WBCOE Approves Increase In Retiree Health Benefits

Wicomico County Board of Education Approves Increase in Retiree Health Benefits, Expands Health Insurance Options for Employees and Retirees Under 65
The Wicomico County Board of Education at its monthly meeting Tuesday, May 12, approved an increase in the percentage of retiree health insurance premiums paid by the Board from 55 percent to 70 percent, funded by insurance savings for active employees and retirees. This change is contingent on the school system aligning its health insurance benefits package with the City of Salisbury and Wicomico County to become a true consortium by Sept. 1. The Board also approved the addition of an Exclusive Provider Option (EPO) Plan to its CareFirst health insurance benefits package, effective Sept. 1. Retiree Health Insurance Benefits Raised to 70 Percent In 2008, the Board of Education voted down a proposal to increase health insurance benefits for retirees, citing the lack of a plan to fund the increase. Since that time, a task force has studied the issue to find solutions, because competitive health insurance benefits for retirees are an important factor in recruiting and retaining a quality workforce for Wicomico County Public Schools. This change places the Wicomico County Public Schools' contribution level at about average for public school systems on the Eastern Shore. Following lengthy discussion by the Board and input from representatives of school system employees and the public, the Board voted 4-1 to increase the Board's share of retiree health insurance costs from 55 percent to 70 percent. Board member Ron Willey, a retired principal, recused himself as a retiree whose benefits would be affected by any decision, and Board member Sue Hitch recused herself as an employee of CareFirst. Robin H. Holloway, Board president, voted against the change. Board Vice President Mark S. Thompson said the increase to 70 percent for retirees will show the Board's appreciation to employees for spending their careers in Wicomico Schools. Board member Brian Kilgore, calling himself a fiscal conservative who voted against the change last year, said that the new plan for funding the increase in retiree health insurance benefits is a sound one that uses existing money, not new money. To fund the estimated $437,000 annual cost of the increase, the school system will use $357,000 that will be realized in savings from the school system forming a true consortium with Salisbury and Wicomico County for health insurance benefits by Sept. 1. Another $40,000 will be realized if approximately 5 percent of employees and retirees under the age of 65 choose the new CareFirst EPO for health insurance, and $40,000 will come from the Rate Stabilization Fund jointly funded by employees, retirees and the school system. If the consortium and the EPO do not yield the anticipated savings in fiscal 2010, the school system will revisit the level at which it funds retiree health insurance. Exclusive Provider Option (EPO) Employees can still opt for the Preferred Provider Network (PPN) offered now, but by selecting the new EPO Plan can save money on health insurance. The school system will also pay less for employees covered under the EPO. Employees, retirees under 65 and the school system can expect their health insurance costs to decrease by approximately 6 percent under the EPO. A Board of Education task force that analyzed and recommended the EPO estimated that approximately 5 percent of employees would opt for the EPO in the first year. The EPO will have the same kind of deductibles and co-pays as the PPN, as well as the same network of providers, but employees who use medical services outside of the network will receive virtually no reimbursement. Emergency medical care required when an employee is located far from the provider network is an exception, and would be considered for reimbursement of some costs. The Board voted 5-0 to add the EPO Plan, with Board member Ron Willey, a retired principal, recusing himself as a retiree whose benefits would be affected by any decision, and Board member Sue Hitch recusing herself as an employee of CareFirst. Hitch and Willey were not involved in closed or open session discussions of the EPO. Details of employee benefits are outlined in the Open Enrollment brochure that every employee receives prior to Open Enrollment. The Open Enrollment period for employee benefits for the plan year that runs from Sept. 1, 2009 to Aug. 31, 2010, is from May 26 to June 19. In addition to the new EPO Plan as an alternative to the PPN/PPO, employees will also have the opportunity to choose new Dependent Term Life Insurance coverage effective Sept. 1. Human Resources will hold Benefit Fairs at the Central Office: Thursday, May 21, 3-6 p.m. (auditorium) Tuesday, May 26, 3-6 p.m. (media center) Monday, June 1, 3-6 p.m. (media center) Wednesday, June 10, 1-4 p.m. (media center)

EDITORS NOTE: While I know it is extremely annoying trying to read one long story made into one paragraph, I personally believe they have provided it as such so you won't read it.

I strongly suggest you read it and with any hope GA Harrison will be providing his version of what we saw last night with our point of view. I will probably follow up after GA has expressed his opinion because it was simply unbelievable.

Nevertheless, the above message is what the BOE wants you to hear, we, as always, will give you the OTHER SIDE in just a little while.