PROCEEDINGS OF
LAFOURCHE PARISH SCHOOL BOARD
Thibodaux, Louisiana
November 13, 2002
The Parish School Board of the Parish of Lafourche, State of Louisiana, met in special session at its regular meeting place, the Parish School Board Office, located at 805 East Seventh Street, Thibodaux, Louisiana, on Wednesday, November 13, 2002, at 7:15 p.m. for the following purpose:
1. To receive the report of the Insurance Committee, as per meeting held November 11, 2002; and to consider and take appropriate action.
2. To receive the report of the Finance Committee, as per meeting held November 13, 2002; and to consider and take appropriate action.
The Parish School Board of the Parish of Lafourche, State of Louisiana, was duly convened as the governing authority of Consolidated School District No. 1 of the Parish of Lafourche, State of Louisiana, by The Honorable Dave J. DeFelice, Jr.
Ms. Loretta Duplantis read the opening prayer.
President DeFelice then led the board and the audience in the Pledge of Allegiance to the Flag.
Present for roll call were: Mr. Louis E. Thibodaux (District 1); Ms. Rhoda Caldwell (District 2); Ms. Constance T. Williams (District 3); Ms. Martha S. Zeringue (District 4); Dr. Judy G. Theriot (District 7); Mr. Dave J. DeFelice, Jr. (District 8); Ms. Loretta Duplantis (District 9); Mr. Dennis Jean’ Chiasson (District 10); Mr. Roy Landry (District 11); Mr. John Danos (District 13); Mr. Paul Chiquet (District 14); Ms. Rebecca Duet (District 15).
Absent were: Mr. Jessie Fabiano (District 5); Mr. G. A. Rodrigue, Jr. (District 6); Mr. Aubrey J. Orgeron (District 12).
President DeFelice called on Chairperson Williams, who gave the report of the Insurance Committee, as per meeting held November 11, 2002. At the conclusion of the report, Business Manager Don Gaudet noted that the time of the employee workshop as mentioned in the report was changed after the Insurance Committee meeting was held. He said that the employee workshop at each site will now begin at 6:30 p.m. (instead of 6:00 p.m., as reflected in the report). Ms. Zeringue and Mr. Landry then noted several typographical errors in the report and asked that the official board minutes reflect the corrections. President DeFelice stated that the corrections would be duly noted. Dr. Theriot asked if the employees would be notified of the time change. Superintendent Broussard stated that notices of the meeting dates and times would be sent out to employees and retirees immediately after tonight’s meeting. On motion of Chairperson Williams, seconded by Mr. Thibodaux and unanimously carried, the board accepted the following report of the Insurance Committee meeting held November 11, 2002, as read and corrected:
The Insurance Committee of the Lafourche Parish School Board met on Monday, November 11, 2002, at 11:00 a.m. in the boardroom of the central office in Thibodaux, Louisiana.
Committee members present were: Ms. Constance Williams (Chairperson), Ms. Rebecca Duet, Ms. Loretta Duplantis, and Mr. Jessie Fabiano.
Absent were: Mr. Paul Chiquet and Mr. G. A. Rodrigue, Jr.
Other board members present were: Mr. Dave DeFelice, Jr. (President), Dr. Judy Theriot, Ms. Martha Zeringue, and Ms. Rhoda Caldwell.
Insurance Advisory Committee members present were: Mr. Steven Stilts, Ms. Carol Domangue (for Mr. Shelton Mahler) and Ms. Judith Caillouet.
Others present were: Mr. Elmo Broussard (Superintendent), Mr. Don Gaudet (Business Manager).
Ms. Williams called on Mr. Gaudet to give the committee the rate structure information for Options 10 and 12. Mr. Gaudet gave the committee three reports. The one titled 2003 ASO Premium Rate Equivalents was prepared by United HealthCare and contained the rate structures for each level of total cost: expected, mid-level and maximum. The report also showed the calculations used to determine the premiums for each level. The difference between the rates was the percentage included in the line titled “Claims margin as a % of claims.” This line was 0% of expected cost, 12.5% for mid-level cost, and 25% for maximum-level cost. The rates were also divided into two categories: Active Employees and Retirees.
