We've been getting calls about next year's health insurance rates as boards sharpen their budget pencils for 2008-09. With the start-up of the Oregon Educators Benefits Board (OEBB), this is an unusual year for many reasons.

Determining rates is complicated, since everything hinges on several factors. One, obviously, is the size of the pool. We anticipate two-thirds of current members will be required to enter OEBB on 10-1-2008. The remaining pool size has a significant impact on our "buying power" and our rates.

Our goal is to continue to negotiate an insurance benefit package with Regence for as long as we can provide a cost-effective high-quality program for our members.

Despite these unknowns, it's important to give you an estimate for budget purposes. Our dilemma is how to determine that estimate, as there are still so many variables coming into play. At this time, we suggest districts expect a minimum of 15-16 percent increase in total premiums. This estimate is based on these factors:

1. National trend conservatively estimates a 15 percent increase
   
2. Preliminary information from OEBB regarding comparability and comparable rates suggest potential increases to current rates of 12 percent due to health trends, up to 2 percent for administrative costs and 2 percent for recovery of start-up costs.

This all suggests that rates could increase by as much as 16 percent.

We're working with Regence of Oregon (BlueCross BlueShield) to determine rates for the 2008-09 policy year. We expect to have the final rates from them in June.

Questions? Please call me or Angie Peterman ... no doubt many of your business managers have been talking to Angie already! We'll tell you as much as we can.