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Discussion of the Proposed 2014-2015 Medical Plan Offerings

Discussion of the Proposed 2014-2015 Medical Plan Offerings. Auburn School District June 24th, 2014 Presented by ASD and Sprague Israel Giles, Inc . Sprague Israel Giles, Inc. Insurance Brokers for the District Thomas Bell – Account Manager, Employee Benefits

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Discussion of the Proposed 2014-2015 Medical Plan Offerings

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  1. Discussion of the Proposed 2014-2015Medical Plan Offerings Auburn School District June 24th, 2014 Presented by ASD and Sprague Israel Giles, Inc.

  2. Sprague Israel Giles, Inc. • Insurance Brokers for the District • Thomas Bell – Account Manager, Employee Benefits • Monica Cripe – VP of Employee Benefits • SIG provides benefits consulting to the District and to the Health Benefits Committee (HBC)

  3. The Health Benefits Committee (HBC) • Includes representatives from • All major bargaining units • Non-voting reps from Payroll and the Business Office • Meets monthly throughout the school year to discuss employee benefit matters • Makes recommendations to the District regarding plan choices, benefit designs, etc.

  4. No Extra Money from the State • The Legislature provided NO increase in state funding for employee benefits • Remains at $768 per full-time employee • This will be the FIFTH year with no increase • However, medical premiums have increased each year • Practically all employees with dependents have payroll deductions • Many single employees have payroll deductions currently

  5. The 2013-2014 Medical Renewal • LAST YEAR • June 13, 2013 - The Washington Education Association (WEA) Benefits Renewal was released • Changes to Premera medical plans: • Reduced benefits on Premera Plans 2, 3 & 5 (increases in deductibles) • Rate increases between 16.4% to 16.9% • Monthly premium increases ranged from approximately $50 to $300

  6. The 2014-2015 Medical Renewal • This Year (for the 2014-2015 plan year) • June 12th, 2014 - The Washington Education Association (WEA) Benefits Renewal was released • Changes to Premera medical plans: • All cost shares (except prescription drug copays) go toward Out-of-Pocket Maximum due to ACA • Out-of-Pocket Maximums lowered on EasyChoice Plans due to ACA • $100 in-network deductible added to EasyChoice Plan C • Rate increases of 7.9% • Monthly premium increases range from approximately $31 to $165

  7. The 2014 Medical Renewal, cont. During the last two years: • The HBC requested proposals from other medical insurance companies • The HBC discussed alternative options (satisfying due diligence requirements of state law) • Goal of avoiding major cost increases to employees while maintaining comparable benefits

  8. 2014 Medical Plan Proposals 2014 Medical “Request for Proposal” Results:

  9. Medical Proposals from GH Options, Inc. • Options PPO, Access PPO, and the GHC HMO • Created a suite of plans that offer comparable benefits while allowing employees to choose the plan that best fits their needs • Comparable provider networks – hospitals, clinics, doctors(First Choice Health Network and Access PPO Network) • Overall, with monthly premiums that in most cases are significantly less expensive than the WEA Premera premiums • Premium difference of approximately $1.5 million a year for ASD • 2nd year rate cap of 11%

  10. Proposal from the HBC • Insurance Review Committee members have agreed to share proposal information with all employees • Information about proposal: • Three (3) Options PPO plans, two (2) Access PPO plans, and one (1) Group Health HMO plan • Benefits are comparable, but not the same • District could choose to keep Premera Plan 3; all other Premera plans would be replaced • Rates for Plan 3 would go up 10% (plus renewal increase of 7.9%)

  11. Provider Networks of Proposed Plans • Three GH Options PPO Plans • Largest Network • First Choice Network / Any Other Provider • First Health Nationally • Two GH Access PPO Plans • Smaller Network • Access Network / Any Other Provider • First Health Nationally • Multicare is considered Out-of-Network on Access Plans • One GHC HMO Plan – Group Health Doctors Only

  12. Timeline • June 26th – Town Hall Meeting • July 8th – 2 Town Hall Meetings • July 10th – 2 Town Hall Meetings • Bargaining Groups will vote • Results will be shared by August 1st

  13. Service & Administration • The ASD Benefits Website • www.ourpasswordpage.com (password: asd) • The Benefits Helpline • (800) 946-7066 • (206) 957-7054

  14. Thank you! Questions & Open Discussion

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