Mr. Gaudet then gave the committee two additional reports. One was titled 2003 Group Plan Year Rate Structure: Option 10 and the other was titled 2003 Group Plan Year Rate Structure: Option 12. Both reports contained renewal information presented in a similar manner. Each report had the benefit structure for the option on the cover page. The reports were then divided into three major sections: one for expected cost, one for mid-level cost and one for maximum-level cost. Each section contained three rate structure tables: one where the increase is split using the existing EE/ER ratio, one where the split is 40% EE and 60% ER, and one where the split is 50% EE and 50% ER. Each rate structure table was divided into four categories of rates: employee, >30 retiree (retirees with more than 30 years of service), <30 retiree (retirees with less than 30 years of service), and SP (surviving spouses). Each rate structure table also included a column that contained the number of subscribers for each premium category, the 2002 monthly rates, the projected 2003 monthly rates, the total yearly premiums and the monthly increase in premiums.
The committee began a lengthy discussion during which they asked for additional information from Mr. Jones and Mr. Gaudet. After the discussion, Ms. Duet offered a motion to recommend to the school board to accept Option 10. The motion was seconded by Ms. Duplantis and passed by a vote of 3 for and one against. Mr. Fabiano voted against the motion.
After further discussion, Ms. Duet offered a motion to recommend to the school board that it split the additional premium using a ratio 40% employee/retiree and 60% employer. The motion was seconded by Mr. Fabiano and passed by a vote of 3 for and one against. Ms. Duplantis voted against the motion.
During the discussion, Ms. Williams asked Superintendent Broussard to arrange a meeting of the Policy and Procedure Committee to consider changes to the policy manual that relate to eligibility in the group health plan. Mr. Broussard told the committee that he would make the arrangements. Ms. Williams then asked Mr. Jones if he could conduct workshops for the employees and retirees who are interested in the group health plan. Mr. Jones said that he could, and the following schedule was agreed to:
Tuesday, November 19, 2002 at South Lafourche High
Wednesday, November 20, 2002 at Central Lafourche High
Thursday, November 21, 2002 at Thibodaux High
At each site, the retiree workshop will start at 10:30 a.m., and the employee workshop will start at 6:00 p.m. Both workshops will be conducted in the school’s auditorium.
There being no further business, Ms. Duet offered a motion to adjourn the meeting. The motion was seconded by Mr. Fabiano and passed without opposition. The meeting was adjourned at 12:55 p.m.
Constance T. Williams, Chairperson
President DeFelice then called on Mr. Ben Jones, who addressed the board about changing its policy concerning Medicare recipients who are paying the reduced premium rate because of Medicare -- specifically, to add a statement that retirees and their dependents eligible for Medicare must enroll in Medicare Part A and B to get the Medicare rate and must provide the Insurance Department with proof of such coverage. President DeFelice asked Business Manager Gaudet to meet with Mr. Jones to prepare the proposed policy change for presentation at the next Policy and Procedure Committee meeting.
(This concludes the report of the Insurance Committee and any action taken by the board in connection therewith.)
Next, President DeFelice called on Mr. Landry, who, in the absence of Chairperson Orgeron, gave the report of the Finance Committee, as per meeting held on November 13, 2002. At the end of his report, Mr. Landry presented the following recommendations on behalf of the Finance Committee:
1. To adopt Option #10, funded at the 40%/60% level; to authorize Superintendent Broussard and Business Manager Gaudet to designate the unencumbered amount of the MFP, $800,000, to pay for the board’s share of the monthly premium; and to direct the superintendent to report back to the board as soon as possible as to where the remaining funds are going to come from to fund the additional board share, and also to designate the excess receipts of oil royalties to the reserve for group insurance.
