Lord stops Monday 2026 come to order with your prayers and pledge pray. >> Let's pray. Heavenly Father, thank you Lord for this day. It's the day you've made. We'll rejoice and be glad in it. Father, we pray right now that you bless our time together. Father, as we talk
about insurance, Father, we thank you, Lord, for Ted being here today, Father, and Lord, his team. I pray God that you give us great wisdom and discernment, Father, to to see what is uh best for our employees. And Father, we just uh pray for for a good time of of talking
today. Uh Lord, we love you. Thank you, God, for loving us first. And we pray for our children today. Pray you keep them safe. Uh be with all of our families today, Father. And pray you be with all of our teachers and staff as they do their thing. Lord, pray that you give them a great day. In Jesus name we
pray. Amen. Amen. Pian to the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible, liberty and justice for all
right next presentation discussion. >> Yes, sir. Thank you, Mr. Chair. Yes, sir. >> So, uh good morning everybody. Thank y'all for uh being here. bright brighteyed boot still on a on a Monday morning. Um we it was important that we were all here and I know we were trying to work
out some schedules with them and with us and and it worked out good to for for this to be the date. So thank y'all for being here. Just want to give you a little bit of background before we asked them to speak. Uh few months ago, uh Mr. Kever and Miss Gun, our finance
director, and Ted and I got together and talked uh a little bit about what fleet is. Uh I know that uh Renee sent y'all the the brochure uh on ahead of time. It it kind of gives some brief overviews, but we went over the program. There
there were some challenges at the time and Kev was very u u transparent about that uh dealing with us being dealing with CHP. CHP has a powerful uh presence, would that be the way to say it? uh in our area and we've been blessed. You know, we've we've our our
folks back in the day really wanted to go to to the CHP model after leaving Etna. Um I can tell you that healthc care's been something that you as a board member I know as a thorn in your in your ever living side uh was for me.
Um I I'll go I want to just kind of go back and give you one minute and I'll try to live literally do this in one minute. When I first started teaching school in 1994 in Walculla, I paid $7 a month. >> Um, guess who picked up the rest of it?
Well, it was it was a W color school board and they didn't have to pick up but about a hundred bucks for that. Uh, so it was just, you know, created. The whole thing was aboutund $107. I think they paid 100, I paid seven. Um,
and then fast forward, I got to to the high school year teaching in 95. uh we were with United Healthcare and uh Harold Munford was the broker back then and was they had been with Harold for a long time and even when I became a
school board member in O2 what I saw in O2 and you know as I was politic I was hearing people say we need better insurance better insurance so it's it's always been an issue always uh it will probably continue to be an issue I what
I want us to do as a board and as a district to be in a good position to say we We are constantly shopping for the best deal, best program that meets, you know, because a couple things, meets the needs of our staff and people who are on insurance because not everybody's on the
insurance and that's that's kind of universal. Some people are married to people who work for the state and they have that, you know, that $30 a month healthcare plan which is phenomenal. But I promise you, it's the same insurance that we have, but the state subsidizes that. They pay the other amount over
there and it's still expensive, but they they do that. They will not do that for us. We are not state employees and I have begged since 2002. Is there any way they know? It's because we subsidize or they subsidize it. The reason they pay that we we're part of the Florida
retirement system is because there we're subsidizing. We're putting our money in the district matches it um as far as our their contributions or the district's contributions to your retirement to the employees retirement and all that. So, it it's it's one of those things that we
want to try to rein in because it keeps getting higher and higher and and and our ability to fund raises does not go at that same pace. And so, what you don't want ultimately is somebody who's just working for insurance. You know, some of your lower lower paid employees
that work maybe a few a lot less hours. A lot of your non-instructional staff, they're just working for insurance. And we know that. We don't like it, but we're trying to fix that. And and I don't I we don't know what fix is. I I'm I'm not here today saying fleet's going to be the be all end all, but but there are some wonderful aspects about it that
starts putting us in a different direction. I will tell you this and I'll shut up and turn it over to Ted. Calvin County has been in a self-insured model since 85 and they absolutely love it. Um this is going to be quite similar to that. Uh this is going to have a lot
more people involved in it and I'll let him kind of tell you how many other districts have done it. It's worth a big glance and and I think Mr. Kever and Katie and I were like absolutely we need to look at this. So I'm gonna let him kind of explain that. Please ask questions as long as as as long as he's
here. We want to pick his brain for all information. Again, I don't feel don't feel pressured to settle this today unless we sign. Uh you know, we're not buying a Cadillac today. Uh but we do want to get we do want to get those questions answered and I want to make sure you feel good about it. If y'all
don't feel good about it, then then we can still have those discussions on what what our next move is on any of Okay. So, Ted Rouse, former superintendent, Swany County. Um, great guy. We served together, got went to a lot of fads meetings together. Uh, finally retired
as superintendent, became chancellor over there at DOE, and uh that was uh we were we were all tickled to have him there and then next thing you know, he's not there anymore. But, uh, anyway, he's a great guy. uh he's one of us. He's a he's he's a he's a rural guy and he knows the challenges of rural districts.
So turn over to let him introduce John and we'll go from there. >> Very good. Well, good morning board and uh superintendent. Thank you for having us here today. Uh well, Superintendent Teddy S. U neither one of us actually introduce Dave Steven or Dave. I'm sorry. Dave,
>> neither one of us are uh neither one of us are insurance by trade. We're both uh we're both school district people, former teachers, former assistant presidents, former presidents, former district office folks and uh this is one of those areas that as you all know
being in districts is one of those uh areas that such large cost driver right where would you prefer that I mean you more likely to sit or stand where you are where you are is fine if you want to play around with you now I'm good
we were one board workshop here not too long ago and had a specific place we had to sit. You don't know how to stand for where he had sit. So trying to respect whatever you want have happened here. But uh benefits are such a huge driver, right?
In in the cost of of operating district, you when you're doing your budgetary process and you work together with your CFO and your superintendent, you don't ever talk about salary in in isolation. You don't talk about benefits in isolation. You always say, "Hey, our salaries and benefits together, right?
cost us X Y and Z. And that's why it's important and I applaud you all for taking a look at every option available to you uh in terms of solutions for health insurance. Just a couple quick u points, data points. It's no no surprise. I think superintendent alluded
to it earlier. Uh you know, going back into the 90s of what costs were. Uh the first slide basically shows you that the cost of insurance premiums over the last several years going back to 2018 has risen a lot faster than even the cost of living just the regular cost of
inflation. And we know that inflation by itself since 2018 has had those peaks right that has hit every household. But when you look at it as comparison insurance premiums have risen 45% while in general inflationary index has risen by 17%.
