Agenda Plus
School Board of Clay County
June 7, 2018 - Regular School Board Meeting
Title
D9 - Renewal of Employee Benefits for 2018-2019
Description

The Clay County School Board offers employee benefits to all eligible employees, and retirees on an annual basis as required by State and Federal Law.  The Employee Benefit Renewal document outlines the renewal process for all employee benefits and the web enrollment system for the 2018-2019 plan year (October 1st -September 30th).

Gap Analysis

An overall medical increase from UnitedHealthcare of 29.5% over the current rates, which equates to approximately $5,852,438.00.  After negotiations and plan design changes a 11.08% overall increase was negotiated with UnitedHealthcare for the 2018-2019 plan year, which equates to approximately $2,678,287.01.

Previous Outcomes

Employee Benefits is part of the collective bargaining process which is negotiated through the district Insurance Committee.  The Board has maintained an Employee Benefits package that has been in compliance with Florida Statutes and the Affordable Care Act, based on the recommendations of the Insurance Committee.

Insurance Plan

2017-2018

2018-2019

Estimated Cost Difference

United Healthcare

$24,169,166.00

$26,847,453.01

$2,678,287.01              (11.08% Increase)

Kemper (Medical Gap Plan) Voluntary

$296,704.60

$246,264.82

-$50,439.78                        (17% Reduction to Employees)

Delta Dental  - Voluntary

 

$2,195,860.28

$2,086,067.27

-$109,793.01                        (5% Reduction to Board/EE's)

Humana Vision - Voluntary

$472,272.00

$436,920.00

-$35,352.00                       (7.5% Reduction to Board/EE's)

Liberty Mutual (Life & Disability)

$1,354,768.00

$1,279,291.00

-$75,476.00                       (5.5% Reduction to Board/EE's)

 

Univers our web enrollment vendor is being replaced with BenefitFocus beginning July 2018.  The cost difference is approximately $5,000.00 annually due to carrier offsets.  BenefitFocus has a partnership with Aflac for voluntary workplace benefits that will replace Unum.

Expected Outcomes

The Board to approve the Employee Benefit Package for the plan year 2018-2019. The district will continue to maintain a fully insured Employee Benefit Package as required by Florida Statutes and The Affordable Care Act.  

Strategic Plan Goal

The district ensures fiscal responsibility & equitable distribution of resources.

Recommendation

That the Clay County School Board approve the renewal of Plan A Medical with a $25 per pay period nicotine surcharge (if employee answers yes to nicotine/tobacco usage question), Medical Gap, Group Term Life & AD&D, Supplemental Life & AD&D, Short and Long Term Disability, Dental, Vision, Accident and Injury Policy, Critical Illness, Whole Life, Flexible Spending Account, Health Savings Account and Plan B Coverages (Employees with no Medical Insurance) and the Web Enrollment Program provided by BenefitFocus for the plan year October 1, 2018 through September 30, 2019.  A one-time Board Contribution of $250.00 to Optum Bank (health savings account) if enrolled in Choice HSP, subject to collective bargaining and if approved by June 24, 2018 for the 2018-2019 plan year.  This is the recommendation of the Insurance Committee.


 

Contact
Dr. Susan Legutko Assistant Superintendent of Business Affairs (904)336-6721 Susan.Legutko@myoneclay.net
Financial Impact
An overall medical increase from UnitedHealthcare of 11.08% over the current rates, which equates to approximately $2,678,287.01. All per pay period rates are subject to collective bargaining.
Review Comments
Attachments
CCSD INS. COMMITTEE'S RECOMMENDATION 06072018 FINAL.pdf