1. Report to the Board: The CAL-PERS Transition

2. Definitions
“Legacy plans”– The original insurance plans offered to employees in the District. Still offered to ACE employees.
”Insurance broker” –Offers health insurance plans from others.
“Employee monthly contribution”—Cost per month of health insurance plan for an employee.
“Out-of-pocket expenses” – What an employee pays for specific health care events not covered by health insurance.

3. What led to the transition to CAL-PERS.
Employee monthly contributions began to spike in 2014.
WVMCEA approached Administration to mitigate the employee monthly contributions.
The Administration concluded that CAL-PERS as insurance broker would substantially reduce employee monthly contributions.

4. 2013/14 to 2014/15 Legacy Plan Rates*
Health Care Plan
2013/14
2014/15
Kaiser $0
$149
PPO
$206
$252
HMO
$289
$320
*All rates rounded downward to nearest dollar.

5. 3 Criteria for New Plans 1) Similar plans.
2) Lower employee monthly contributions.
3) Long-term sustainability.

6. The Performance of CAL-PERS in the Last 2 Years.
1) Similar plans.
2) Employee monthly contributions.
3) Long-term sustainability.

7. Employee Monthly Contribution Comparison—2015
Insurance Plan
Legacy Cost
CAL-PERS Cost
Kaiser
$149
12/25/32
PPO (PERS Choice)
$252
14/13/12
HMO (Anthem Trad.)
$320
141/266/342

8. Employee Monthly Contribution Comparison—2016
Insurance Plan
Legacy Cost
CAL-PERS Cost
Kaiser
$223
44/89/115
PPO
$416
112/208/266
HMO
$410
141/266/342

9. Employee Monthly Contribution Comparison—2017
Insurance Plan
Legacy Cost
CAL-PERS Cost
Kaiser
$220
0/0/0
PPO
$487
59/107/135
HMO
$498
219/426/551

10. Annual Employee Monthly Contributions Legacy Plans
2015
2016
2017
Kaiser
$149
$223
$220
PPO
$252
$416
$487
HMO
$320
$410
$498

11. Annual Employee Monthly Contributions CAL-PERS Plans
2015
2016
2017
Kaiser
12/25/32
44/89/115
0/0/0
PPO
14/13/12
112/208/266
59/107/135
HMO
141/266/342
169/322/414
219/426/551

12. Impacts. Plans are similar, not identical.
Greater potential out-of-pocket costs.
Mitigated by FSA and tax write-offs.
Greater need for long-term planning by employees.

13. The District’s Position
Some money saved on less expensive employer contributions, especially to retirees.
Savings essentially “passed on” to CAL-PERS participants— raising the cap (this year to 90%).
Not a principle, but a very desirable outcome.

14. Success?
The three criteria met.
Employee reaction.

15. One More Thing . . . Plans Legacy Plan (2017) CAL-PERS WVMCCD (2017)
FOOTHILL-DEANZA CAL-PERS (2017)
Kaiser
$220
0/0/0
108/216/324 (amounts as corrected at BOT meeting)
PPO
$487
59/107/135
152/304/456
HMO
$498
219/426/551
214/428/642