OVERVIEW OF THE OPTIONS AVAILABLE TO MEMBERS OF WVEA Benefits 2011

Health and Welfare Benefit Goals Maintain a balanced program which meets the needs of all our members. Maximize the dollars provided by the WVUSD. Cover all WVEA members and there families. Minimize the out-of-pocket cost for premium plans. Provide WVEA members the flexibility in selecting a program that meets the needs of the employee and his/her family.

Historical Perspective of WVEA Health Benefits 1994  First major change in WVEA’s benefit plans  Creation of Kaiser as a soft cap to control health care cost (Kaiser family soft cap)  Creation of a two tiered system in health care benefits. Employees hired prior (Pre) to 1994 and employees hired after (Post)  Cap Cash in Lieu$3,500  Adjust Cap (2006) $3,370  Re-adjust Cap(2011) $3,000

Health Care Premiums Five Year Rate History Blue Shield Plans HMO26.88%1.26%8.45%22.65%11% POS35.90%3.10%19.83%17.30%11% PPO17.43%-.086%14.24%21.89%11%

WVEA Health Benefits Language ARTICLE 11: FRINGE BENEFITS 11.1 The District is committed to providing Health and Welfare Benefits (fringe benefits) for each eligible full-time employee and his/her eligible dependents, including medical, dental, vision and life insurance protection. The District and Association agree to define eligible dependents as spouses, children up to their twenty-first (21st) birthday or until their twenty-third (23rd) birthday, if they maintain full-time student status (defined as 12 semester units or the equivalent in an accredited institution). In addition, over-age dependents with qualifying disabilities, are eligible for continuation of coverage, when a doctor's certification is provided. Less than full-time employees shall receive fringe benefits proportionate to their part-time status. Will Change with the new federal health plan legislation more to follow.

WVEA Contractual Commitment to Health and Welfare Benefits 11.2 Cost Containment Participation In recognition of the anticipated increases to employee fringe benefits, WVEA agrees to study with the District, through the Insurance Committee comprised of representatives from all employee groups, and pursue opportunities to contain future costs of benefits, while maintaining benefits as best as possible. Options may include but are not limited to revisions of current benefit offerings and plan design, moving to a larger pool of employees, and monitoring closely plan utilization and wellness programs designed to reduce claims.

Insurance Committee 11.8 Insurance Committee The District and Association agree to participate in an insurance committee, which shall be established for the following purposes: Provide an avenue for discussing the District's current fringe benefits program, as well as evaluate the benefits associated with new programs for the purpose of making recommendations for implementation Serve as an Advisory Committee for the purpose of providing information, in a collaborative style, to the negotiating bodies and the general membership of the employee organizations Work to preserve an affordable level of fringe benefits through cost containing efforts, including regular plan design review of copayments.

Health and Welfare Participation The Blue Shield Preferred Provider Option (PPO) would not be immediately available to new teachers hired after May 1, 2006 who have not previously participated in the District medical plan(s). Once tenured, these teachers may opt to be included in the PPO plan at subsequent open enrollment periods Employees working less than full-time, but at least half-time, will have a proportionate amount (same proportion as their working time to full-time) contributed to the medical insurance premium under the same conditions applicable to full-time employees The less-than-full-time employees will be personally responsible for payment of the difference between the amount contributed by the Board and the premium and may authorize a salary warrant deduction for the purpose of paying that portion of the premium for which the employees are responsible For employees working three-fourths time or more, the District will provide the agreed upon dental insurance for the employee and their eligible dependents. For employees working three-fourths time or more, the District will provide the agreed upon vision insurance program for the employee and their eligible dependents.

Cash in Lieu Payment WVEA AGREEMENT UPDATED (FINAL-WVEA RATIFIED ) 11.5 If a member of the bargaining unit is able to provide proof of other medical insurance, then he/she may receive, in lieu of that selection, an amount of cash equal to the annual Kaiser single party contribution in effect for 2006 ($3,370 per year). This will be paid tenthly, October through July and prorated for those employees employed for less than the entire year. MOU ; The value of the medical cash-in-lieu will be reduced from $3,370 to $3,000 starting in January Spouse of Bargaining Unit Member If the cost of the program selected by the district employed couple is greater than the cost of the Kaiser Family Premium, the District will pay 50% of the difference between the cost of the Kaiser Family Plan and the premium for the selected program. The other 50% of the difference will be deducted from the bargaining unit member currently enrolled in medical insurance benefits. The dependent spouse will retain his or her pro-rata cash-in-lieu benefits. The spouse will pay 50% between the difference in their selected coverage and the Kaiser family rate. If that difference exceeds the dependent spouse’s cash-in-lieu benefit, the married couple would not have to contribute beyond the cash-in-lieu amount. This language meets the IRS recommended guidelines.

Current 2010 Benefit Plans

WVEA 2011 Unblended Benefit Renewal Certificated/Classified

Plan Comparison Unblended Certificated and Classified Coverage and Cost

WVEA 2011 Benefit Renewal Blue Cross Option #1

WVEA 2011 CalPERS Renewal Options

WVEA 2011 Members Premium Contribution

WVEA 2011 Benefit Renewal Assumptions The numbers found in the slides are yearly totals. The numbers found in the benefit renewal summary are in monthly (10) totals. WVUSD budgeted 10% or ($1,032,975) over the 2010 total of ($10,329,750) All the premiums quoted represent certificated and classified RFP’s in a unblended renewal (all programs individually quoted and not combined). CalPERS participants can select from the available options based on personal preference. Kaiser family remains the soft cap. Cash-in-Lieu is fixed at $3,000. The choices will be made from one of the following plans; WVEA existing program, Anthem Blue Cross or CalPERS. All RFP’s were solicited by BB&T John Burnham Insurance.

Resource Guide Internet  Calpers.ca.gov  The Health Plan Chooser  Anthem.com/ca WVEA.info  Power Point Presentation Online  Reference coverage sheets;  CalPERS- Kaiser, HMO & PPO  Anthem Blue Shield- Kaiser, HMO, POS, PPO

New Renewal Quote Sept. 14th

Certificated Unblended Quote Assumption