2011-2012 Benefit Plan Recommendations

1. 2011-2012 Benefit Plan Recommendations Kitty Poehler Executive Director of Personnel Services

2. Plan Performance • Two stop loss claims equal $300,000 • Core plan performing 13% above projections • Basic plan performing 22% below projections • Dental plan performing 16% below projections • No recommended premium increases for 2011-2012 • Reduction in District contribution from $260 to $225

3. Required Changes for 2011-2012 as a result of Health Care Reform Act • Remove dollar limits for Hospice Care, Sleep Studies, Diabetic Supplies, and TMJ Treatment • For Chiropractic Services remove $1,000 annual Limit and limit these services to 20 visits per year • Remove $250 lifetime dollar limit for a wig after Chemotherapy and instead limit to one per lifetime • Remove $1500 annual limit for prosthetics and make them subject to prior authorization for any amount over $1500

4. Increase in Employee Cost • All participants will have a $35.00 per month increase as a result of the reduction in the District Contribution as part of Tier I budget cuts • No other premium increases are recommended at this time for medical • No premium increase for dental • No premium increase for vision

5. Plan design change recommendations • Core and Basic Plan retail drug premiums for brand name drugs increased from $25 to $35 • Core and Basic Plans mail order co-pays increase generic from $20 to $25 • Core and Basic Plans mail order co-pays increase brand from $70 to $75 • Core Plan In-Patient Hospital co-insurance decreased from 90% to 80% • Core Plan Out-Patient Hospital co-insurance decreased from 80% to 70% • Reduce the Alternate Plan Daily reimbursement from $500 to $50 per day. • Core Plan add a $200 Emergency Room Co-pay along with 30% coinsurance before all other benefits are paid. • Basic Plan add a $200 Emergency Room Co-pay along with 20% coinsurance before all other benefits are paid. • Basic Plan Change the In Network Co-Insurance from 80% to 70% and Out Of Network from 60% to 50%.

6. How do we compare to TRS Active CareEmployee Cost ActiveCare2 Northwest Core Plan In Network In Network Deductible Individual $ 750 N/A Family $2,250 N/A Coinsurance Individual $750 + 20% 30% Family $2,250 + 20% 30% Out of Pocket Max Individual $2,000 $4,000 Family $6,000 $8,000

7. How do we compare to TRS Active CareEmployee Cost • ActiveCare2 Northwest Core Plan • In Network In Network • Office Visit • $25/35 30% • Emergency Room • Individual $150 + $750 + 20% $200+ 30% • Family $150+ $2,250 + 20% $200 + 30% • Hospital Admission • Individual $150+$750 + 20% 20% • Family $150+$2,250 +20% 20%

8. How do we compare to TRS ActiveCare 2 Prescription Costs? Employee Prescription Drug Cost ActiveCare2 Northwest Core Plan In Network In Network Deductible $100 $100 Retail 30-Day Generic $15 Greater of $5 or 30% Preferred Brand $35 Greater of $35 or 30% Non-Preferred $60 $125 (Specialty Drug) Mail Order – 90 Day Generic $45 $25 Preferred Brand $105 $75 Non-Preferred $180 N/A Specialty Drug

9. Premium Costs Active Care2 2011-2012 Plan Employee Only $176.00 $153.00 Employee Child(ren) $432.00 $509.00 Employee/Spouse $729.00 $621.00 Employee/Family $827.00 $817.00

10. Where do we come in District Contribution to surrounding Districts?

11. District Rate Comparison

12. District Rate Comparisons

13. NISD Wellness Center • Employees are currently scheduled for Personal Health Plan Assessments • Working on developing hours of operation schedule • Analyzing and determining prescription drugs for Center • Construction is underway on the Wellness Center

14. NISD Wellness Center

15. Strategic Goals II: Northwest ISD will recruit, develop, retain, and recognize an exceptional, highly motivated staff to optimize student engagement and learning Strategic Goal IV: Northwest ISD will provide premier facilities and support systems that enhance a positive learning environment and foster student and community pride.

16. Questions ?