2012-03-26 Insurance Provider Process Presentation_3_26_12.pdf
2012-03-26 Insurance Provider Process Presentation_3_26_12.pdf
2012-03-26 Insurance Provider Process Presentation_3_26_12.pdf
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Paramount Unified School District<br />
Board of Education Meeting<br />
April 25, <strong>2012</strong><br />
Budget Study Committee<br />
April <strong>26</strong>, <strong>2012</strong><br />
<strong>Insurance</strong> Update<br />
Presented by:<br />
David J. Verdugo, Ed.D., Superintendent<br />
Michael P. Conroy, Ed.D., Assistant Superintendent
<strong>Insurance</strong> Delivery<br />
PUSD<br />
Company<br />
Consultant<br />
Consultant<br />
ASCIP<br />
<strong>Insurance</strong><br />
<strong>Provider</strong><br />
<strong>Insurance</strong><br />
<strong>Provider</strong>
Company<br />
PUSD<br />
Consultant<br />
Consultant /<br />
ASCIP<br />
<strong>Insurance</strong><br />
<strong>Provider</strong>
Company<br />
PUSD<br />
Consultant<br />
Consultant /<br />
ASCIP Pool<br />
SISC Pool<br />
<strong>Insurance</strong><br />
<strong>Provider</strong><br />
greater purchasing<br />
power with<br />
insurance carriers<br />
<strong>Insurance</strong><br />
<strong>Provider</strong>
Company<br />
PUSD<br />
1.5%<br />
$257,515<br />
2011<br />
Medical/Dental<br />
Consultant<br />
Consultant /<br />
ASCIP Pool<br />
SISC Pool<br />
<strong>Insurance</strong><br />
<strong>Provider</strong><br />
$17<br />
Million<br />
2011<br />
Blue Cross /<br />
Kaiser / Dental<br />
Plans Offered:<br />
Blue Cross,<br />
Blue Shield,<br />
United<br />
HealthCare<br />
and Kaiser
What is the Health & Welfare Goal ?<br />
• To provide eligible District employees with:<br />
– Health, dental, vision, and life insurance<br />
– Quality insurance coverage<br />
– Affordable cost to District and employees
End Result: Quality Product,<br />
Service, and Low Rates<br />
Best Interests<br />
of PUSD<br />
Employees<br />
versus Delivery Method<br />
PUSD<br />
Since 2004-05, average<br />
Blue Cross PPO increase<br />
5.58% in the SISC-<br />
LARISA/ACSIP Pool<br />
SISC Pool<br />
Consultant /<br />
ASCIP Pool<br />
Blue Cross /<br />
Kaiser
Preliminary Renewal Rate<br />
Range for ASCIP Pool<br />
• While the ASCIP program operates<br />
independently, the business alignment with<br />
SISC creates greater economies of scale for<br />
member groups, yielding greater efficiency<br />
and rate stability than would be possible for<br />
groups operating as stand-alone entities,<br />
which equates to greater purchasing power<br />
with insurance carriers.
Preliminary Renewal Rate<br />
Range for ASCIP Pool<br />
• Preliminary ASCIP Pool renewal rate increase<br />
for 2013 range from not less than 5% to not<br />
greater than 9.5%<br />
• Paramount PPO averaged 5.58% for last 8<br />
years, 9.1% for last 3 years
3-Yr Comparison of Medical Premium Increases<br />
(sampling)<br />
DISTRICT PPO Medical Carrier Plan Design<br />
2009-10<br />
% Increase<br />
(over 2008-09)<br />
2010-11<br />
% Increase<br />
(over 2009-10)<br />
2011-12<br />
% Increase<br />
(over 2010-11)<br />
3-Year<br />
% Average<br />
Paramount USD Anthem BC 100% 9.30% 9.50% 8.50% * 9.40%<br />
Downey USD Blue Shield 90% 2.00% 9.40% 2.25% 4.55%<br />
Lynwood USD Blue Shield 80% 5.70% 15.00% 15.00% 11.90%<br />
Long Beach USD Anthem BC 80% 5.40% 14.20% 5.40% 8.33%<br />
Torrance USD Blue Cross 90% 0.00% 11.00% -4.00% 2.33%<br />
Centinela Valley Union HSD &<br />
Los Angeles USD<br />
Centinela Valley Union HSD &<br />
Los Angeles USD<br />
CalPERS / Anthem BC 90% 10.62% 1.96% 15.14% 9.24%<br />
CalPERS / Anthem BC 80% 0.75% 9.66% 1.91% 4.11%<br />
Glendale USD Blue Shield 90% 10.50% 9.30% 9.30% 9.70%<br />
Santa Ana USD Blue Shield 80% 9.00% 12.53% -5.10% 5.48%
<strong>Insurance</strong> 2011-<strong>2012</strong><br />
• Change to Calendar Year Plan<br />
– 12 months to 15 months of coverage<br />
October<br />
2011<br />
January<br />
<strong>2012</strong><br />
September<br />
<strong>2012</strong><br />
December<br />
<strong>2012</strong><br />
• Purpose of Calendar Year Cycle:<br />
– Ease of implementation at start of school year –<br />
Open Enrollment period<br />
– More time for employee education<br />
Calendar<br />
Year 2013
<strong>Insurance</strong> Renewal Timeline<br />
Plan design discussion<br />
__ │_____│______│______│______│______│______│______│______│_______│______│_______ │__<br />
Feb March May June July Aug Sept Oct Nov Dec Jan<br />
<strong>2012</strong>-13 2013<br />
1. March -- Preliminary Renewal Rate Range for ASCIP Pool<br />
2. Mid-August - <strong>Insurance</strong> Carrier Renewal Rates for<br />
January 2013<br />
3. August start of school<br />
4. October 1 through October <strong>26</strong> (4wks) Employee Education<br />
5. October 29 to November 16 (3wks) -- Open Enrollment<br />
tentatively scheduled<br />
6. January start of 2013 insurance year
Questions ?
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