ACHIEVING HEALTH INSURANCE COST SAVINGS

MMSD EMPLOYEES AND DEPENDENTS

I. Objective Obtain data necessary to make informed decisions on structural changes in order to offer MMSD employees quality health insurance while containing costs in the best interests of budgeting, students, teachers and taxpayers

II. Potential Cost Savings (Based on annual health insurance expense of $40,000,000)

05% reduction-$2,000,000 10% reduction-$4,000,000

15% reduction-$6,000,000 20% reduction-$8,000,000

III. Historical Perspective Understand fully what has occurred with MMSD health insurance costs in the period 1990-2005

IV. Current Health Package Obtain a comprehensive picture of the current health packages focusing on premiums, cost sharing, and benefits

V. Proven Cost Containment Strategies Explore proven cost containment strategies in both the public and private sectors

VI. State Employee Health Plan Evaluate options to take MMSD into the state plan

VII. Benefits Study benefit levels with a goal of moderating those benefits that either exceed norms or contribute little to employee health

VIII. Premium Sharing Explore options of meaningful premium sharing for all MMSD employees. Compare sharing with levels in place by other groups in the public sector

IX. Covered Individuals Determine whether individuals covered under the plan are appropriate. Focus on employees with other coverage options, part time employees, retirees, employees on disability, and domestic partners

X. Managed Care Analyze the cost saving potential from using a managed care plan for all employees

XI. Competitive Bidding Evaluate whether competitive bidding for all MMSD employees under a single plan would achieve cost savings

XII. Strategies Develop a listing of cost containment strategies for the district to implement for achieving desired levels of cost management and containment