‘Risk Management Deparment (830) 469-6218. Fea (850) 469-6283 MEMORANDUM TO: ‘Mr. Malcolm Thomas, Superintendent Bargaining Council (EEA, EESP) Kevin Windham, Director 70 ‘Risk Management DATE: 08/21/09 RE: Employee Benefits Committee Final Proposal for Medical Insurance Changes In accordance with the new contract language and as the moderator of the newly formed “Employee Benefits Committee”, I am submitting the “final proposal” approved by the Employee benefits Committee on Tuesday, August 18, 2009. For the Bargaining Council, please proceed with the ratification vote as this is due within two ‘weeks of receipt ofthe final proposal. Estimated Funding Deficit 12/31/10 (86,370,578) ‘QWithout Plan Changes-Updated With Participation Adjustments) Proposed Plan Design Changes #5 (Est. Annual Savings)* $3,526,802 Proposed Plan Design Change #6 (Est. Annual Cost)** ($326,340) Proposed Wellness Incentive for HRA*** (8350,000) Proposed Funding from Board Funding Si. 0 Updated Estimated Funding Deficit 12/31/10 $2,520,116 (Absorbed by EBTF Reserves) *Blan Design 5-(Results in estimated plan savings of $3,526,802). Change Coinsurance on the Choice Plan from 100% to 80% All current covered medical services covered at 100% coinsurance after co-pays would now be covered at 80% coinsurance, after co-pays. Exceptions Listed in Plan Design Change #6 **Plan Design 6-(Results in estimated plan cost of $326,340). Change Choice Plan to provide 100% ‘Coverage and waiver of physician co-pays for “preventative care visits/screens” to encourage preventative care and employee wellness initiatives. #** Wellness Incentive for HRRA- (Results in estimated plan cost of $350,000). Provide all permanent employees a $100 incentive bonus for participation in all eligible phases of the Health Risk Assessment offered ‘through Baptist Healthcare. This incentive is recommended to encourage wellness activities and to identify potential high costhigh risk employees. Sec “School Employee Wellness” brochure. ‘© Contract Language with Deadlines and Timelines ‘* United Healthcare Email About Wellness Incentives ‘© Brochure on “School Employee Wellness”-Protecting the Assets of our Nation’s Schools