On motion of Mr. Landry, seconded by Ms. Duplantis and unanimously carried, the board adopted Option #10, funded at the 40%/60% level; authorized Superintendent Broussard and Business Manager Gaudet to designate the unencumbered amount of the MFP, $800,000, to pay for the board’s share of the monthly premium; and directed the superintendent to report back to the board as soon as possible as to where the remaining funds are going to come from to fund the additional board share, and also designated the excess receipts of oil royalties to the reserve for group insurance.
(Mr. Landry continued with the reading of the committee’s recommendations.)
2. To direct Superintendent Broussard and Business Manager Gaudet to continue to search for money to increase salaries in the hopes of increasing salaries for employees to offset the increase in insurance premium costs.
On motion of Mr. Landry, seconded by Ms. Williams and unanimously carried, the board directed Superintendent Broussard and Business Manager Gaudet to continue to search for money to increase salaries in the hopes of increasing salaries for employees to offset the increase in insurance premium costs. Before considering acceptance of the report, Ms. Duet stated that she was in attendance at the committee meeting and asked that the report reflect her attendance. Also, Dr. Theriot noted several typographical errors in the report and asked that the official board minutes reflect the corrections. President DeFelice stated that the corrections would be duly noted. On motion of Mr. Landry, seconded by Mr. Thibodaux and unanimously carried, the board accepted the following report of the Finance Committee held November 13, 2002, as read and corrected.
A meeting of the Finance Committee was held on Wednesday, November 13, 2002, at 6:00 p.m. in the boardroom of the Lafourche Parish School Board building, located at 805 East Seventh Street, Thibodaux, Louisiana.
Members present were: Mr. Dennis Jean’ Chiasson, Dr. Judy Theriot, Ms. Martha Zeringue, and Mr. Roy Landry.
Mr. Aubrey Orgeron, Mr. G. A. Rodrigue, and Mr. Jessie Fabiano were not in attendance.
Also in attendance were: Mr. Elmo Broussard (Superintendent), Mr. Don Gaudet (Business Manager), Mr. Dave J. DeFelice, Jr. (Board President), Mr. Louis Thibodaux (Vice-President), Ms. Rhoda Caldwell, Ms. Loretta Duplantis, Mr. John Danos, Mr. Paul Chiquet, Ms. Rebecca Duet and new board members Mr. Robert Naquin and Ms. Stella Lasseigne.
Mr. Landry agreed to serve as chairperson in the absence of Mr. Orgeron. After the roll call, Mr. Landry called upon Business Manager Gaudet, who explained that the purpose of the meeting was to receive the report of the Insurance Committee on the cost of the 2003 Group Health Insurance Program and take appropriate action. Mr. Gaudet went on to explain that the Insurance Committee had met several times in the past weeks to review many renewal options in an attempt to secure the best possible insurance coverage proposal which would be affordable to both the employees and board.
The following proposal was agreed upon and is being presented to the Finance Committee for consideration and approval.
BENEFITS: CURRENT OPTION 10 PROPOSAL
Network Providers:
Office Visit $30.00 $50.00
Deductible $500/$1000 $1000/$2000
Coinsurance 90% 80%
Out of Pocket $1000/$2000 $2000/$4000
Non-Network Providers:
Deductible $500/$1000 $2000/$4000
Coinsurance 70% 60%
Out of Pocket $5000/$10000 $4000/$8000
Pharmacy 5/20/45 5/25/50 + $100 deductible
Option 10 -- 40% Employee (EE)/60% Employer (ER) Split Coverage Cost
|
Coverage Levels |
Current Rates |
2003 Proposed Rates |
||||
|
|
EE |
ER |
TOTAL |
EE |
ER |
TOTAL |
|
Employee Only |
$ 59.96 |
$161.59 |
$221.55 |
$ 95.14 |
$214.35 |
$309.49 |
|
Employee + 1 Dependent |
$169.45 |
$259.55 |
$429.00 |
$237.56 |
$361.72 |
$599.28 |
|
Employee + Family |
$333.39 |
$332.68 |
$666.07 |
$439.31 |
$491.31 |
$930.45 |
Mr. Gaudet also explained that the method used for Medicare claims was also being proposed. Last year a “come out whole” method was used and this year a “Medicare Supplement” method will be used on all Medicare claims.