This next slide right here that you see uh is just it's just a snapshot of a survey that was done by education week. It was a nationwide survey conducted among 4,400 school districts. And you can see that 75% of the districts
year-over-year are taking anywhere from 1 to 50% increases in their insurance premiums as public entity groups. Uh again, not surprising. You all deal with the same thing just like I did in swine where you get that renewal and you buckle up. you try to figure out how you going to pay for it, how much is the
board going to pick up, how much are the employees going to pick up. It's never a pretty thing, but we have to deal with it year-over-year with those increases. So, what is the background of fleet? Uh the background of fleet uh the fleet
concept or design, initial design was uh was called Fshaper and it lived under the Florida school boards associated association FSBA through FISB. You all are familiar with MSBA and FSB. I know. Well, Dave Stevens ran FSB for 11 years
as the executive director under FSBA and this program in concept was built uh during his tenure there in in with FISB. So, in April of 2025, FSBIT spun off uh
Fship to FADS to the Florida Association of District School Superintendent. And here's why that's important. Every school district in the state, all 67 school districts are members of FASD, but not all 67 school districts are
members of FISB. FISB represents about 14 districts for property and cadency insurance. And so if you are not a member of FISB and you wanted to join Fship, you wouldn't you wouldn't have any representation on the FSBOT board as having a district inside the Fship
program. Under FADS, all 67 have access. And I'll talk about what that looks like. Do actually runs and operates the trust. It's not a bunch of insurance executives. It's actually school school people and school districts that run uh run a fleet. So uh fleet in that respect
if you'll uh go to the next slide. Background of fleet. I hope you mind don't mind going old school this morning. I like paper and pencil. Give you something to take home and write on and write down questions on. Right. The sole p purpose of fleet is to provide a health insurance trust that uh that
helps bring efficiency u economy scale buying power. Let's face it, when you're a Liberty, when you're a golf, when you're a Taylor, a Swans, a Lefay, a Dixie, you only have so much buying power by yourself, right? And so,
we'll kind of unpack that a little more as to how Fleet uh really, really supercharges small districts and other districts together to try to get better deals for our employees and for the families that we serve. So, what is Fleet? I just mentioned it's
a uh it's a health trust is a nonprofit health trust and so fleet as a solution in school districts. School districts that come to fleet are working with uh an organization fleet that is a a a program of fads and it operates in a
nonprofit uh space that's unlike anything that we find in the private health insurance arena. And that's why quite honestly I was so attracted to it when the opportunity came to go to work senator Mr. for the member districts hopefully is that isn't a nonprofit model as opposed to what we usually deal
with with the for-profit entities, the big brokerage challenges and those kind of things. U our sole goal and purpose in life is to bring savings school districts wherever possible and we'll explain what that looks like a little more. No, no surprise to you all. The
traditional health insurance marketplace is a complex engine. It's a complex uh entity that is hard to understand. It has a lot of things that don't operate in the sunshine. Uh they operate in a
for-profit space and Fleet really strips all of those things out and makes things clear and transparent for school districts that come into our program. So statutory authority, let me just touch on this real quick. Um, nobody likes to talk about statutory authority,
but it's always important, especially for board attorneys to understand how fleet operates in a legal space. So 1128 is the Florida statute that authorizes uh public school districts to be able to help provide use taxpayer dollars to purchase benefits or go to court
employee benefits uh for their uh folks they serve. Number one is that fully insured traditional agent uh broker role with a school district that brings a fully insured program uh to the district to participate in. They bring a renewal
forward. They say, "Hey, here's here's the premium. You all decide how you're going to dice it up between what the board pays and what the employees pay, but here's your renewal." The second bullet there under 11 1208 provides for a district to vote to go
into a self-insured environment where you are independently as a standalone district in the self-insured world in health insurance world. What that means is that you take on all the risk. You are actually paying the claims for your employees out of your health insurance
fund. You're collecting board contribution. You're putting it in in your your bank account. you're collecting the employee portion, putting it into that bank account, and then when so and so gets sick, goes to the doctor or the hospital, you're writing the check back out and repaying the claims.
So, the goal in all that, right, is to make sure you got enough money in the bank to pay the claims that you got year-over-year to still have a little left over. The state says you got to have a 60-day OIR, Office of Insurance Regulation Reserve. 60 days worth of
claims in your saving at any given point in time in that space. Number three is the new piece. It's not new statutoily, but it's new in terms of what Ford school districts now be a part of, and that is the health insurance trust. That's what authorizes Fleet to exist
under FADS as a nonprofit. The idea being that you have to be self-insured to participate in fleet, but you're not self-insured by yourself completely exposed as a and that's that's quite honestly what scared districts away. Scared our district
away. We we would go selfinsured in Swany. We were fully insured for eons for decades. Never been selfured. Finally went that way in 2020. Uh and had some huge successes with that. And so, uh, number three though provides a
self- insurance program for a school district like Liberty and like our own small rural districts with guard rails and safety safety exits built in and and we'll unpack that and talk about that a little more. Uh, the last little statement there by joining fleet the district is in fact joining its own
trust because this district obviously if you're superintendent is a member already fad and fleet is a fad program. So, flip the page. I want to talk a little bit about uh who's participating. And this is really the part that uh being resultsoriented as a teacher, as
an assistant principal, the principal, superintendent, you know, I want to be around things that are that are producing results. Nobody likes to be on the team that's losing. And so, I'm very excited about what's happening in fleet and being able to be a part of this given that we started with three original districts. You'll see we had
three original districts there with Henry, Hardy, and Dodto. So, uh, when I came on board last May, May 1st, uh, we had three districts and, and you know, we we met Senator Mford, Dave and I talked, uh, Joe Albright, who is the CEO
of Veil, who also talk about their roles in this and how they operate in this space. We talked about, you know, what do we need to do? We we need to get out the district. We need to get out and talk to districts about what fleet is and how it operates. And you can see the result of that is what's on this page.
