OVERVIEW OF THE OPTIONS AVAILABLE TO MEMBERS OF

WVEA

Benefits 2011

Health and Welfare Benefit Goals

Maintain a balanced program which meets the needs of all our members.

Maximize the dollars provided by the WVUSD.Cover all WVEA members and there families.Minimize the out-of-pocket cost for premium

plans.Provide WVEA members the flexibility in

selecting a program that meets the needs of the employee and his/her family.

Historical Perspective of WVEA Health Benefits

1994 First major change in WVEA’s benefit plans Creation of Kaiser as a soft cap to control health care

cost (Kaiser family soft cap) Creation of a two tiered system in health care

benefits. Employees hired prior (Pre) to 1994 and employees hired after (Post) 1994

2003 Cap Cash in Lieu$3,500 Adjust Cap (2006) $3,370 Re-adjust Cap(2011) $3,000

Health Care PremiumsFive Year Rate History

Blue Shield Plans

2011 2010 2009 2008 2007

HMO 26.88% 1.26% 8.45% 22.65% 11%

POS 35.90% 3.10% 19.83% 17.30% 11%

PPO 17.43% -.086% 14.24% 21.89% 11%

WVEA Health Benefits Language

ARTICLE 11: FRINGE BENEFITS

11.1 The District is committed to providing Health and Welfare Benefits (fringe benefits) for each eligible full-time employee and his/her eligible dependents, including medical,dental, vision and life insurance protection. The District and Association agree to defineeligible dependents as spouses, children up to their twenty-first (21st) birthday or untiltheir twenty-third (23rd) birthday, if they maintain full-time student status (defined as 12semester units or the equivalent in an accredited institution). In addition, over-agedependents with qualifying disabilities, are eligible for continuation of coverage, when adoctor's certification is provided. Less than full-time employees shall receive fringe benefits proportionate to their part-time status.

Will Change with the new federal health plan legislation more to follow.

WVEA Contractual Commitment to Health and Welfare Benefits

11.2 Cost Containment Participation

In recognition of the anticipated increases to employee fringe benefits, WVEA agrees to study with the District, through the Insurance Committee comprised of representatives from all employee groups, and pursue opportunities to contain future costs of benefits, while maintaining benefits as best as possible. Options may include but are not limited to revisions of current benefit offerings and plan design, moving to a larger pool of employees, and monitoring closely plan utilization and wellness programs designed to reduce claims.

Insurance Committee

11.8 Insurance Committee11.8.1 The District and Association agree to participate in an insurance committee,which shall be established for the following purposes:11.8.1.1 Provide an avenue for discussing the District's current fringe benefitsprogram, as well as evaluate the benefits associated with newprograms for the purpose of making recommendations forimplementation.11.8.1.2 Serve as an Advisory Committee for the purpose of providinginformation, in a collaborative style, to the negotiating bodies and thegeneral membership of the employee organizations.11.8.1.3 Work to preserve an affordable level of fringe benefits through cost containingefforts, including regular plan design review of copayments.

Health and Welfare Participation

11.2.3 The Blue Shield Preferred Provider Option (PPO) would not be immediatelyavailable to new teachers hired after May 1, 2006 who have not previouslyparticipated in the District medical plan(s). Once tenured, these teachers mayopt to be included in the PPO plan at subsequent open enrollment periods.

11.3 Employees working less than full-time, but at least half-time, will have a proportionateamount (same proportion as their working time to full-time) contributed to the medicalinsurance premium under the same conditions applicable to full-time employees.

11.3.1 The less-than-full-time employees will be personally responsible for payment ofthe difference between the amount contributed by the Board and the premiumand may authorize a salary warrant deduction for the purpose of paying thatportion of the premium for which the employees are responsible.

11.4 For employees working three-fourths time or more, the District will provide the agreedupon dental insurance for the employee and their eligible dependents.For employees working three-fourths time or more, the District will provide the agreedupon vision insurance program for the employee and their eligible dependents.

