EMPLOYEE/RETIREE HEALTH INSURANCE RATE AND BENEFIT PROPOSED CHANGES - PowerPoint PPT Presentation

Attachment C EMPLOYEE/RETIREE HEALTH INSURANCE RATE AND BENEFIT PROPOSED CHANGES Presented to the WCSD Board of Trustees August 9, 2016  Dawn Huckaby, Chief Human Resources Officer  Jackie James, Risk Manager

EMPLOYEES/RETIREES COVERED BY WCSD HEALTH INSURANCE  Active Employees – 6,600  Retirees – 1,028  Total Active/Retirees - 7,628  Total Employees/Retirees With Dependents – 2,449

INSURANCE TRUST FUND BALANCE Beginning Fund Balance January 2015 $18,807,912 Ending Fund Balance December 2015 $ 5,490,462 Fund Balance June 30, 2016 $11,521,381 (after transfer of $4,761,461.55 from OPEB)

PROJECTED INCREASE NEEDED FOR CALENDAR 2017 $8,250,000 11% rate/benefit changes recommended by Insurance Consultant

TIMELINE REGARDING HEALTH INSURANCE DISCUSSIONS March 7, 2016 – Budget Workshop April 5, 2016 – Tentative Budget Presented April 28, 2016 – Rate Projections Introduced to Insurance Committee May 24, 2016 – Final Budget Presented/Approved May 26, 2016 – Insurance Committee Reviewed Rate Projections/Benefit Changes June 16, 2016 – Special Insurance Committee Meeting to Review Rates/Benefits July 20, 2016 - Special Insurance Committee Meeting to Review Rates/Benefits July 28, 2016 - Insurance Committee Meeting – Approved Recommendation for Rate/Benefit Changes

OPTIONS CONSIDERED BY INSURANCE COMMITTEE No Rate or Benefit Changes No funding available to support this option 19% Rate/Benefit Changes 14% Rate/Benefit Changes 10% Rate/4% Benefit Committee requested recalculation based on pharmacy contract 11% Rate/Benefit Changes (after new RX contract) 10% Rate/1% Benefit 7% Rate/4% Benefit New Pharmacy Contract QHDHP/HSA Option Doctors On Demand

DISTRICT CONTINUES TO PAY EMPLOYEE INSURANCE PREMIUM

OTHER LOCAL ENTITIES Washoe County: 2016 rate increase for PPO +13%; HMO +28% and HDHP* +.5% (*High Deductible Health Plan) 2017 rate increase for PPO: +8%; HMO decrease -1%; HDHP +7.2% (decrease in the HMO after making significant changes to the plan) City of Reno: 2016 rate increase for all plans 20% 2017 rate increase around 5% City of Sparks: July 1, 2014 rate increase 25% July 1, 2015 rate increase 25% July 1, 2016 did not increase rates July 1, 2017 expecting a rate increase

EMPLOYEE INCREASE PER MONTH 7% Rate Increase Employee Only $0 Employee + Spouse $24.64 Employee + 1 Child $15.23 Employee + 2 Children $29.76 Employee + Family $38.90

NEXT STEPS Aug 15 - 31 Employee Informational/Educational Sessions Aug 19 Send Open Enrollment Packets to Print Sept 2 Mail Open Enrollment Information Sept 19 Open Enrollment Begins Nov 4 Open Enrollment Ends Nov 18 File Transfer by American Fidelity to WCSD and HTH Nov/Dec HTH Audits File Dec 12 HTH Sends out New ID Cards week

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