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A. CALL TO ORDER

President Susan Lowy called the meeting to order at 12:12 p.m.

B. DECLARATION OF QUORUM

President Susan Lowy, Vice President Marc Chaloupka, Trustees Tim Jones and Steve Aldrich were present. Secretary Dayne Foster, Trustees Larry Johnson and Mary Broussard were absent.

C. BUSINESS AFFAIRS
1. Consider Approval of Health Insurance Proposal and Rate Structure for 2002-03

Mike Ball, Deputy Superintendent for Business and Operations, presented information for the services and insurance coverages associated with the College Station ISD Employee Benefits Plan. Based on the resultant funding shortfall, the Employee Benefits Committee recommended that the dental and prescription drug benefits be converted to voluntary plans. The hope was that these two changes would result in sufficient savings so that a rate increase for the medical coverage would not be necessary. However, those two changes will not be sufficient to preclude a proposed rate increase for the medical insurance. Mr. Ball reported that unfortunately, significant increases to the employee contribution are necessary in order to maintain the financial viability of the Plan.

The recommendations for Health Insurance Coverage Plan Year Ending 8/31/03 are:

Accept the proposal from HealthFirst for Third Party Administration and
Stop Loss (Reinsurance) Coverage

Utilize the Private Healthcare Systems (PHCS) Preferred Provider Network. Negotiate contracts with specialists as necessary.

Convert the prescription drug plan to a voluntary plan which would be a
part of the partially self-insured medical plan.

Convert the dental coverage to a voluntary fully insured plan that would no
longer be a part of the partially self-funded medical plan. Employees who
desire to purchase the coverage would pay the premiums through payroll deductions. Coverage to be provided by Trustmark Premier Plan.

Utilize MM Solutions for utilization review services.

Renew existing Life and Accidental Death and Dismemberment coverage
with Reliance Standard Life Insurance Company and Sun Life Insurance Company.

Renew Cafeteria Plan (IRC Sec. 125) administration with HealthFirst.

Renew Employee Assistance Program with Worker's Assistance Program.

Vision coverage (a voluntary plan) is currently in the second year of a
two year rate-guarantee. No action is necessary on that coverage.

MOTION 3375: I move to approve the Recommendations for Health Coverage as presented and to continue the district contribution of $300 toward Employee coverage, increase the district contribution by $50 toward Employee-Spouse coverage, increase the district contribution by $25 toward Employee-Child/Children coverage, and increase the district contribution by $25 toward Employee-Family coverage. The motion was made by Marc Chaloupka and seconded by Steve Aldrich. The motion passed with four ayes.

D. ADJOURNMENT

MOTION 3376: I move to adjourn the meeting. The motion was made by Marc Chaloupka and seconded by Steve Aldrich. The motion carried with four ayes.

Without objection, President Lowy adjourned the meeting at 1:00 p.m.

SUSAN LOWY DAYNE M. FOSTER
PRESIDENT SECRETARY

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