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District health plan forecast shows projected 10% increase; board to consider options including dropping EPO
Summary
Consultants from Lockton told the board the district's self-funded health plan currently projects a roughly $16.4 million plan cost and modeled a 10.3–10.4% funding increase for next year; consultants described three scenarios including keeping current plan design, shifting more cost to EPO enrollees, or eliminating the EPO.
Lockton consultants Matt Tritz and Anthony Kovacker presented a re-forecast of the district's self-funded medical plan administered through Blue Cross and Blue Shield of Kansas City. The consultants said the district's projected total plan cost for the current plan year is roughly $16.4 million and that, without plan design changes, next year's funding rates are modeled to rise about 10.3–10.4 percent.
"We're calling for a budget increase at 10.3%," Matt Tritz said, explaining the forecast process and the components the actuaries consider (medical and pharmacy claims, stop-loss, administration fees and other plan costs). Tritz and Anthony…
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