewal Plan Year 2008-2009

  2. Plan Design Changes2008-2009 CIGNA HMO: • PCP office visit copay: $20 to $25 • Specialist visit copay: $25 to $40 • Outpatient Surgery copay: $100 to $200 • Increasing out of pocket maximum from $2000 (single)/$4,000 (family) to $2,500 (single/$5,000 (family) • Add Hearing Aid deductible of $250 • 2

  3. Plan Design Changes2008-2009 PPO 1: Increase deductible: From $250 (single) to $300 (single) From $500 (family) to $600 (family) PPO 2: No plan design changes 3

  4. Prescription Drug Changes2008-2009 CIGNA HMO, PPO 1, and PPO2 Plans: • Increase Generic Copay from $5 per prescription to $10 per prescription • Add 4th tier copayment of $100 for injectibles • Increase prescription preferred and non-preferred minimums and maximums: • Preferred minimum: $20 to $25 • Preferred maximum: $40 to $50 • Non Pref. minimum: $40 to $50 • Non Pref. maximum: $80 to $100 • 4

  5. Plan Design Changes for Kaiser2008-2009 • Increase PCP copayment from $20 per office visit to $25 per office visit. • 20% coinsurance for specialty drugs including self-administered injectibles (does not include insulin) up to a maximum of $250 per drug dispensed/per prescription. • 5

  6. Life, Long Term Disability and Dental/Vision Plans2008-2009 • No rate increase to Life Insurance – CIGNA No plan design changes • No rate increase to Long Term Disability No plan design changes • No rate increases to Dental plan No changes to Plan Design • No rate increases to Vision Plan Increase in contact allowance from $105 to $115 • 6

  7. Projected Medical Costs2008-2009 Administration (+5% increase): $2,163,319 Stop-Loss (increase to $400,000) $614,916 Medical/RX claims (+12.1%) $32,355,048 Total CIGNA Plan Cost $35,679,007 Kaiser Premium $ 3,862,562 (+12.1%) TOTAL Medical Cost: $39,541,569 7

  8. Projected 2008-2009 Medical/RX Cost Total Projected 2008-2009 Medical/RX Cost: $39,541,569 Total Cost Savings of Proposed Changes ( $ 3,087,013) (Plan changes absorbed by district and employees) Revised Projected 2008-2009 Projected Medical/RX Cost: $36,454,556 8

  9. Total Compensation District Negotiations continue on the total compensation package, however, it is agreed that the 12.1% increase in medical premiums is part of the total compensation package.

  10. Medical 2008-09 Rates

  11. Metro area School District Rate Increases 2008-09 Cherry Creek Schools: Kaiser HMO: + .6% Kaiser Triple Option: +2.6% Poudre Valley: Self funded plan +13% Littleton Public Schools: Aetna: +17.8% Kaiser +21.9% Aurora Public Schools: Kaiser: +2.4% PacifiCare HMO: +9.8% PacifiCare POS: +9.98% Denver Public Schools: Kaiser High & Low Plans: +6.5% PacifiCare plans +8.0% 11

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