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OSBA to manage health insurance program during transition to OEBB
To continue its health insurance programs and protect services to Oregon's school, ESD and community college board members, the OSBA Board took several actions during its May 5 meeting in Salem.
The meeting was called in response to the recent passage of Senate Bill 426, which created the statewide educators' insurance pool as of Oct. 1, 2008. Actions include:
The OSBA board created an Insurance Oversight Committee to shift responsibility for the insurance program from the trust to OSBA. Participating districts' insurance plans and services will continue until districts roll into the Oregon Educators Benefit Board pool (all must be enrolled in OEBB by 2010). Committee members: Craig Prewitt (Phoenix-Talent), OSBA president-elect and chair of the OSBA Health Insurance Trust; Sherry Duerst-Higgins (South Lane/Lane ESD); David Beeson (Silver Falls), and Kevin McCann, who will serve as insurance program administrator.
After having discussed with trustees the pros and cons of terminating the trust for several weeks, the board voted unanimously to terminate the Health Insurance Trust effective Oct. 1, 2007.
"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."
- Craig Prewitt
OSBA president-elect and OSBA Health Insurance Trust chair
"With OEBB starting next year, the reason for the trust - long-term insurance rate and reserve planning - no longer exists," said McCann. "However, we are committed to helping members transition to OEBB by continuing the trust's insurance plans until that time, so the new committee will assume the management of the insurance program through OSBA. We believe that our actions best serve the interests of all members: preserving OSBA services while managing a short-term insurance program."
"The bottom line is in a few short years, we'll no longer be in the health insurance business and we'll lose our bargaining power with Regence. We need to prepare now for that time."
To explain the many issues and reasons behind dissolving the trust, the board adopted a two-page
resolution
(17k
 ).
"...the OSBA shall invest the remaining funds, utilizing any earned interest as a revenue source for the association to continue OSBA services and programs until such time as the principal may be used for purposes identified by the OSBA to assist districts in the long-term management of health care costs and/or assist OSBA members in performing their governmental functions in a cost-effective way."
- Excerpt from the May 5 Board Resolution
dissolving the
OSBA Health Insurance Trust
"Although we fought the mandatory insurance pool, it's time to be proactive for the sake of our members," said Prewitt.
"Our action meets three major needs," he added. "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 for some unforeseen future need. The founders of the trust had this in mind 40 years ago when they included a section in the Trust Agreement that protects OSBA services. We should continue this legacy.
"If the OSBA is diminished by losing strength in the legislature or at the bargaining table, or by dropping services our boards need, schools, students and taxpayers will be the losers. A strong OSBA means that school boards will continue as the primary policy drivers for public education."
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