• Rate increases are volatile. In fact, since 1999, we've had two years of much higher increases. For perspective, averaged over 10 years, the increase is nine percent a year. Increases: 2000 - 19.30 percent; 2001 - 13.43 percent; 2002 - 26.15 percent; 2003 - 16.65 percent; 2004 - 9.26 percent; 2005 - 8 percent; 2006 - 1.40 percent; 2007 - 17.84 percent. 
  
• To keep OSBA's preliminary rate in perspective, here are other recently announced rates: CIS (City County Insurance Services) - 15 percent*; OEA Choice - 10.98 percent; PEBB - 10.2 percent; Idaho Statewide Schools Health Insurance Program - 16 percent. 
  ** CIS bought down the rate from 20%.
  
• The new Oregon Educators Benefits Board (OEBB) understands our dilemma. Using reserves to buy down this year's rates could have created eventual trouble for the statewide pool because of a statutory requirement that in the first year districts won't pay higher rates than under their old plans. To this end, the OSBA Board's rate decision was based on its May 5 resolution to adopt rates that reflect true costs.
  
• The average rate increase we announced is preliminary. The final rate could actually be lower. We won't know actual rates until the third week in June when more complete information from the year's experience has been studied.
  
• Buying down rates is a long-term strategy. The OSBA Board faced a policy decision brought on by the passage of SB 426: Spend reserves on a temporary lower insurance rate or preserve assets for the long-term benefit of school boards and taxpayers in fulfilling the governmental purposes of elected school boards. With the end of the Health Insurance Trust, we'll no longer have a renewable asset to stabilize wild rate swings. 
  
• The 17.84 percent increase in premium rates reflects actual insurance costs as negotiated on behalf of the OSBA Health Insurance Trust. The primary reason rates are higher is that claims by people in our program have risen dramatically this year.
  
• By preserving the assets of our trust, we meet three major needs: Continue health insurance services for as long as we can, maintain core OSBA services that keep boards running smoothly - and dedicate a major financial asset to meet future needs.

For questions, contact OSBA Associate Executive Director Ron Wilson via email or at 503-588-2800 or 800-578-6722.

• Oct 1, 2007 Renewal Rates (6/20/07)
• Final insurance average rate lowered to 15.04 percent (6/14/07)
• OSBA clarifies "big picture" on health insurance rates (6/12/07)
• Preliminary Insurance Rates: A Letter to OSBA Members (6/6/07)
• Facts and positions about OSBA's health insurance rate decision (6/6/07)
• Rate Decision Summaries 2006-07 and 2007-08 (15k )
• Graph of Premium Rate Increases 1984 through 2005
• Graph of Premium Reserves 1984 through 2005
• OSBA Board sets rates to cover costs (5/21/07)
• OSBA to manage health insurance program during transition to OEBB (5/8/07)
• Frequently Asked Questions about the termination of the OSBA Health Insurance Trust
• Notification Letter to OSBA Health Insurance Trust Participants (355k )
• Board Resolution dissolving the OSBA Health Insurance Trust (17k )
• OSBA Health Insurance Trust Restated Trust Agreement (580k )
• OEBB Information Center