CAT Tracks for April 25, 2005 A DECISION MUST BE MADE!

A representative for Principal Insurance made his presentation concerning group health insurance coverage to those assembled on the afternoon of April 25, 2005. There were no surprises. The benefits and rates are as advertised in the April 19th edition of the CAT Tracks.

The only significant differences seem to be:

1. Emergency room visits under BCBS were a flat $75, whereas for Principal it is $50 plus coinsurance (deductible/80%).

2. Doctor's visits were $20 under BCBS, whereas for Principal they are $15.

3. The "out-of-pocket expense limit" is the same for both - $2000 per person, but the "per family" limit is $6000 under BCBS, whereas for Principal it is $4000.

4. The prescription drug card under BCBS was tiered at $10/$20/$35, whereas for Principal it is tiered at $10/$25/$40. Also, for prescription drugs, the mail service program for BCBS gave you 3 months for the cost of 2 months, whereas for Principal it is 3 months for the cost of 2 and 1/2 months.

So...coverage-wise, it is probably a "wash".

The advantage that Principal Insurance offers is its proffered rates..."free" this year for the employee - since the BOE currently pays $444 per month and the Principal rate for employee is $441. The new BCBS rates are $503 for the employee...meaning you will pay $59 per month. At the other extreme, the Principal family plan rate is $1135, whereas the new BCBS rate (after cost shifting) is $1324. For employee/spouse, the Principal rate is $915 as compared to BCBS's $1044. For employee/children, the Principal rate is $661 as compared to BCBS's $873.

Unfortunately, there were not enough BCBS members present (less than a majority) to conduct a vote on what direction to take. Therefore, voting will be conducted on Tuesday morning at school.

On Tuesday morning, current members of BCBS will receive two things:

1. A ballot to indicate your preference - BCBS or Principal, and

2. An application to be submitted to Principal - IF the balloting indicates that Principal Insurance is the group's preference. (We are on a VERY tight schedule. IF we are to make a switch in carriers, applications need to be completed and delivered to Principal Insurance no later than Friday of this week.)

Hopefully, balloting will be completed by noon and the results announced shortly thereafter.

IF the preference is Principal, the insurance committee requests that completed applications be turned in by Tuesday afternoon. You would return the application to the person who gave it to you.

IF the preference is BCBS, then you need do nothing more.