Monday, July 14, the SAISD Board approved a change in carrier for the SAISD health insurance plan – Humana. The annual enrollment period for health insurance will begin August 26 and end September 24 with the benefits becoming effective on November 1.
This spring the district sent out a Request for Proposals (RFP) for health insurance. Four carriers – Aetna, Humana, Blue Cross/Blue Shield, and Cigna – submitted proposals with the initial responses ranging from 28% to 43% rate increases. Beginning in May, the district’s Employee Benefits Committee met eight times, a total of around 38 hours, to review the proposals, consider plan adjustments, discuss negotiating strategies, and agree on a recommendation to send forward to the school board.
Through the negotiations process, the committee was able to lower the rate increase to a 16% overall increase. The committee recommended that the district pick up much of that cost by increasing its contribution by $3 million, bringing the total amount the district contributes to employee health insurance to around $28 million annually. The district contribution had been $279.14 per employee per month, but based on the committee’s recommendation, the district contribution will go to $314.09 per employee per month.
The committee was adamant about keeping an “employee only” option that would be at no cost to the employee and was successful. The committee felt this was very important in order to keep as many employees in the plan as possible. Otherwise, healthy employees start to opt out, which results in a pool of people who are less healthy as a group, thereby causing future rate increases. After taking care of the employee coverage, the committee’s next priority was the coverage for “employee and child(ren).” Humana offered the lowest premium of the four carriers for “employee and children.”
The committee was also steadfast about the need for a rate cap guarantee and was able to secure a 10% renewal rate cap for the 2009-10 year. Humana was the only carrier willing to agree to a rate cap.
Alliance members on the committee were: Terry Armstrong (Plant Services), Norma Juarez (Transportation), Hilda Morales (Houston Fd. Svcs.), Elaine Pierce (Highland Hills Teacher), Gerald Veteto (Highlands Teacher), Susie Alfaro (Highlands Paraprofessional), JB Richeson (Alliance Exec.VP), and Shelley Potter (Alliance Pres.). Other members of the committee were principals Della Rodriguez, Maria Yesenia Saenz, and Nikki Foley-Demby, Kathy O’Neill (Technology), Irma Hernandez (Emp. Benefits Dept.), and Pam Morrison (Materials Management).