We've gone now from three districts to 17 districts with the last two uh being Collier and Hernando in the last uh in the last month. And you say, "Well, wow. You've got some districts out there that are pretty good size like Pulp. They have 15,000 employees. Why are they doing this? They see the value in it,
too. They're getting value in it as well. Uh they're saving their employees dollars as well. And so, uh there are truly savings to be had for everybody. As this grows and gets larger, the economy scale only gets better and better. Make sense? Any questions about any of the districts
on here before I move move forward? I really we'll get through this then we'll just have open dialogue. Not much of a set talk to you. I'd rather talk with you as opposed to present. Any questions up to this point? >> So, how how many So, it's the last year that all of these three have been added.
How many how many employees was that that were added last year? Uh well of the I think we have over 44,000 among all these I think Henry Hardy Minnesota represented somewhere around 1,800 employees total among the three of is that about right about 1,800 to 2,000
employees made up those three districts. >> So this is evolving rapidly which means the pricing structure model is going to change has probably significantly changed. >> Everything has everything has changed substantially since we've grown from those three to now 17. That's great. >> And that's just since April 2025.
>> That's correct. Yeah, that's that's true. >> Well, how many how many more are um in consultations to join? >> We've got uh it depends on how you define that. I'm trying to debate the question. We have we have people that we've had people
that we're having conversations with. We have not we don't have meetings scheduled like this one. We've got folks we've met with that had these meetings that are getting ready to take the participation agreement, which I'll explain what that is, to their board in the next, you know, 30 to 60 days. We have two more districts that we'll
probably be doing from now April 1st. Uh overall 18 to 20 addition add additional districts that we're engaged with to certain degree that are somewhere along the pathway of of considering we have to add have you run those numbers if if they are have done
>> I have not and just for comparison I talked about Calhoun they are also they're doing this to PAC so at one time PAC has a self-insured program right now I believe Jackson Walton
and and Calhouner in in that one. I think there were more at one time. Some pulled out probably 25 30 years ago, but those that's the consortium that they're that this authorized. They're they've been a part of that. They're not part of fleet. However, they're they're willing
to talk and everything. Daryl Junior came over. I forgot he was the other one that came over when we all met. He came over from Calhoun just to to listen as well. >> Yep. And we've had bees from Washington and in Jackson as well. be on those meetings. So we're we're from the panhandle and then on Friday we'll be
down in Indian River County all the way down to Bureau Beach for for a meeting with their insurance and benefits. Yeah. So we're we're pretty much can state as districts provided by the table talk. Yeah. I think it's a good time to talk about difference between a consortium and a trust goes that way through. Yeah.
Go ahead. You got a lot more experience in that space than I do. really want that this was initially um going as the Fship program. Okay. And it was based on and their local agreement. Okay. Which is what the the consortium is based on, right?
>> What that does is that limits you though because what the founding county is the regional one you have to have exactly the same as they have. Okay. But with a trust you don't have to. Okay. Okay, you can all have you run your individual programs and then you just come across
the top and you cherry pick the good stuff out for you. Okay, the the stock seems a lot cheaper. Okay, the pharmaceuticals are a lot cheaper. Okay, all those kind of things they become cheaper when you buy them in bulk and that TED talks that's really good example about that as far as that goes.
So that's really you when you're looking at a trust is so much different, okay, than an interlocal agreement or consortium like that because it's very limited. With a trust, it's far more broad-based where you can really go through and use the economy of scale for you benefit.
>> So that means you can pick your own carrier network that you would like to utilize. Correct. You're not you're not bottlenecking one carrier network. So what works better for this area might not work best for South Florida. >> That's exactly right. That's that's exactly right. to your point, that's part of uh the lessons learned from from
SHIP is that not every school board is going to want to be with the same carrier, have the same plan design. Uh you you need that autonomy to be able to decide where you want to go. And currently inside of of Fleet, we do have all four of the carriers participating
with districts that are members. We have, you know, floor blue, United, Etna, Sigma, those four the big four that participate inside of Fleet Currently. And so uh you know it's still that still remains your choice. Your plan designs is still the choice. Your setting your deductible your insurance
and benefits committee in terms of you know how many plans you offer. All that still is up to the district. Now we will come in and guide and give you all thoughts and advice about hey you know if we we move this lever here how will affect overall cost? You know how will
it affect the you know the overall running of the plan? Do we need to offer two plan? I don't know how many plans you over here. Two, three, four, but uh two two plans. So, you know, we can do different things with analysis of, you know, if you tweak certain things with those plans, how it would affect the
overall cost of the employees for the district. So, you still have complete autonomy over that. And so, thank you, Dave. I was going to gloss over that and not touch on that. >> So, there's still autonomy in who we would like to pick as a pharmaceutical benefits manager regardless of the carrier network we pick with or is that
isolated >> based on you can or you you still you still maintain control over who your PDM who your pharmacy contract is with. Uh what we're finding is is we have a benchmark trust. We have a pharmacy contract that any of the district
members can can can take advantage of. And that contract is generally always cheaper than a district uh by itself or what they're currently getting. I've used Bard for example. Obviously, Boulevard is a much larger county than most of our poster like we were in North
Florida, but they were the very they came to Fleet. They were the very beginning of a three-year deal with Sigma on their pharmacy program. And we said, "Well, this district, they're they're now in fleet. uh you're either going to give us some concessions
and repric your pharmacy bid that you just settled on with with the district or the first opportunity we have to take you out to bid as fleet now operating on behalf of the district. We're going to do that. Well, they came back within the first 30 days of us being there and
said, "Okay, we'll put $1.1 million back on the table and in the district for each of the three years of the of the three-year contract beginning." So $3.3 million they saved by benchmarking their existing contract they've just gone into
next to the fleet benchmark contract for PDM. Now they chose to say with Sigma because Sigma brought their price down to meet pretty close dollar for dollar what we could offer inside Fleet. Other districts take advantage of the of the PPM we have inside of Fleet. Uh one of
our smaller districts said hey we've been with Florida Blue Prime forever. Uh that's the pharmaceut program under Florida blue self insurance program. Uh we want to stay with them because we don't want to have to give our members new cards and have employees gripe about you know having to get a new prescription card new number and all
that kind of good stuff. So we did the same thing there right we said hey this district wants to stay with you blue but if if you don't meet the price that we can that we can give them they're going to come to us. Well, they they came down and met the met the benchmark price. And
so that leverage though, that economy to scale, those districts would not have had they not been fleet member districts. And that's how you know that that's the power of fleet. Good questions. Okay. So, why fleet? Uh we we won't unpack every one of these bullets.
