During the past several years Fort Osage has been able to keep the insurance premium increases in check with good staff health and low claims. A few years ago, according to our insurance broker, CBIZ, Fort Osage had the best claims loss ratio in the metro at 73% (compared to 31 area schools CBIZ represents). These low claims led to minimal insurance premium increases (if any) for several years. As a result, Fort Osage has been able to make significant contributions to HSA accounts (for those employees who have the high deductible plans) over the same time period. To this day, according to CBIZ, Fort Osage contributes the second highest amount to HSA accounts in the metro (same 31 districts). I’ve been told that insurance claims are like a pendulum. Meaning, if your claims are good they will likely swing the other way and become worse over time. Likewise, if the claims are unfavorable they will likely become better over time. Over the past year Fort Osage has seen the pendulum move as our claims loss has increased to 121%. This increase in claims led to some unfavorable bids for our January 1, 2020 renewal. Bids for District's Premium Increase for January 1, 2021 Renewal United Health Care 55% (fully insured) Cigna 39% (fully insured) Humana 36% (fully insured) BCBS Declined Bid Aetna Declined Bid Cigna ASO 20% (self insured) SiPGKC 18% (self insured) There are generally two ways the District can structure it’s health insurance payment to our provider (fully insured or self insured). The funding structure does not impact the employees or it's dependents in any way. Historically, Fort Osage has been fully insured. With fully insured funding structures Districts pay the same amount in premiums each month (regardless of claims). When you have high claims the insurance provider will increase the premium the following year (as we experienced this year with our bids). With self insured funding structures, Districts have the opportunity to set their own premiums, but must fund the plan appropriately in order to pay the insurance claims that are incurred each month. Meaning, if the District has more claims than its paid in premiums, the District will owe additional money. Likewise, if the District has fewer claims than the premiums paid the District will build a surplus that can be used to offset future insurance claims. After a thorough analysis of the bids and feedback from Team Fort Osage, Fort Osage will be joining the SipGKC consortium beginning January 1, 2021. Beyond being the lowest bid, Fort Osage employees and their dependents will still have access to the Consiglio Wellness Center in Blue Springs. Additionally, our health insurance provider will remain with Cigna and there will not be a disruption to the HSA accounts. The SipGKC consortium includes the school districts of Blue Springs, Grain Valley and Smithville. The Open Enrollment period for 2021 benefits elections will take place October 19-30 (more information to follow via email). If you have any questions please contact Benefits Coordinator, Laura Ford, at [email protected]. Comments are closed.
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