Cash in Lieu Payment

WVEA AGREEMENT 2006-2009 UPDATED (FINAL-WVEA RATIFIED 10-24-07) 11.5 If a member of the bargaining unit is able to provide proof of other medical insurance,then he/she may receive, in lieu of that selection, an amount of cash equal to the annualKaiser single party contribution in effect for 2006 ($3,370 per year). This will be paidtenthly, October through July and prorated for those employees employed for less than theentire year.

MOU- 2010-2012; The value of the medical cash-in-lieu will be reduced from $3,370 to $3,000 starting in January 2011.

11.6 Spouse of Bargaining Unit MemberIf the cost of the program selected by the district employed couple is greater than the costof the Kaiser Family Premium, the District will pay 50% of the difference between the costof the Kaiser Family Plan and the premium for the selected program. The other 50% of thedifference will be deducted from the bargaining unit member currently enrolled in medicalinsurance benefits. The dependent spouse will retain his or her pro-rata cash-in-lieubenefits. The spouse will pay 50% between the difference in their selected coverage andthe Kaiser family rate. If that difference exceeds the dependent spouse’s cash-in-lieubenefit, the married couple would not have to contribute beyond the cash-in-lieu amount.This language meets the IRS recommended guidelines.

Current 2010 Benefit Plans

Plan Configuration Kaiser BSHMO BSPOS BSPPO

Office CO-PCP/Spec $10/$10 $15/$30 $15/10%/30% $15/40%OOP Max HMO/PPO/OON I/O NetworkIndividual $1,500 $1,000 $1000/$2000/$5000 $1000/$3000Family $3,000 $2,000 $2000/$4000/$10000 $2000/$6000

In Plan Hosptital 0 NC 0%/10%/30% 10%Out Plan Hospital $10 NC 0%/10%/30% 40%

ER Copays $50 $100 $100 $100

Rx Copays $5/$15/ 100 days $10/$30 $10/$25/$40 $10/$25/$40

Deductible HMO/PPO/OONIndividual NA NA $0/$350/$350 $350Family NA NA $0/$700/$700 $700

Premium/Out of Pocket Pre/PostYearly-CostIndividual $5,210/ $0 $4,550/ $0 $7,070/ $0 $10,500/ $0

Pre-PostIndividual +1 $10,420/ $0 $9,310/ $0 $14,070/ $0 $19,400/ $2,340-$4,670

Pre-Post Pre-PostIndividual +2 $14,730/ $0 $13,720/ $0 $18,890/ $2,080-$4,160 $28,870/ $7,070-$14,140

WVEA 2011 Unblended Benefit Renewal Certificated/Classified

Plan Configuration Kaiser BSHMO BSPOS BSPPO

Office CO-PCP/Spec $10/$10 $15/$30 $15/10%/30% $15/40%OOP Max HMO/PPO/OON In/Out NetworkIndividual $1,500 $1,000 $1000/$2000/$5000 $1000/$3000Family $3,000 $2,000 $2000/$4000/$10000 $2000/$6000

In Plan Hosptital 0 NC 0%/10%/30% 10%Out Plan Hospital $10 NC 0%/10%/30% 40%

ER Copays $50 $100 $100 $100

Rx Copays $5/$15/ 100 days $10/$20 $10/$25/$40 $10/$25/$40

Deductible HMO/PPO/OONIndividual NA NA $0/$350/$350 $350Family NA NA $0/$700/$700 $700

Premium/Out of Pocket% Increase 7.60% 26.80% 35.80% 17.40%Individual $5,610/ $0 $5,770/ $0 $9,610/$0 $12,330/ $0

Pre/Post Pre/PostIndividual +1 $11,210/ $0 $11,810/ $0 $19,120/$1,640/$3,270 $22,780/$3,470/$6,930

Pre/Post Pre/Post Pre/PostIndividual +2 $15,850/ $0 $17,410/ $780/$1,560 $25,670/$4,910/$9820 $33,900/$9,030/$18,050

2010-2011 Plan Comparison Unblended Certificated and Classified Coverage and Cost