There's a lot of them on there. Uh we already talked about transparency. Uh transparency, let me expand on that a little bit. And I'm not going to say I I'll just be the first thing. I know very little about uh CHP because we were not in a CHP world. That's over in Swanny. So we have that traditional
agent broker relationship. But the question I would always ask as a superintendent or previous to that as a principal sitting on insurance and benefits committee is, hey, what are y'all making on us here? Could never get a straight answer to that. What do y'all make on us? Well,
you know, we get this, we get that. What is that? Well, you know, can't can't ever be straight. With fleet, you're always going to get a straight answer because we have no we have no motive outside of what cost you to be a part of the program. We'll talk about that. Our only motive is to bring savings to a
district. That's unlike anything you're going to find in the private uh for-profit empty space control. We've already talked about that. You may gain all the control. We uh we say districts, you're not you're not uh losing any control. you're actually gaining additional control because now you're a
part of a large group. Accountability, uh, we're accountable, you know, to the board. Uh, me, I'm accountable to the board and we work actually for the member districts that are in fleet. And I'll explain what that structure looks like here in just a second. Uh,
financial stability, year-to-year volatility. We know that smaller groups, we experienced, uh, even being 800 boys of Swany, we experienced it. uh we're still small. When you get several bad claims that hit your program, it impacts
the health of your program in a big big way. And I like to fish. You know, we've talked about fishing before. I like to fish. And uh I say, you know, if you throw a brick into a pond the size of this room, the ripples, the volatility, the ripples that you have in a pond this
size would be a lot bigger than if you go out here to a lake 100 acres and you throw that same brick in. Yeah. Get any ripple at all. volatilities to smooth out because you're a part of a larger body of water, a large larger group. U health plan rehabilitation,
uh we have some districts come to us and they're in bad bad way. They're upside down. Uh they got they got more cost. They got more cost and they got money to uh pay pay for their claims. And so we work with districts to try to get back on track uh through recapitalizing their plans, making some plan design changes a
lot of times, recommending those things to you all for consideration. I'm not suggesting that's what we know are. I'm just saying there are districts that we have uh that that come to us that are in in bad bad shape. Uh 112 compliance verification. One of the things that has
been a a a thorn in the side small districts when you're in a self-insured environment is the additional workload that happens at the district level with managing all the nuts and bolts and components of now doing it all yourself as opposed to paying a carrier to do it
all for you. They're right there. Okay, they're right there. They're right. >> That's what fleet now makes possible for districts like like us. I'll say like us is that all the operational components of the accounting, the paying of the
bills, the uh the 112 uh filing that has to be done each year to the state on your health of your overall program and that you got your 60-day reserve there. All that happens at the fleet level for districts. So you don't have to add staff or add workload. Uh and it's it's
a different way of doing business. It's a different way of doing business. And if you're not familiar with being self-insured, when we went self-insured in Swani in 2020, I had had two full-time people in the finance department to learn it and to manage it on the dayto-day. Uh you don't have to
do that with Fleet. Uh Fleet does all that internally for you. And I'll talk to you about who does that for us here in just a minute. uh dividend uh sharing, original risk sharing. Uh this idea is it's not an idea, it's actually getting ready to launch at the end of quarter two. It's
the idea that you have small districts that come together, you have districts come together in life-size bands to basically own and operate your own self-insured stop loss pool. So the traditional traditional space, a district like yours
would go out into the commercial stop-loss market and you would purchase a policy to ensure your risk. Make sense? So that if you have a lot of bad claims, I'm just going to use easy numbers. Let's say you got a million
dollars in revenue, but you had $1.1 million in claims. Well, you're upside down on about $100,000, right? Because you had a high cost claimant that cost $500,000 that year, one person. And and it happens, right? We have people that had bad things happen to them. Well,
traditionally, you would purchase a stop-loss policy and you would set a deductible on that just like on your car insurance or your homeowners policy, right? You set a deductible. Let's say your attachment point in your stop-loss policy is $200,000. Well, that stop-loss carrier
then picks up everything over that $200,000. So you would have been off the hook for the other 300,000 because you bought insurance to ensure your plan. In the fleet world, risk sharing means we have multiple districts coming together pooling and not paying a
carrier but pulling that risk together to own your own stop-loss pool. Make sense? Everybody pays into that pool. And when the group when the pool is doing well, you get part of your
money back. It would be like you going to your auto insurer and saying, "Hey, I've had an accident five years, but I paid you $2,000 last year to insure my car, my in
my truck. I want I want 25% of that back." We're not going to do it, right? Well, neither does the stop-loss market. When you pay that stop loss premium, if you have a good year and you don't need it, they don't give you your money back. With this program of risk sharing inside
of Fleet that'll launch the end of quarter two for all five districts, you'll have a dividend program that will refund your money back when everybody's doing well. And if you don't do well and you have a bad year, you may not get a dividend back, but your cost for being
uh your cost of stop loss for that will be less than what it would be on the commercial market because it's not a for-profit stop-loss structure. >> Does sleep have its own stop loss? It's just at a really really high high limit. that if all the groups collect over a
benchmark then there's a commercial layer that goes on top of that that the layer itself the pool active is is got a a but to your point that is so inexpensive when you're attached to such a high level >> the probability is so high that it will
be lower >> exactly that's exactly right this comparison is very good >> yeah there's a real good comparison with that on on this bill on the property cash side I can give you example, they they've been a trust for 45 years now.
