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