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Meeting Date:
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4/19/2018 - 6:30 PM
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Category:
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Report of the Committee on Accountability, Finance, and Personnel
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Type:
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Action
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Subject:
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4. Action on Proposed Benefit Changes for FY19
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Strategic Plan Compatibility Statement:
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Goal 3 Effective and Efficient Operations
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Attachments
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1. January 1, 2019 Benefit Changes
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File Attachment:
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Background:
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As part of the FY19 budget planning process, the Administration is proposing benefit changes.
The following is a conceptual overview of those proposed benefit changes.
1. Spousal Carve-Out would require working spouses, eligible for healthcare benefits through their employer, to be required to enroll in coverage offered by their own employer.
2. Increase co-pays for Primary Care Physician, Specialist Visit, Emergency Room, and Urgent Care.
3. Increase employee contributions for EPO (Exclusive Provider Organization), and PPO (Preferred Provider Organization) medical plans. No change to HDHP (High Deductible Health Plan).
4. Offer Long-Term Disability as an employee voluntary option instead of Board-paid benefit.
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Fiscal Impact Statement:
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If the Board approves all benefit changes effective January 1, 2019, approximate savings for FY19 for a 6-month period would be $8.5 million and for a 12-month period would be $17.1 million.
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Implementation and Assessment Plan
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Upon approval by the Board, the Administration will implement the benefit changes effective January 1, 2019.
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Recommendation:
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Your Committee recommends that the Board:
1. approve the Administration’s recommendation to terminate MPS’s paid long-term disability plan; and
2. direct the Administration to establish a strategy for lowering MPS’s healthcare costs and improving the health and wellness of MPS employees, with an emphasis on preventive care, by developing and presenting to the Board by the November 2018 Board Cycle; and
3. direct that the innovative new methods of healthcare for MPS employees include strategies that will reduce total healthcare costs at MPS by 10% without reducing benefits and without annual increases in employee premiums and cost-sharing (e.g., deductibles, co-pays, co-insurance) greater than the rate of inflation; and
4. direct the Administration to develop this new strategy with experts and by forming an advisory committee to include the following:
• board members
• members of administration
• school-based staff
• parents and community members; and
• local/state leaders in healthcare reform.
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Approvals:
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Recommended By:
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Signed By:
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Jacqueline M. Mann, Ph.D. - Board Clerk/Chief Officer
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