Uh and they have laid back millions of dollars. So when they get got hit with hurricanes repeatedly, okay, we were able to give the districts back millions of dollars, okay, because it was their money, okay, it's that self insurance later, okay, that you develop over time
that you'll get back and you can take it as dividends like Ted was saying, you can take it as a dividend at the end of the year or you can lay it back and say, "Okay, uh, we're going to take this dividend. We're going to keep it there, okay?" And let it build and build and build to where we have a really bad year. Okay? Then we got something we can
build. we can we can draw down on as far as that goes. Y uh that feeds right into stop loss premium reduction and stabilization that kind of explains how that happens and then red reduce district procurement operational cost. Uh quite quite frankly
um anytime as a super I would say to my finance folks, hey let's let's go out for an RFP. Let's go out and bid on something. Oh gosh, you know all the headache and you know all the stuff that goes along with all that. When you join Fleet, a district is able to hand everything health insurance related over
to Fleet and we can legally run those procurements for you. We can run the ITN for you all to consider. Are we going with United? Are we going with Signal? Are we going with Blue? Are we going? We run all that. None of your staff has to do that work. We're not getting
compensated anymore for that or we don't get paid. That's a part of the membership of being in food. Yes. >> Okay. So, you take over here. Um, how many protests have you I mean, you guys go out.
You go out for I guess there's 17 districts. Do you go out for 17 districts or you go out for individual districts? How does >> it depends on where it depends on where everybody is in terms of the renewal? So I'll give you an example. >> We have a we have seven of the districts
they have all all have a one renewal they plan their starts January 1st each year. So, we bundle a stoploss uh we bundle a stoploss um bid, if you will, together with the carriers to say,
"Okay, when we got 15, 16, 17 carriers that been on stop loss inside the fleet. >> Hey carriers, we're going to bring you seven groups all at one time. Put your best foot forward >> for for these seven groups."
>> And who negotiate? You go do an INA. So who negotiates those contracts? >> Fleet gun does screw available for our program management team. >> Okay. >> So you outsource that? >> We do it. We do it. We do. We don't outsource that. >> Okay. And and who who defends it should
you get a protest? Have you had a protest? >> Okay. Good. So you have lawyers has or Okay. >> So that would not put our lawyers in the mix of >> It does not. >> Or do we partner? But your your board
attorney would be advised of what's going on, but you're you don't have you you don't have the exposure or liability for the actions of of a fleet. Everything that we do is going to be with inside of a legal context within legal lease that we have to operate in as a trust under Florida stat.
>> Okay. So, so question is it, you know, I guess you will continue to try to build, you know, this this leap up. Um, and if it's kind of like it's it's evolving, it's going to just get bigger bigger bigger bigger bigger. Um,
I'm hoping is what I'm hearing and I think Mason brought this up earlier is that when you, you know, if you were to add three more counties on to this, you know, we buy into this, then we could get a better rate. Does, I mean, is that what you're
>> You're already going to be better off than you would have been even before. >> Right. Right. >> And I mean, it takes a lot of liability off it. I mean, and I'm I'm just throwing this out there. takes a lot of it sounds like to me it takes a lot of work off the staff if you handle that. It also takes I mean protests are not
funny. I mean they're not they're not fun at all. Um and and you spend a lot of money. So you know someone else takes that within it, you know. So okay. >> So you said well how does the district not lose control if that's the case? I
give the example. uh we would we would rank order after all the analysis and responses come in. We would rank order for you all and fleet recommendation that you do this based on the responses and the evaluation will guide you.
>> If you choose to say you know what we appreciate that you recommended blue but we we would prefer to be with United still have the ability to inform us of your desire to do that and for us to make that happen. >> Yeah. So the evaluation I mean who who evaluates so I guess
>> our our teams our team I'll talk about all those bits and pieces >> but and we would still have buy in know you would contact us and ask >> we're not going to make any decisions for the district right yes that's correct you got you got 17 17 counties
that district >> the mayor the mayor this gets yes we want to get the money bucket. Everybody does. But as they grow, say you get the that we're number 18, number
18, but when number 25 comes on board, how do you distinguish what the difference is going to be of how things are everybody? You say some are one or they'll be different time. So how do you structure if you're going to do that? How you going to structure all 25 buying groups if you have that many at that
time on a single schedule? Yeah, you're you're not able to do that on a single schedule, but what you are able to say to the PDM, for example, say, "Hey, we've got 25 districts. Uh, Liberty is going to come up for a PDM contract in October. We've got uh we've got uh we've
got Calhoun that's going to come up in in February. And now we got X number of people in this entire group. We need a pharmacy benefit cost on the entire group size. Whether they choose to pay
it or not is going to be up to them. But we want you to price us as as a trust. And to your point on size, this is Fleet Now is the largest largest group large entity in Florida.
uh above that of Miami date. Miami date has 29,000. So we have more buying power now as fleet than Miami date. And so the buying power piece is real. Um and the savings the savings I'll talk about more specifically are there.
Trust me, I wouldn't have brought I wouldn't have fled Swany County down the they they'd send people after me if it did if it didn't work. Right. U but and I thought we had the best run plan this course. I was there. We build it. Right. But uh I said it tongue and cheek, but I was showing very quickly that you know
even though I thought we had a great plan, man, we we were leaving huge dollars on the table until I said show the new superintendent, hey, this is what we got going on. It's like there there's big savings. There really is. >> Would would we still contribute? I mean, I know like the board does the the
boards at least 17. Do they still contribute to the >> sub? Yeah. Yes. >> Okay. So that didn't go none of that. >> Did you see any increasing or did you see any? >> Some boards already we're looking at
increasing their board contribution because they had not done it in five, seven years. >> We just did that. So yeah, >> others have not. >> That's completely still. >> So it's not forced your your boards to come in and increase that. No, >> you got to make that decision. Really, what happens here is we try to save you
money and will save you money. Okay? What you do with that money is up to you. Okay. How do you how do you how you spend that money for safety? It's up to you. >> It'll employ money, >> right? >> We'll pretty probably we'll probably keep doing just what we're doing and let
the difference show by the customer, the actual customers. >> I know like for Daryl and I talk all the time. In fact, he and I are texting right there. Okay. Um >> for a few years, they didn't have any increase in premium. they were able to
use some of the savings for that. They they're, you know, again, everything size and scale. They're they're looking about $3 million in the bank. That goes away really fast when, you know, obviously you start doing the math and that won't last long. But at some point, he says, you know, as pre as insurance
costs go up, we've got to we've got to somewhat go with that a little bit. Otherwise, you know, we're we're still down here with what we're paying, but the costs are way up here. So that he I think in the last year or two they've made but they were able to do a few
years where they were flat. No, there was no increases. >> Yeah. >> And is is with fleet is it is our insurance going to go up just like all other insuranceances every year? So you're going to have an increase every year. You're going to have your claims
and being with CHP we're not if you came to fleet I'm here's what you know about me. I'm going to tell you to do the bad ugly. We probably aren't going to be able to get the data. They won't they won't be able to claim that before we're not get to be able to really be
able to inform where it is you need to be. And so it's it's going to be very interesting and there are ways to be able to look at that to try to come up with a recommendation to the board and say, "Hey, this is how much total you're going to have to have in the bank, you know, as a function of to your point, board contributions plus employee
contributions equal X." Isn't that enough to fun the pot? >> You mean layer one, correct? You know, I mean, from where we're at, one to where from there on out, we're going to know everything, >> everything, >> right? >> Coming in day one, >> yeah, you just not going to know it.
