The OSBA Health Insurance Trust remains the "best buy" for OSBA member districts, following action by the Board of Trustees on May 15 to approve the lowest rate increase since 1996. See Table 1 below for a recent history of OSBA Insurance Trust rate increases.

The overall average rate increase for all OSBA plans will be 1.4 percent starting Oct. 1, 2006. This decision continues the Trust's commitment to help districts control rising health care costs so they can focus resources on education. The renewal rate action is well below the early estimate of no more than 7 percent, which Trustees guaranteed in February. Significant improvements in plan performance made these favorable results possible, according to Trust Chair Craig Prewitt (Phoenix-Talent School Board).

Rates for specific medical, dental and vision plans will be available no later than early June and will be e-mailed to districts and posted online. This will include rates for the new plans effective Oct. 1. See Table 2 below for rate increases by type of plan.

Trustees also took action to create more cost-effective plans and benefits for members:

Improved Drug Coverage - The prescription drug benefit in all medical plans has been streamlined by removing the deductible and redesigned to encourage the use of cost-saving generic medications. A $10 copay will apply for generic drugs. For brand-name drugs the plans will pay 80 percent (formulary) or 50 percent (non-formulary).

New PPO Copay Plan - OSBA Trustees adopted a copay-based PPO plan with an expanded PPO network and favorable pricing. Plan benefits will include $15 copay office visits and 80 percent benefits for preferred providers or 60 percent for non-preferred. Coinsurance will be limited to the first $10,000 in eligible charges. Deductible options of $100, $200, $300 and $500 will be available.

New Integrated Medical-Dental Deductible PPO Plans - The cost-effective combined deductible feature will be an option for the PPO plans. OSBA trustees recognize the popularity of Medical Plan B with the combined deductible for medical and dental expenses and want to make it more widely available.

"The new co-pay and combined medical/dental options will make OSBA-sponsored plans even more competitive, while driving costs down for our members," said Prewitt. "Our ability to control costs positions us for long-term growth because we'll be offering plans that meet the needs of a wider range of OSBA members."

In addition to an annual review of health plan designs, Trustees evaluate how members use health care services and consider new offerings in the insurance industry before making decisions on plan designs and rates for the coming year.

The OSBA Health Insurance Trust is governed by five Trustees appointed by the OSBA Board. They operate the Trust independently from OSBA and maintain policy control over plan design and rates. Members include Prewitt, who also serves on the OSBA Board; Craig Roessler (Silver Falls School District superintendent); Tom Bennett (Coos Bay School Board); Jennifer Heiss, (Creswell School District business manager); and John Peterson, (Hillsboro School Board).