Insurance Committee Administrative Regulations

AR 3425.00

 INSURANCE COMMITTEE ADMINISTRATIVE REGULATIONS
 

* For the purposes of this administrative regulation, “District” will be substituted for “Insurance Committee” when the Insurance Committee’s discretion over reserve fund uses is transferred to the District as a result of the reserve account falling below $400,000.

At not less than one of the Insurance Committee’s quarterly meetings, the committee shall establish insurance rates for each group.  These rates will be generated using recommendations from the stop-loss policy underwriter, taking into account the reserve fund balance, each group’s deductible, and the type of coverage provided to each group. 

Once the rates are established, the amount of insurance coverage provided by the District per FTE for each particular group will be taken away from the established rates.  The remaining balance will be deducted from an employee’s paycheck in equal installments.

 

 

Group

Rate Established By Insurance Committee

District FTE Contribution

Annual Employee Contribution

Monthly Payroll Deduction

KEA – Family

$9,500

$9,500

$0

$0

KEA – Indiv

$6,500

$9,500

$0

$0

IMA – Family

$13,500

$8,500

$5,000

$416.67

IMA – Indiv

$7,500

$8,500

$0

$0

Para – Family

$11,000

$4,000

$7,000

$583.33

Para – Indiv

$4,600

$4,000

$600

$50

**These numbers are not accurate and are intended to be used for illustration purposes only.

 

The insurance committee may vote to use excess reserve funds in the following manner:
     (a)  offset increasing insurance costs

Group

Current Rate

Proposed New Rate

Difference

# In Insurance Pool

Reserve Fund Used

KEA – Family

$9,500

$10,500

$1,000

100

$100,000

KEA – Indiv

$6,500

$7,000

$500

15

$7,500

IMA – Family

$13,500

$13,500

$0

12

$0

IMA – Indiv

$7,500

$7,500

$0

0

$0

Para – Family

$11,000

$12,500

$1,500

50

$75,000

Para – Indiv

$4,600

$4,000

($600)

10

($6,000)

TOTAL RESERVE FUND USED TO OFFSET INCREASING COST

$176,500

**These numbers are not accurate and are intended to be used for illustration purposes only 
   

      (b) reduce the employees’ monthly payroll deductions for insurance

 

Group

Current Monthly Deduction

Premium Reduction

Annual Reduction

# In Insurance Pool

Reserve Fund Used

KEA – Family

$500

$75

$900

100

$90,000

KEA – Indiv

$125

$25

$300

15

$45,000

IMA – Family

$350

$75

$900

12

$10,800

IMA – Indiv

$190

$25

$300

0

$0

Para – Family

$650

$75

$900

50

$45,000

Para – Indiv

$325

$25

$300

10

$3,000

TOTAL RESERVE FUND USED TO REDUCE PAYROLL DEDUCTIONS

$193,800

**These numbers are not accurate and are intended to be used for illustration purposes only.

      (c)  increase employees’ insurance benefits 

Group

Additional Benefit

Annual Premium Change

# In Insurance Pool

Reserve Fund Used

KEA – Family

Eye & Dental

$1000

100

$100,000

KEA – Indiv

Eye & Dental

$1000

15

$15,000

IMA – Family

Decrease Family Deductible to $750

$550

12

$6,100

IMA – Indiv

Decrease Indiv Deductible to $250

$175

0

$0

Para – Family

Rx coverage

$250

50

$12,500

Para – Indiv

Rx coverage

$75

10

$750

TOTAL RESERVE FUND USED TO INCREASE BENFITS

$134,350

**These numbers are not accurate and are intended to be used for illustration purposes only.

Employees will be notified at least two pay periods in advance of changes to their employee contribution payroll deductions for health insurance.

 

KETCHIKAN GATEWAY BOROUGH SCHOOL DISTRICT
Adoption Date:   7/23/08

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