Call to Order: Chairman Tim Rosandick called the business meeting to order at 9:00 a.m. on Friday, April 16, 2010.

 

Members Present:  Tim Rosandick, Chad Struhs, Geoffrey Thomas, Bruce Bradberry, Melvin Beutler, Jim Cobble, Mike McGuire and Mike Friend.

 

Members Excused:    Rulon Ellis       

 

Staff Present:   Debbie Fausett

 

Guest Present:           Dale Layne, Jerome School District, Region IV

                Jerry Dworak, Liz Labrum, Adrienne Ries, David Hutchins, Blue Cross

                Ron Osborne, Western Benefit Solutions

                Nate Pierce and Laura Leung, Willamette Dental

                Jennifer Marrow, Business Psychology Associates

                                               

Agenda Approval: Moved-Bruce Bradberry; second Jim Cobble to approve the April 16, 2010 meeting agenda.  Motion carried.

 

Consent Agenda Items: Moved—Jim Cobble; second, Geoffrey Thomas to approve the consent agenda items including 1)Board minutes of the January 15, 2010 meeting with the following correction to Members Present: add Bruce Bradberry, 2)expenditures through March 31, 2010, 3)budget report through March 31, 2010 and 4)Legal Services Agreement with Eberharter-Maki & Tappen, PA. Motion carried.

 

Unfinished Business:

 

Update on Legal Questions Related to Surplus Premium:  Blue Cross legal department and Eberharter-Maki & Tappen are working through the issues of how surplus premium dollars are to be dispersed to the Idaho School District Council and how surplus premium dollars with their relationship to public school districts can be invested.

 

Update on Meeting with BCI Management: Mike, Tim and Debbie met with the Blue Cross of Idaho management team, including CEO Ray Flashbart in February.  The ISDC team appreciated the afforded opportunity to deliver the Council’s message concerning rising insurance premiums in light of the economic conditions currently bestowed upon the school districts.

 

Role of Consultant:  A draft description of the Role of Consultant was presented to the Board.  No action was taken.   

 

Claims Audit Discussion:  This is the last piece of the Statewide Schools Health Insurance Program Evaluation Report to be considered for action.  It was the general consensus of the Board that further education on a claims audit is needed.  A one-hour workshop will be planned to deliver more information.

 

403(b) Survey Results:  In an effort to better serve ISDC members, a survey was conducted of all districts to gather information regarding employee cost sharing of health insurance premiums, provisions of full coverage to part time employees and whether ISDC members would benefit from ISDC services related to the administration of a 403(b) plan.  Fifty districts responded; the general consensus no administrative services of a 403(b) plan is necessary.

 

IV.   New Business

 

A.  Procedures Manual Update:  The Board was presented with amendments and additions to the ISDC procedures manual that included 1) the addition of 203A Surplus Reserve Policy, 2) to 205 Purchase Orders, Invoices and Payments Policy, the addition of board approved deferred invoice payment stipulations and 3) amendments to 211 Records Retention Policy.  Action was tabled. 

 

B.     2010-2011 Budget:  Upon motion made by Jim Cobble and seconded by Bruce Bradberry all voted in approval of the 2010-2011 fiscal budget as presented.

Executive Session 67-2345(a):  Upon motion made by Mike Friend and seconded by Geoffrey Thomas:  BE IT RESOLVED that the Board of Directors of the Idaho School District Council recessed from an open meeting at 10:30 a.m. into executive session pursuant to Idaho Code Section 67-2345 in order to consider personnel and contract negotiations.  BE IT FURTHER RESOLVED that following the executive session the board will reconvene in public session for the purpose of conducting further business or adjournment of meeting.  Board polled – Unanimous.  Motion carried.

 

Action Resulting from Executive Session:  Adjourning from executive session at 10:45 a.m., the Board returned to regular session.

Personnel Recommendations:  Upon motion made by Bruce Bradberry and seconded by Chad Struhs all voted in favor of retaining Debbie Fausett as Office Manager and Mike Friend as Executive Director.

 

Adjournment 10:55 a.m.:  Moved-Chad Struhs second Geoffrey Thomas to adjourn the ISDC business meeting.  Motion carried.

 

 

 RENEWAL MEETING MINUTES:

Call to Order: Chairman Tim Rosandick called the renewal meeting to order at 10:55 a.m. on Friday, April 16, 2010.

 

Members Present:  Tim Rosandick, Chad Struhs, Geoffrey Thomas, Bruce Bradberry, Melvin Beutler, Jim Cobble, Mike McGuire and Mike Friend.

 

Members Excused:    Rulon Ellis       

 

Staff Present:   Debbie Fausett

 

Guest Present:           Dale Layne, Jerome School District, Region IV

         Jerry Dworak, Liz Labrum, Adrienne Ries, David Hutchins, Blue Cross

         Ron Osborne, Western Benefit Solutions

         Nate Pierce and Laura Leung, Willamette Dental

         Jennifer Marrow, Business Psychology Associates

 

Corporate Partner/Service Provider Updates and Renewals: 

 

Business Psychology Associates:    

Jennifer Marrow presented the EAP summary of services and utilization report for January 1, 2009 through December 31, 2009.  The average eligible employee count is 8,006 with an annualized utilization rate of 7.3%.

