Benefit Plan Recommendations April 14, 2014 Board Meeting

Recommendations Increase District contribution from $225 to $260 Increase premiums by 15% Enter Interlocal agreement with Region 4 ESC for: Online benefit enrollment Dental plan administration Supplemental disability plan administration Basic life insurance administration Supplemental life insurance administration Vision plan administration Supplemental cancer administration Supplemental accident administration

District Contribution 2002 district contribution $ district contribution $ district contribution $ district contribution $ district contribution $ district contribution $260

District Contribution Comparisons DISTRICTPLAN YEARCONTRIBUTION Bridgeport ISD $ Eagle Mountain Saginaw ISD $ HEB ISD $ Denton ISD $ Birdville ISD $ Lake Dallas ISD $ Lewisville ISD - ActiveCare 1HD $ Argyle ISD $ Plano ISD $ Northwest ISD $ Proposed Carrollton-Farmers Branch ISD $ Lewisville ISD -ActiveCare $ Keller ISD $ Krum ISD $ Grapevine-Colleyville ISD $ Carroll ISD $ Garland ISD $ Irving ISD $ Decatur ISD $ Lewisville ISD - ActiveCare $ Lewisville ISD - ActiveCare $356.00

Stop Loss Claims NISD pays the first $150,000 in claims Stop loss picks up after the individual exceeds $150,000 Average 5 stop loss for past 3 years Total plan loss $2.25 million dollars

Self-Insurance Fund Balance 2006 fund balance $536, fund balance $2,100, Clinic Opens 2011 State budget cuts begin 2014 fund balance $500,000 Implementation of Affordable Care Act Stop loss claims Raising costs of benefits

Affordable Care Act impact on Self-Insurance Fund Unlimited Wellness Elimination of pre-existing conditions for children under 19 Extension of dependent children coverage up to 26 regardless of marital status Increase access to mental counseling and treatment Shared Responsibility Mandate Maintenance of efforts Creation of plan that cost less than $110 per month and pays 60% of the benefits Federal Reporting Annually Penalties for non compliance

Benefits of Health and Wellness Center Annual administration cost $1,030,021 Annual plan savings $1,400,000 Overall health costs have increased Wellness Center has allowed NISD’s increase to grow at a much slower pace

Medical Plan Participation 65% of the employee population participate in the medical plan The majority of the participants carry employee only coverage There are 70 district couples who carry employee and family coverage Estimated cost to increase the district contribution is approximately $756,000

Proposed Premium Increases Increase premiums by 15% $17 per month increase for employee only in the Basic Plan $147 per month increase for employee and family in the Core Plan Employees receive $25 per month PHA Incentive for employee only or employee and child coverage Employee receives $50 per month PHA Incentive if employee and spouse participate in the PHA with employee and spouse or employee and family coverage

Premium Recommendations

NISD Comparability Plan to TRS Plan Premiums do not reflect district contribution

Creation of High Deductible Plan High Deductible Plan with PHA Participation PremiumNISD Proposed Premium PHA Fee Proposed Premium Employee Employee + Spouse Employee + Children Employee + Family High Deductible Plan without PHA Participation PremiumNISD Proposed Premium PHA Fee Proposed Premium Employee Employee + Spouse Employee + Children Employee + Family

NISD (ACA Compliance) vs TRS (ACA Compliance) Premiums do not reflect district contribution Plan cost can’t exceed $110 Must pay 60% of benefits

Interlocal Agreement with Region 4 ESC Online Enrollment savings of $80, (b) Administration savings of $5,500 Basic life insurance savings of $15,000

Fully Insured Dental Plan Cigna Dental Providers All benefits remain the same except root canals paid at 80% instead of 50% Dental High Plan Premium increase 2.5% Employee $ 47 Employee + Spouse $ 88 Employee + Children $ 74 Employee + Family $ 120 Dental Low Plan Employee $ 25 Employee + Spouse $ 45 Employee + Children $ 37 Employee + Family $ 58

Other Recommended Changes Supplemental long term disability all current employees guaranteed issue policies Supplemental life insurance guaranteed issue policies Vision insurance provider network will remain VSP with a change in administrator Supplemental Cancer and Accident Plans Discontinue offering AFLAC plans. Current participants can continue to have payroll deductions.