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Preliminary Insurance Rates: A Letter to OSBA Members
Craig Prewitt, Phoenix-Talent School Board
Chair, OSBA Insurance Trust/OSBA President-elect
June 6, 2007
TO ALL OSBA MEMBERS:
We're not surprised that OSBA's recent insurance rate decision is generating questions. I see this as an opportunity to explain the bigger picture to all OSBA members - and to update you about our move to set the final rate.
Like you, we're health care consumers - so the return of double-digit increases was very discouraging news. But let me emphasize that the 17.84 percent rate we announced was
preliminary. We make this decision each May as a guarantee that actual rates
will not exceed this rate. It is based on only half the year's claims experience. To determine the final rate, we'll work with Regence to scrutinize two more months of experience. While there are no guarantees, the final rate could be lower. It should be available after the OSBA Board meets on June 22.
As you know, we strongly opposed SB 426, the mandatory health insurance pool bill. We're committed now to a realistic transition to the state's new program. New rates will reflect the true cost of the program the state is required to replace. Our decisions regarding rates and ending the Insurance Trust are critical steps in this transition.
Debate over high insurance rates is always expected. The tough decisions we made, including the decision to end the insurance trust, were researched, debated with consultants, attorneys, among ourselves and with other OSBA members, including OSBA Health Insurance Trustees. The board strongly believes the decision to be in the best interest of OSBA members and taxpayers. For over 40 years, school boards have played a large role in our insurance program. With that legacy in mind, here's the question your OSBA Board faced on May 5: Protect services for the sake of ALL members for decades to come; or offer Trust members a one-time rate "buy down" that simply defers the cost increase? We chose to preserve assets for the long-term benefit for everyone.
There's more at stake here than insurance. Our job is to preserve your voice as the policy drivers for public education in Oregon. This means maintaining a vital OSBA, including the staff who serve you, from leadership training and legislative advocacy to assistance at the bargaining table. Our members expect and demand decisions that benefit all members. As the chairman of OSBA's Health Insurance Trust and OSBA president-elect, I wouldn't have it any other way.
Please read the following information and call me or
OSBA staff if you have questions.
Sincerely,
Craig Prewitt, Phoenix-Talent School Board
Chair, OSBA Insurance Trust/OSBA President-elect
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