1. Association of Metropolitan School Districts

2. Statewide Health Insurance Plan (SHIP) bill April 17,2009 C O R P O R A T E H E A L T H S Y S T E M S, I N C.

3. Purpose To share information to help you take an informed position on the SHIP bill.

4. SHIP Bill =

5. Bill Proposes – Subject to change What Requires membership in the Public Employees Insurance Program (PEIP)

6. What is PEIP? Legislature 1990 Medical Dental Life Insurance Coverages offered: Medical plans: 1. Advantage – Highest level of benefits 2. Advantage Value – Mid level benefits 3. Advantage HSA – Consumer driven model Blue Cross Blue Shield Health Partners Preferred One Contractors:

7. PEIP – other info Alexandria School District Number of members PEIP relationship to State Insurance Plan (SIP) Why hasn’t PEIP been more successful? Bill proposes using SIP’s provider networks

8. Bill Language – Subject to change Who All school district employees Except : Charter Schools Self Insured School Districts What Requires membership in the (PEIP) Who will govern? State Employee Insurance Committee (14 members) When Jan 1, 2011

9. o Organizational capacity Current membership to over 100,000 lives? Conversion Assessment

10. Insurance Consultant can do a written comparison o Organizational capacity o Benefits Comparison Conversion Assessment

11. o Benefits Comparison o Disruption = changing providers Insurance Consultant can do a written comparison o Organizational capacity Conversion Assessment

12. o Benefits Comparison o Disruption o Premiums Underwriting  Experience Pool – PEIP separate pool for school districts Statewide? Regional? o Organizational capacity Conversion Assessment

13. o Benefits Comparison o Disruption o Premiums Underwriting  Experience Pool – PEIP separate pool for school districts  Subsidy – buying of business School employees = higher claims - pharmaceuticals Study shows possible buying of school district accounts Conversion Assessment o Organizational capacity

14. o Benefits Comparison o Disruption o Premiums Underwriting  Experience Pool – PEIP separate pool for school districts  Subsidy – buying of business  Reserves Will PEIP reserves be consolidated? Conversion Assessment o Organizational capacity Size of reserves?

15. o Benefits Comparison o Disruption o Premiums o Negotiations Conversion Assessment o Organizational capacity Review your collective bargaining agreements

16. Insurance consultant – benefits comparison and disruption report Question – PEIP experience pool – Statewide or Regional? To share information to help you take an informed position on the SHIP bill. Summary Review your collective bargaining agreements Will PEIP reserves be consolidated?

17. Thank you End C O R P O R A T E H E A L T H S Y S T E M S, I N C.