Details regarding the tentative agreement struck between the Kenai Peninsula Borough School District and the two employee associations were released late Tuesday.
The cap was a funding limit that when surpassed required employees to split costs 50-50. Starting January 2020, every employee will select one of two high-deductible plans, the current high-deductible plan and a new modified one offered in the district’s proposal. Under the new plans, the district will pay 85% of health care costs, while the employee pays 15% with no cap.
Effective January 1, 2020, the KPBSD self-insured plan changes as follows:
• The District agrees to the elimination of the health care cap. (Effective July 1, 2019)
• The high deductible health plan (HRA or HSA) is the only plan offered to employees beyond the effective ratification date of this proposal.
• Eighty-five percent (85%) of the health care costs are paid by the District.
• Fifteen percent (15%) of the health care costs are paid by the employees.
• The District confirms the power and authority of the HCPC to adopt mandatory generic programs and mandatory disease management programs, among other things.
For July 2019 through December 2019, the District will be responsible for 85% of the traditional and HDHP health care plans and the employees will be responsible for 15% of the traditional and HDHP. These contributions will be based on the broker’s recommended rates for those plans as of August 27, 2019. The rates were based on claims through June of 2019.
The agreed upon proposal includes other benefits too. The district is going to put aside $668,748 into the Employee Health Care Reserve Account, an account that is used to pay for health care costs that exceed what’s anticipated in a year. The district is also increasing their annual contributions offering to $800 per employee, which can be used toward medical expenditures.