>> And when we if you know, if later on down the road, because I try to look, you know, way out. >> So, because a lot of these companies will tell you, oh, we'll give you claims data, we'll give you this, we'll give you that, and then we can't get it. >> So, is that part of the contract that everything at the end belongs to us? If
it to your point. >> And what's the term of your contracts? I mean, are are you doing >> Everything gets repriced every year. >> Oh, okay. >> Everything gets everything gets repriced every year. >> So So I I want to make one quick statement. When we were with Ed and United Healthcare, they would give us
claims data. With CHD, we're doing community pricing. We're in with the other people that they represent. So that's why they didn't they would adjust our increase and some of the others they you know it was based on the group >> even though you thought well this is a
larger group >> but I I pin one of them now one time and negotiate said look I understand y'all got to make money did y'all make any money last year and you know did we have a good year and they went we made money okay good you're supposed to you're
supposed to but that let me know that the the premiums they took in were more than the cost that they they did out. However, that might not have been the case in Lehi County. It might have been just the opposite. And so, yet still ours still went up 8%. >> So, this collective savings that we
would be obtaining to to Boo's point, >> we could see a benefit annually at renewal based on the volume that fully passed. We're not going to see. So, if you if we if we said, hey, you know what, January one or whatever date,
we're in a turnover, right? there's a set number of people we're we're locked into savings until our next renewal regardless of the size of fleet like the the number of insured fleet correct we're not going to see savings within that time period as it grows will we you
will see you're going to see an initial savings moving from what is in essence a fully insured platform and we'll talk about that a little bit I got a little slide back there will show you that that graph there's generally a 7 to 12% % savings when you move from a fully insured program into a self-insured
program because to your point there is go always going to be built in a guaranteed profit for whoever's administering the program. So you know whether you're with CHP whether you're independently uh fully insured with Florida Blue they're going to build in a
profit margin of somewhere around 7 and a half%. Plus they're going to be building in profit on what they make on your pharmacy program. They're going to be dealing in profit on their own reinsurance cost because even on a fully insured plan, you have a stop-loss policy. It's called reinsurance and that
in that layer, right? They're going to make money on that that you're pulling out when you come into a fleet type program. You're not paying that car to profit anymore. You're also not paying a state premium tax on a fully insured program that you don't have to pay when
you're self-insured. So, there is that resetting of the bar year one. Uh, and here's where some folks get kind of kind of mixed up and well, you said you were going to be able to do this, but you didn't. Well, your fully insured renewal was going to be was going to be a 15%
rate increase. Well, your renewal come to fleet was a 4% increase. You still saved 11%. Right? >> Even though you got an increase, >> even though you got an increase, you still saved 11%. So, but within the year. So, in other words, are we locked
into a contract in this guaranteed set price point annually or as this grows even within that contract period, are we going to see savings as it grows? >> Your stop loss and your PBM will be a set contract for the duration of the term. Generally, your stop loss is going
to be. That's correct. >> Your your traditional PBM try to get you into a two or three year deal. We're going to buy some. We're going to build out contract struggles in the PBM that allow you out if there's a better deal to come because we know when you turn on the TV and you're watching the football
game, you're going to also see 15 commercials before they come back on and go live again, right? They're all drug commercials. Drug market changes all the time. So, we are going to be repricing their stop loss, repricing their pharmacy every single year. That's just not something as a school district you
can go out and do independent. You can you don't have the workload the people inside your to go out there and do that work every year on your own and so that becomes a part of the way work inside fleet with people do >> the rebates for the pharmaceutical benefit. So we see those directly or
they go pulled into >> they do not come back. >> Did that answer your question? >> Yeah. And we we keep talking about size just so and talk about the state. Um the state has 168,000 employees now.
They've contributing a ton of money to their to their state. You're never going to get that. But the reality is there's 272,000 schoolboard employees on insurance loans in the state. So if we got everybody in
the state, we would be far bigger than the state. You talk about leveraging companies at that point when you have 272 if you had 272,000 employees you'll be the fifth largest group in the United States. I think that
is your question. If that happens everything should be better for us. >> Everything better not >> Miami date Orange Hillsboro all the big boys. Okay.
>> It should get better for everybody kind of like >> since I've come on the school board. I because I've retired from the state. It it's like I I never understood it, you know, and Kyle and I have had long conversations about this. I've had long
conversations with our legislators about this, you know, but >> I would love to see that day because it's just an eye to me. I know we talked about FRS and why, you know, we're contributing, but it's you got us in FRS. You treat us like government
employees, but then on the other hand, oh well, we can't do insurance, right? >> You know, because it would cost the district, >> go broke. >> Yeah, we would go broke. But it it just it's not it's not pulling out. It never has in my brain. >> No, I I get And to your point on that
state when I was in the DOE for those six months a long months u I almost said something I should first thing I asked are you all sure you know what you're doing me up
$22,000 and change per employee what the state pushes into the individual plan for their employees when school districts are four, five, six, seven, 8,000 depending on the district. >> Right. >> You're a fraction of that and there's no
way you can compete because the rest of that cost share has got to go to the employer. Right. >> Right. >> But to your point, the larger this gets, the more leverage we're going to have. And this is what's exciting is because of the size that we already are. We're talking with one of the one of the
jumbos uh right now that you think we you know if you're a Hillsboro orange Miami Dade uh you know do all you want the big big districts that you're getting the best yet. We're actually showing them right now that hey there's there's probably six to 10% savings on
just your pharmacy spend alone. That doesn't sound like a lot but they spend a hundred billion dollars a year 100 million a year on just a pharmacy in that district. So if you save 10% that's $10 million, right? Not it's a drop, but
that's still big money. So anyway, yes, the magic all of this and what Dave said as well is that as this continues to grow, it's only going to get better and better. Um for y'all feel free to sit down if you want. It's just
>> take a break. >> Yeah. Okay. Don't feel like you have to stay in them. >> I appreciate that. I uh I actually I he frustrated when I >> get very informal in here. >> I should maybe in my next life I'll be a preacher. You know preach right.