Benefits 2010 Benefits 2011Kaiser BSHMO BSPOS BSPPO Kaiser BSHMO BSPOS BSPPO

Plan Configuration

Office CO-PCP/Spec $10/$10 $15/$30 $15/10%/30% $15/40% $10/$10 $15/$30 $15/10%/30% $15/40%OOP Max HMO/PPO/OON I/O Network HMO/PPO/OON I/O NetworkIndividual $1,500 $1,000 $1000/$2000/$5000 $1000/$3000 $1,500 $1,000 $1000/$2000/$5000 $1000/$3000

Family $3,000 $2,000 $2000/$4000/$10000 $2000/$6000 $3,000 $2,000 $2000/$4000/$10000 $2000/$6000

In Plan Hosptital 0 NC 0%/10%/30% 10% 0 NC 0%/10%/30% 10%Out Plan Hospital $10 NC 0%/10%/30% 40% $10 NC 0%/10%/30% 40%

ER Copays $50 $100 $100 $100 $50 $100 $100 $100

Rx Copays $5/$15/ 100 days $10/$30 $10/$25/$40 $10/$25/$40 $5/$15/ 100 days $10/$30 $10/$25/$40 $10/$25/$40

Deductible HMO/PPO/OON HMO/PPO/OONIndividual NA NA $0/$350/$350 $350 NA NA $0/$350/$350 $350

Family NA NA $0/$700/$700 $700 NA NA $0/$700/$700 $700

Premium/Out of Pocket Pre/Post Pre/Post Pre/Post Pre/Post Pre/PostPercent Increase 7.61% 26.88% 35.90% 17.43%

Individual $5,210/ $0 $4,550/ $0 $7,070/ $0 $10,500/ $0 $5,610/ $0 $5,770/ $0 $9,610/$0 $12,330/ $0

Individual +1 $10,420/ $0 $9,310/ $0 $14,070/ $0 $19,400/ $2,340/$4,670 $11,210/ $0 $11,810/ $0 $19,120/$1,640/$3,270 $22,780/$3,470/$6,930

Individual +2 $14,730/ $0 $13,720/ $0 $18,890/ $2,080/$4,160 $28,870/ $7,070/$14,140 $15,850/ $0 $17,410/ $780/$1,560 $25,670/$4,910/$9820 $33,900/$9,030/$18,050

WVEA 2011 Benefit Renewal Blue Cross Option #1

Kaiser BCHMO BCPOS BCPPOPlan Configuration

Office CO-PCP/Spec $10/$10 $15/$15 $15/10%/30% $15/40%OOP Max HMO/PPO/OON In/Out NetworkIndividual $1,500 $1,500 $1000/$2000/$2000 $1000/$2000Family $3,000 $3,000 $2000/$4000/$4000 $2000/$4000

In Plan Hosptital 0 NC 0%/10%/30% 10%Out Plan Hospital $10 NC 0%/10%/30% 40%

ER Copays $50 $100 $100 $100

Rx Copays $5/$15/ 100 days $10/$20 $10/$25/40% $10/$25/$40

Deductible HMO/PPO/OONIndividual NA NA $0/$350/$350 $350Family NA NA $0/$1,050/$1,050 $1,000

Premium/Out of Pocket% Increase 7.60% 16.90% 26.54% 21.80%Individual $5,610/ $0 $5,312/ $0 $8,296/$0 $11,930/ $0

Pre/Post Pre/PostIndividual +1 $11,210/ $0 $11,155/ $0 $17,422/$786/$1,572 $25,053/$3,470/$6,930

Pre/Post Pre/Post Pre/PostIndividual +2 $15,850/ $0 $15,936/ $43/$86 $24,888/$4,519/$9,038 $35,791/$9,970/$19,941

WVEA 2011 CalPERS Renewal Options

Plan Components Office Visit copay Out of Pocket Max Hospital ER Copay Rx Copay Deductibles Co-Insurance Premiums Premium Cost to You (yearly)PCP/Spec Ind/Fam IP/OP Ind/Fam In/Out Net Ind/Ind+1/Ind+2 Ind/Ind+1/Ind+2

Plans Current/PERs Current/PERsPre-Post 1994

Kaiser WVUSD (267) $10/$10 $1500/$3000 NC/$10 Copay $50 $5/$15 100 days $0 $0 $5,210/$10,420/$14,730 $0/$0/$0 -$0/$0/$0

