BHealth Care RFP

As part of the prior negotiations, it was agreed that the District would issue a Request for Proposal (RFP) for health care insurance to private and public insurance providers for potential change effective January 2021.

The Marsh & McLennan Agency (District Broker), prepared and released an RFP on July 2,2020. The insurance carriers were asked to provide proposals that most closely matched the current health plan that Rehn & Associates administers for KPBSD.

The following carriers received the RFP:

AETNA

Moda

Public Education Health Trust (PEHT)

Premera

United Healthcare

The PEHT declined to provide a quote because they were unable to secure stop-loss coverage for the kenai population at a level that was satisfactory to the trust, and they did not want to take on additional risk.

United Healthcare declined to quote due to large claim activity.

Moda Health submitted a proposal that was 25% above KPBSD's current plan rates.

AETNA provided a proposal that was 3% higher than KPBSD's current rates, however, it did not include dental and vision coverage which is currently about 8% of the KPBSD plan ($1,967,969 over the last 12 months).

Premera provided a proposal that presented some potential short term savings with overall long term increases. Upon inspection of the proposal, there were also some significant coverage differences that would have caused additional costs to employees.

Based upon the information provided, the Health Care Program Committee issued an advisory 9-0 vote to remain on our current self-funded health care plan.