Jennifer Marrow spoke to the Board regarding the EAP renewal for participating school districts effective October 1, 2010 effective through September 30, 2011.  All school districts under 500 employees, renewing September 1, 2010 will be locked into the rates for one year following the renewal.  If the district has 500 or more employees, the experience rate is applicable for one year.  The EAP is an employer-sponsored service and not a healthcare or insurance benefit.  However, the EAP may be contracted through Blue Cross of Idaho with the health plan or directly from BPA and if the school districts have fewer than 100 employees it is best to go through Blue Cross.  The agreement between ISDC and BPA allows a commission payment of .05 cents per employee per month to be paid to the ISDC for the endorsement of BPA services.

 

Standard Life

Ron Osborne, Western Benefit Solutions reported that the proposed renewal for actives is no increase for two years for the Standard Life.  The proposed renewal for retirees is a 20% increase to premium.  

 

Upon motion made by Mike Friend and seconded by Jim Cobble all voted in favor of accepting Standard Life insurance renewal proposal 1) no increase to premium for actives for the 2010-2012 contract years and 2) 20% increase to premium for retirees.

  

Ron also presented the Board with a proposal(s) to bundle Standard Life with SWS medical plans. A motion made by Mike Friend and seconded by Mike McGuire to table for further discussion and for the requirement of more information prior to action being taken.  The motion and second were withdrawn. 

 

Recess:  12:05 p.m.

Reconvened: 12:45 p.m.

 

Upon a motion made by Mike Friend and seconded by Geoffrey Thomas all voted in favor of tabling action on the proposed bundling request made by Ron Osborne of Western Benefit Solutions.

  

Willamette Dental

Nate Pierce provided the Board with the experience report for March 2009 through February 2010.  Membership averages 3,144 employees and dependents with a utilization rate of 91.07%. 

Laura Leung, Senior Underwriter announced to the Board that due to the experience factor Willamette Dental would recommend a rate increase of 8.96% for the 2010-2011 renewal year. Upon motion made by Mike Friend and seconded by Melvin Beutler all voted in favor of accepting Willamette Dental’s renewal proposal of an 8.96% increase to premium for the 2010-2011 contract years. 

 

Executive Session 67-2345(e):  Upon motion made by Mike Friend and seconded by Melvin Beutler:  BE IT RESOLVED that the Board of Directors of the Idaho School District Council recessed from an open meeting at 1:30 p.m. into executive session pursuant to Idaho Code Section 67-2345 in order to consider personnel and contract negotiations.  BE IT FURTHER RESOLVED that following the executive session the board will reconvene in public session for the purpose of conducting further business or adjournment of meeting.  Board polled – Unanimous.  Motion carried.

 

Action Resulting from Executive Session:  Adjourning from executive session at 2:30 p.m., the Board returned to regular session.  Action taken Blue Cross of Idaho/SWS insurance renewal for 2010-2011:

 

A.  $100 Emergency Room Benefit: Upon motion made by Melvin Beutler and seconded by Chad Struhs all voted in favor of approving a $100 co-pay per visit for emergency room use, added to all plans if not admitted to hospital. This should result in a .5% premium reduction.

B.  Tiering:  Upon motion made by Geoffrey Thomas and seconded by Bruce Bradberry all voted in favor to freeze the tiering structure for the 2010-2011 contract year because the disparity between high and low utilizers is not significant.

C.   SWS Health Premiums for 2010-2011: 

1.  Upon motion made by Mike Friend and seconded by Mike McGuire all voted in favor of accepting the 15.0% increase in premium for actives for the 2010-2011 SWS contract year as presented by Blue Cross of Idaho to be lowered to an approximate effective 5.4% premium increase through a one-month (September 2010) premium holiday for actives. 

2.  Upon motion made by Mike Friend and seconded by Bruce Bradberry all voted in favor of participating in a one-month premium holiday (September 2010) with Blue Cross of Idaho contributing 4.5 million dollars and ISDC contributing not more than 6 million with the caveat that Blue Cross will hold ISDC harmless for the 1.5% retention.

3.  Upon motion made by Mike Friend and seconded by Chad Struhs all voted in favor of accepting the 15.0% increase in premium for retirees for the 2010-2011 SWS contract year as presented by Blue Cross of Idaho.

D.   SWS Matrix for 2010-2011:

1.      The matrix has been collapsed so as to phase out some of the options previously offered. 

2.      In order to reduce the premium increase to near zero or below it was recommended that Districts should give consideration to adopting a $250, $500 or $750 brand deductible to the RX benefit for an average savings of 2.5% to 8.3% of premium.   

F.     SWS Dental Premiums for 2010-2011:

1.  Upon motion made by Mike Friend and seconded by Chad Struhs all voted in favor of accepting Blue Cross of Idaho dental renewal proposal at 1.6% increase to premium for actives and 12.1% increase for retirees for the 2010-2011 contract year   .

G.     SWS Vision Premium for 2010-2011:

1.   Upon motion made by Melvin Beutler and seconded by Geoffrey Thomas all voted in favor of accepting Blue Cross of Idaho vision renewal proposal at no increase to premium for the 2010-2011 contract year.

           

Next Meeting Date:  TBA

 

Adjournment 3:15 p.m.:  Moved-Mike Friend second Chad Struhs to adjourn.  Motion carried.