>> You're right. You're right. You're right. >> Have y'all had anybody come into this been part of and live? >> Not yet. And I'm glad you brought that. Yes. >> I'm I'm glad I'm glad you brought that up. And what we said is uh we're not
we're not going to have none of our districts sign anything and say hey you got to stay with us for x amount x x amount of time. The only thing you'd be required to do is stay for the duration of the year that you're currently in membership. >> Does that make sense? So if you're playing your you're planning here runs when?
>> October to September. >> October to September. So, if you came in active, let's say October the 1st of 2026, and you get uh you get into the into the spring of the next year, say May, April, May, you say, "Hey, you know what? We're going to we're going to leave. We're going to go back. We're
going to do something else." >> September 30 is your last day you leave. >> There's still a claim payout. That's why that's why you got to stay. That's why you got to stay through the end of your term. You're going to have to continue to fund your account and pay your claims. But even after the term
ends, claims still roll through and you still have >> you're going to have that reserve and then you're that reserve is going to pay out those claims that 60 reserve is going to be there to pay those claims out. >> Yeah. >> And then whatever's left and come back in your you know you get your money sent back to your district as a refund pay.
>> Miss Katie and Kyle on the finance team, this seems if we make this move, it'd be an opportune time to adjust the effective date of enrollment for insurance. Is October a good time? Like October one or no? Is that a good time for workload and capacity?
>> Okay. >> And it wasn't always October. We switched that. I think we used to do that since 2007. No, prior it was an off. >> Okay.
>> I know I know there's been a lot of conversation your point about that over the years, you know, districts want to line their plan year up with calendar year deductible January 1 through December 30. But it works different every district and every finance department has got a different slam on
what works for them. And so >> I want to ask Katie what malt July one be going on. >> Um all right here who's eligible to join? We won't belver that point. Uh everybody that
wants to join that's a member of FADS. All 67 are eligible. You've got to be willing to uh you got to be selfinsured or be willing to become selfinsured uh to become active in fleeting. And then uh you know boards like you all y'all are asking great questions or interest
always looking for another solution a better solution. We want to work with districts that want to try to continue to be a part of making things better and better not only then individually but collectively for all member districts and we'll talk about what that looks like. So how does a board participate?
board prot uh the board would act on a recommendation on a one-page participation agreement that would come before the board saying hey we're taking action tonight to uh well this morning whatever it might be to join fleet uh the superintendent sign
the board chair signs it comes back to us and that time we talk about if you're fully insured we talk about to get you to a self-insured u environment in time for your new plan year. That's that transition plan piece
there that is referred to on number three that you may or may not meet. The district formally enters fleet when you as a district say you want to enter fleet. But that point has to be at the point that you become self-insured. So if your plan year you go self-insured
October 1, 2026, that would be the earliest date that you can become active inside a fleet would be October 1st of 2026. doesn't mean we wouldn't start working with you and your team to prepare for that launch date and start
shopping things like running ITNs for a carrier uh uh shopping pharmacy benefits shopping stoploss and all those things all that would be working in be behind the scenes getting ready for October alone >> I have a question
this is a little confusing me so you do let's say you had three you have three counties divid 910. Negotiate every year, right? >> Repric >> repric. Did you just tap on those new
additional counties at the end of the year and get a better price or did you go back out for an ICN again >> every time you get a county? >> No. >> Okay. Sorry, Must want to go out for an IN. They may not
want a new broker. they may not want us to go shopping for a new uh ASO, a new carrier, a new blue or United. So, we would be running ITNs in that scenario for districts that want that and need that. We do, but we're going to repric you anyway at the end of each year. So,
if you were with I'll give you an example. But here you do it with United uh in Florida. We're going to take all the claims that you experienced from the previous year and we're going to run them through the Florida blue filter, the Etna filter, the Sigma filter and
say, "Hey, you know what? You might want to consider this of the claims you had last year. Had you been with United, based on those claims, you'd have saved $250,000 or the reverse had you been, you know, had you been with Sigma or whoever might have been?" And so that repricing
function will take place and once you learn those things for the board then you can say hey you know what that repricing shows that there are savings over here to be had run an ITN let's get see if they'll respond to us right as a district and then you can engage them as an ASO administrative services only as a
self-insured district >> still I I can't see the buying power if we're just going out on an ITM by ourselves though >> on the on the ASO they're not as much buying power. Again, telling you straight up front, there's not as much buying power
on the ASO side. Uh except for the fact that they know we're bringing other carriers to the table. >> Okay, that's in a lot of a lot of situations. I'll give you I'll tell you this. >> In Swany when we were running a RFP for carrier, we did we had two two show up.
United showed up and blue show showed up. Nobody else showed up. If we're in Fleet, if we were in Fleet at that time and we and Fleet ran in ITN as Fleet, you're getting Florida Blue, United,
Sigma, and Etna all to participate because they're trying to get and gaining market share in in these regions. And so you get more attention when you're fleet in the ASO. Does that make sense? >> Yeah. >> Great, great question because I was not thinking what you're saying. So here,
this this lures me to this next. So, so when we do an IPN is it um I'll give an example. We've been doing those every three years. The last CHP was only one last year. We can't get we couldn't even get people that now in the past we've
had an agent of record who went out and solicited th those those uh numbers or or those companies. But this year we just did a 19 or three years ago I guess four years ago. Anyway, CH was on and we were already with them. So was like >> right
>> you know >> but people were pleased with CHP so they a little bit more palatable for that but um >> you're saying through doing it through fleet that they they will respond to that >> even even for small Liberty County with less than 200 employees. Yeah, that's
that's you see, >> right? I said I saw where you're going. That's my I think that's my fear is they look at us and say, >> you know, you got less than 200 employees and and how many is on the insurance? 90. >> Have 88 employees and they're retirees. So,
>> that I mean I rather if in my brain I'm call it piggy bank. I know that's a bad name, but I was thinking y'all was just gonna take us slide our little group into this pig, you know. But like you're saying when they see they want to the the insurance companies wants to be a
part of this because they know it's grow well it's we've moved to 17 or you guys have moved to 17 counties so it's it's and you're trying to go out and get more. Um yeah this was that was very >> Yeah. You're also going to want to and
you had you have just a hair over 200 employees, right? >> 199. >> 199. Okay. Have you seen slight decrease in participation over the years or is it stayed about about >> I remember we had 114.
