News Release

School Board Adjusts Tax Millage, Employee Health Benefits

June 23, 2009

The following are results of two school board votes during the Tuesday, June 23 board meeting.

Tax Millage

The board approved an additional .25 discretionary tax millage levy as authorized by the state legislature effective with the 2009-2010 school year.

Due to an estimated decreased value of properties across Polk County, the additional millage should still result in a decrease compared to prior year’s school taxes for the average homeowner.

The school board voted for the discretionary millage to support students and instructional and support personnel. The additional millage is not final pending a July 28 public hearing on the tentative budget and millage rate and final school board approval of the 2009-2010 budget in September.

Employee Health Benefits

The school board approved a new health plan for its employees and retirees. The following is a summary of the health plan as authored by the school district’s risk management department.

The School Board of Polk County has enjoyed the opportunity to provide our employees with outstanding health care coverage through its self-funded insurance plan. For several years, there have been no plan design changes and no premium increases to employees while health care costs have been rising. At this time, our health plan expenses are exceeding the premiums and the health plan is losing money. Significant plan design changes are now necessary to reduce the expenses in the plan in order for the plan to remain financially viable.

On June 23, 2009, the School Board approved options for the October 1, 2009 Plan Year that we believe will provide a comprehensive health plan for all employees while addressing the need to reduce costs. Employees will have the opportunity to continue a plan that is provided by the School Board at no cost to the employee and at the current dependent rates. Additional “Buy-up” options will also be available during the Open Enrollment. The following highlights the plan options and premiums for the October 1, 2009 Plan Year.

HIGHLIGHTS OF 3160/3161 PLAN OPTION (HRA)

No employee premium; no increase to dependent premiums
PPO Plan with Individual annual deductible $1,250; Family annual deductible $2,500 (innetwork)
Health Reimbursement Arrangement (HRA) up to $1,000.00 . The HRA is funded by the school board and is available to cover out-of-pocket medical expenses. Unused HRA balances will roll over and accumulate from year to year.
Improved Preventive Services benefit. No preventive services maximum. (Removed preventive services cap of $250.00 per year). Beginning October 1, 2009, members enrolled in the plan may receive preventive services such as an annual physical or gynecological exam, pap smears, PSA testing and certain immunizations by paying a 20 percent coinsurance of the BCBS allowed
charges. The deductible will not be applied to Preventive Services.
Employees who participate in the BCBS “Better You from Blue” program, which includes a Personal Health Assessment, screenings for blood pressure, glucose, cholesterol and height and weight will be eligible to receive an additional HRA contribution from the Board.
No Changes to Mammogram – this benefit will continue to be covered at 100%
Improved Prescription Plan – The Generic 90 day co-pay has been reduced to $8.00

HIGHLIGHTS OF THE 3566 PLAN OPTION #1:

Employee premium and dependent premium required
PPO Plan with Individual annual deductible $750; Family annual deductible $1,500 (innetwork)
Primary care physician copayment - $25.00; Specialist copayment - $50.00. All other health care services covered at 80% in-network after meeting deductible.
In-network maximum out-of- pocket $5,000 individual/$10,000 family per year
Improved Preventive Services benefit. No preventive services maximum. (Removed preventive services cap of $250.00 per year) Beginning October 1, 2009, members enrolled in the plan may receive preventive services such as an annual physical or gynecological exam, pap smears, PSA testing and certain immunizations by paying the applicable office visit copayment.
No Changes to Mammogram – this benefit will continue to be covered at 100%
Improved Prescription Plan – The Generic 90 day co-pay has been reduced to $8.00

HIGHLIGHTS OF THE CURRENT PLAN 704 OPTION

Employee premium and dependent premium required
PPO Plan with Individual annual deductible $250; Family annual deductible $500 (innetwork)
Primary care physician copayment - $20.00; Specialist copayment - $30.00.
In-network maximum out-of- pocket $2,500 individual/$5,000 family per year
Preventive services cap of $250.00 per year.
No Changes to Mammogram – this benefit will continue to be covered at 100%
Improved Prescription Plan – The Generic 90 day co-pay has been reduced to $8.00