Mr. Gaudet went on to explain that the increases would be shared by the employees and employer on a 40% increase for employees and 60% increase for the board. He explained that the increase reflected expected costs. At the present time the board is only responsible for payment of the first installment on the premiums, which spans January through June 2003. However, it will be necessary to find funding for the second half of the year in order to meet the responsibility for premiums July through December 2003. Mr. Gaudet explained that the remaining reserve in the group insurance fund and the expected increase in oil royalties could be used for the 2003 fund reserve and that the unencumbered MFP allotment would fund the portion of the expected increase in monthly premium that is paid by the General Fund.
Mr. Ben Jones, representing United HealthCare, addressed committee members in an attempt to clarify any questions regarding the proposal as well as how an increase/decrease in membership may affect premiums.
After a brief discussion, Dr. Theriot made a motion to recommend to the full board the adoption of Option #10, funded at the 40%/60% level, and to direct Mr. Broussard and Mr. Gaudet to designate the unencumbered amount of the MFP, $800,000.00, to pay for the board’s share of the monthly premium and that Superintendent Broussard report back to the board as soon as possible as to where the remaining funds are going to come from to fund the additional board share, and also to designate the excess receipts of oil royalties to the reserve for group insurance. The motion was seconded by Ms. Zeringue and unanimously passed.
Dr. Theriot offered another motion to direct Mr. Gaudet and Mr. Broussard to continue to search for money to increase salaries in the hopes of increasing salaries for employees to offset the increase in insurance premiums. Ms. Zeringue seconded the motion, which passed without opposition.
Mr. Landry thanked members of the insurance committee for their long and hard work in reviewing the many proposals in securing the best and most affordable insurance coverage for its many employees.
There being no other business, Mr. Chiasson made a motion to adjourn, which was seconded by Dr. Theriot. The motion unanimously passed. The meeting of the Finance Committee was adjourned at 6:35 p.m.
RECOMMENDATIONS:
1. The Finance Committee recommends to the full board the adoption of Option #10, funded at the 40%/60% level and to direct Mr. Broussard and Mr. Gaudet to designate the unencumbered amount of the MFP, $800,000.00, to pay for the board’s share of the monthly premium and that Superintendent Broussard report back to the board as soon as possible as to where the remaining funds are going to come from to fund the additional board share, and also to designate the excess receipts of oil royalties to the reserve for group insurance.
2. The Finance Committee recommends that the board direct Mr. Gaudet and Mr. Broussard to continue to search for money to increase salaries in the hopes of increasing salaries for employees to offset the increase in insurance premium costs.
Mr. Roy Landry, Acting Chairperson
(This concludes the report of the Finance Committee and any action taken by the board in connection therewith.)
In considering Agenda Item No. 7, Superintendent Broussard asked for a two-thirds vote to amend the agenda item so that he could discuss teacher parking lot problems at two other schools. On motion of Mr. Chiasson, seconded by Ms. Duet and unanimously carried, the board allowed the superintendent to amend the agenda item. Superintendent Broussard stated that the teacher parking lots at Bayou Blue Elementary School, St. Charles Elementary School, and Thibodaux Elementary School are in deplorable condition. He asked that the board authorize him to secure quotes in order to hard surface the teacher parking lots at these schools. On motion of Mr. Thibodaux, seconded by Mr. Landry and unanimously carried, the board authorized the superintendent to secure quotes in order to hard surface the teacher parking lots at Bayou Blue Elementary School, St. Charles Elementary School, and Thibodaux Elementary School.
On motion of Mr. Landry, seconded by Ms. Caldwell and unanimously carried, the meeting was adjourned at 7:47 p.m.
DAVE J. DEFELICE, JR. ELMO BROUSSARD
President Secretary