Kaiser PERs #1 $15/$15 $1500/$3000 NC/$15 Copay $50 $5/$15 30 days $0 $0 $5,280/$10,416/$13,540 $0/$0/$0 - $0/$0/$0

BSHMO WVUSD (277) $15/$30 $1000/$3000 NC/NC $100 $10/$20 $0 $0 $4,550/$9,310/$13,720 NA - $0/$0/$0BSHMO PERs Access Value $15/$15 $1500/$3000 NC/NC $50 $5/$15/$45 $0 $0 $5,963/$11,926/$15,504 NA - $0/$0/$982-$1,964

BSHMO PERs Net Value $15/$15 $1500/$3000 NC/NC $50 $5/$15/$45 $0 $0 $5,131/$10,261/$13,340 NA - $0/$0/$0In-Out Net In-Out Net In-Out Net

BSPPO WVUSD (143) $15/40% $1000-$3000/$2000-$6000 10%/40% $100 $10/$25/$40 $350/$700 10%/40% $10,500/$19,400/$28,870 $0/$2,340-$4,670/$7,070-$14,140BSPPO PERs Care $20/40% $2000-NA/$4000-NA $250+10%-$250/40% ? $5/$15/$45 $500/$1000 10%/40% $9,446/$18,893/$24,561 $0/$2,676-$5,353/$5,510-$11,210

BSPPO PERs Choice $20/40% $3000-NA/$6000-NA 20%-40% ? $5/$15/$45 $500/$1000 20%/40% $5,953/$11,907/$15,479 $0/$0-$0/$969-$1,939BSPPO PERs Select $20/40% $3000-NA/$6000-NA 20%/40% ? $5/$15/$45 $500/$1000 20%/40% $5,206/$10,412/$13,536 $0/$0-$0/$0-$0

BSPOS WVEA (149) $7,070/$14,070/$18,890 $0/$0-$0/$2080-$4,160BSPOS PERs Not Available Not Available Not Available Not Available Not Available Not Available Not Available

WVEA 2011 Members Premium Contribution

Current Plan 2010 Current Plan 2011 Blue Cross 2011 Option #1CalPERS 2011Pre Post Pre Post Pre Post Option #1 Option #2 Option #3

Insurance Plans Pre Post Pre Post Pre Post

KaiserEmployee $0 $0 $0 $0 $0 $0 $0 $0

Employee +1 $0 $0 $0 $0 $0 $0 $0 $0Employee +2 (Fam) $0 $0 $0 $0 $0 $0 $0 $0

Blue Shield HMO Access Value Net ValueEmployee $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Employee +1 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Employee +2 $0 $0 $78 $156 $4.30 $8.60 $98.20 $196.40 $0 $0

Blue Shield POS Care Value Choice Value Select ValueEmployee $0 $0 $0 $0 $0 $0

Employee +1 $0 $0 $164 $327 $78.60 $157.20Employee +2 $208 $416 $491 $982 $451.90 $903.80

Blue Shield PPOEmployee $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Employee +1 $234 $467 $347 $693 $347 $693 $267.60 $535.30 $0 $0 $0 $0Employee +2 $707 $1,410 $903 $1,805 $997 $1,994 $551 $1,121 $96.90 $193.90 $0 $0

The values you see in this table are monthly contributions

WVEA 2011 Benefit Renewal Assumptions

The numbers found in the slides are yearly totals. The numbers found in the benefit renewal summary are in monthly

(10) totals. WVUSD budgeted 10% or ($1,032,975) over the 2010 total of

($10,329,750) All the premiums quoted represent certificated and classified RFP’s

in a unblended renewal (all programs individually quoted and not combined).

CalPERS participants can select from the available options based on personal preference.

Kaiser family remains the soft cap. Cash-in-Lieu is fixed at $3,000. The choices will be made from one of the following plans; WVEA

existing program, Anthem Blue Cross or CalPERS. All RFP’s were solicited by BB&T John Burnham Insurance.

