Title: 2.  HEALTH INSURANCE RENEWAL

Requested Action:

THAT THE DUVAL COUNTY SCHOOL BOARD APPROVE THE FIRST RENEWAL OF FOUR FOR THE HEALTH INSURANCE PROGRAM OFFERED BY BLUE CROSS BLUE SHIELD OF FLORIDA FOR THE CONTRACT YEAR OCTOBER 1, 2007, THROUGH SEPTEMBER 30, 2008, AND GRANT THE SUPERINTENDENT OR HIS DESIGNEE THE AUTHORITY TO SIGN THE RENEWAL AGREEMENT.

Summary Explanation and Background:
The Board provides a healthcare plan to all eligible, full time employees, retirees, and their dependents.  Blue Cross Blue Shield of Florida will continue to provide healthcare coverage for the October 1, 2007, through September 30, 2008, contract year.  The District Insurance Committee, consisting of representatives from the DTU, AFSCME, LIUNA, Maintenance, and Supervisors Units, along with representatives from the principals, administrators, and retirees, negotiate the benefit structure to be established for the renewal contract period.  Blue Cross has proposed a 13.5% increase to the current fully insured rate structure for the benefits provided.  Robinson Bush, our program consultant, has reviewed this renewal and recommends, based on the current data that an increase of 12% is in order to maintain financial stability to the program.  Should Blue Cross not comply with the consultants recommendations, the Board shall direct staff to investigate all alternative methods of providing the expiring coverage for an amount not to exceed 12% including the self funded arrangement as allowed by RFP #6-06/LG.  All benefits currently in effect will remain the same for the 2007-2008 plan contract year.  This is a no cost benefit to District employees who are enrolled in the State and Select Plus plans.  Employees who choose to provide benefits for their dependents (spouse, children) pay the additional costs for those benefits.  District costs for the expiring plan year are $60,698.202.

Financial Impact (Including HR/headcount/Source of Funds):

$69,802,000 at 15%

$67,981,986 at 12%

For Additional Information, contact:

John Radcliffe, Director

Technical and Logistics Services

390-2258