Resource Guide

Internet Calpers.ca.gov

The Health Plan Chooser Anthem.com/ca

WVEA.info Power Point Presentation Online Reference coverage sheets;

CalPERS- Kaiser, HMO & PPO Anthem Blue Shield- Kaiser, HMO, POS, PPO

New Renewal Quote Sept. 14th

Benefits 2011 New Quote blended CSEA/WVEA Benefits 2011 New Quote blended Certificated

Kaiser BSHMO BSPOS BSPPO Kaiser BSHMO BSPOS BSPPOPlan Configuration

Office CO-PCP/Spec $10/$10 $15/$30 $15/10%/30% $15/40% $10/$10 $15/$30 $15/10%/30% $15/40%OOP Max HMO/PPO/OON I/O Network HMO/PPO/OON I/O NetworkIndividual $1,500 $1,000 $1000/$2000/$5000 $1000/$3000 $1,500 $1,000 $1000/$2000/$5000 $1000/$3000

Family $3,000 $2,000 $2000/$4000/$10000 $2000/$6000 $3,000 $2,000 $2000/$4000/$10000 $2000/$6000

In Plan Hosptital 0 NC 0%/10%/30% 10% 0 NC 0%/10%/30% 10%Out Plan Hospital $10 NC 0%/10%/30% 40% $10 NC 0%/10%/30% 40%

ER Copays $50 $100 $100 $100 $50 $100 $100 $100

Rx Copays $5/$15/ 100 days $10/$30 $10/$25/$40 $10/$25/$40 $5/$15/ 100 days $10/$30 $10/$25/$40 $10/$25/$40

Deductible HMO/PPO/OON HMO/PPO/OONIndividual NA NA $0/$350/$350 $350 NA NA $0/$350/$350 $350

Family NA NA $0/$700/$700 $700 NA NA $0/$700/$700 $700

Premium/Out of Pocket Pre/Post Pre/Post Pre/Post Pre/Post Pre/Post Pre/Post

Individual $5,610/ $0 $5,780/ $0 $8,980/ $0 $13,330/ $0 $5,610/ $0 $5,664/ $0 $8,676/$0 $13,010/ $0

Individual +1 $11,210/ $0 $11,820/ $0 $17,860/ $1005/2010 $24,630/ $4,390/$8,780 $11,210/ $0 $11,540/ $0 $17,440/$795/$1590 $24,050/$4,100/$8,200

Individual +2 $15,850/ $0 $17,420/ $785/$1570 $23,980/ $4,605/$8,130 $36,650/ $10,400/$20,800 $15,850/ $0 $17,010/ $580/$1,160 $23,410/$3,780/$7,560 $35,780/$9,965/$19,930

Percent Increase 7.61% 26.95% 26.95% 26.95% 7.61% 23.95% 23.95% 23.95%Original Quote Unblended 7.61% 26.88% 35.90% 17.43%

Certificated Unblended Quote Assumption

Kaiser BSHMO BSPOS BSPPOPlan Configuration

Office CO-PCP/Spec $10/$10 $15/$30 $15/10%/30% $15/40%OOP Max HMO/PPO/OON I/O NetworkIndividual $1,500 $1,000 $1000/$2000/$5000 $1000/$3000

Family $3,000 $2,000 $2000/$4000/$10000 $2000/$6000

In Plan Hosptital 0 NC 0%/10%/30% 10%Out Plan Hospital $10 NC 0%/10%/30% 40%

ER Copays $50 $100 $100 $100

Rx Copays $5/$15/ 100 days $10/$30 $10/$25/$40 $10/$25/$40

Deductible HMO/PPO/OONIndividual NA NA $0/$350/$350 $350

Family NA NA $0/$700/$700 $700

Premium/Out of Pocket Pre/Post Pre/Post Pre/Post

Individual $5,460/ $0 $5,770/ $0 $9,610/ $0 $12,330/ $0

Individual +1 $10,812/ $0 $11,810/ $0 $19,120/ $1,918/$3,836 $22,780/ $3,748/$7,496

Individual +2 $15,284/ $0 $17,410/ $1,063/$2,126 $25,670/ $5,193/$10,386 $33,900/ $9,308/$18,616

Percent Increase 3.76% 26.95% 35.90% 17.43%Original Quote Unblended 7.61% 26.88% 35.90% 17.43%