>> Okay. So I I we've had um and again it depends on your group. You know, I I've seen when we had an agent who got out there and pushed it, he realized he'd make more money if he could get more people. And we had well over I think at one time we had 65 70% participation.
>> Okay. >> Um and it was up from 30 because he his his idea was you've got a lot of young staff, you can build this group and it'll keep going keep it. We had about two or three years we didn't have any rate increases from Etna. He we come out of United Healthcare went with Etna and
did that. But he had to build a group which means he made more money to get out there and promote it. But it also meant more for us from a board contribution. You know, obviously if everybody in the school district we had to make board contributions to, we would have a >> we'd have a problem on our hands. You
know, you kind of >> you play that a little bit knowing that everybody not because other people have spouses and all that kind of stuff. So I I don't know that it's I don't know that it's fell off, but I know that there's a lot of folks that are married to people who have, you know, top 11 jobs.
>> Exactly. >> So if you'll remember when I came here, I think I you you was Daryl Taylor, I think, right? And and superintendent we met there in the office. >> Okay. You were there. Okay. >> Uh the reason it's been as long as it
has been to your point about, you know, you and I stayed in contact, >> right? Right. I wasn't sure to your point that we could get anybody to the table because it's small group. U we have people now. We have we have
car we have a way to make this work for you. All if you choose to go down this road we are not going to have the data that we normally have from a district that has already been selfinsured has got and you know they're going to hold GHP's going to break. hold all the data post and we'll talk about what that
looks like differently inside fleet you all come is there a solution for this to work here yes there is a solution for the for this issue I couldn't have said that even two months ago or even maybe a month ago but we had been working
because we you all are not alone I mean you've got the union counties of the world too we've got the Lefayets that you know two two schools I mean there been a lot of small groups so is there a carrier out there that would be interested in taking on and building out a solution for multiple
small school districts like this one. Yes, there is. And that's why we've waited to come to speak to you all and so now I can stand before you can say hey we can we can find a way to make this work for you. >> We also have and this is just for your information you may have already made
already told you you go across the river and you've got Blue Cross Blue Shield. You go over to Tallahassee and it's CHP now. It's getting better. People are taking Blue Cross Blue Shield, but it it literally it's like we're a split world
in that county in that river, you know. >> I don't know why. So, >> I can tell you because I read this, but FSBA has 30 employees. When I went there, they only had CHP. That was it. And I said, I can't have that. I got to have choice. Okay. So I can tell you
right now FSBA offers two plans, okay? And they're in the heart of Tallahassee. CHP, Blue Cross, and >> Virginia. >> Okay. So when people tell you you absolutely have to have CHP if you're in Tallahassee or you're in this group, you don't. They're all there. United's there. Okay. Lacrosse is there. I don't
know if that is there. >> It's it's a what it what it ends up being is your provider. You basically you you have doctors that you want to go to, okay? and and if they don't have that insurance and tile has it >> then that that's the disruption factor though don't you generally run a
disruption factor okay and let's say that um you're with CHP okay and they want to stay with CHP and but you want to look at Blue Cross and Blue Shield what you do is you contact Blue Cross and Blue Shield and say we want these doctors too okay so it's Blue Cross's
job then to go out and recruit those doctors to get into that field because and that that's that's how they saw what's called the disruption factor for you, >> right? >> Okay. So, part of that is on the carrier, you can leverage the carriers to say, "Okay, if you want this group,
okay, then you have to go after these doctors." >> And doctors are there to make money. They're good. They're there to help you. They think the hypocrat, >> they got to make money, too. Okay? And we went through that my foreign district because we would been foil blue for more than 40 years. and we ended up going
United and it was a disruption factor of about 3%. Doesn't sound like much, but if you're one of those employees that all of a sudden couldn't go to the doctor anymore and network, that's a big deal. >> That's a big deal. >> Yeah. >> And so the task for United when we
awarded United and Swanie was your task is get those other 3% taken care of, get to the doctor, sign up and they did. They they want they want to they want to earn your business but they want to keep your business too and they start out and they're making people mad. That's not a good way to start out.
>> So if if I'm understanding correctly though with these carriers, we're not necessarily with the carriers. We're going to have a third party administrator administering the claims. We're just using the network of those carriers cost. >> That's correct. as long as they're okay with that and accept that, which if you
have 44,000 people that are going to be insured, you probably say, "Hey, I don't I don't know exactly how it's structured, but if it's like, hey, if you're going to sit at the table for 44,000, you need to represent this 200 as well." I'm assuming is the >> And that's the goal. The goal really is
to large numbers against some of these carriers that I'm against. I fought blue cross and blue shield house and citrus kind of good health insurance for them. Okay, it's risk manager there. I can tell you that um
when I went to FSB and I learned how when you the push you can have when you have $9 billion worth of property you're insuring and you go out to market let me tell you they want your business. So when we have 44,000 okay if we keep growing I I think we'll have 100,000 by
the end of the year. question. >> 44,000 school district employees. Just asking is is that how many is is covered by the insurance, not just employees? We have how many employees?
>> That's insured. >> That's insured. Okay. >> Insured employees. Okay. >> Actual members. >> All right. Yes. Keep saying you got big. >> We're going to have a lot of just from
we've had from the little thank they love CHP here. Is this something that fleet will be doing also to try and get CHP to look at or I mean I'm just asking a question and it's going to come up here.
>> That's all we talking about. >> There have been there have been efforts uh to see if there was the interest uh and and CHP working a sandbox with fleet that is it
safe to say is not there. >> And so it really it comes down it and They're really They're really tight when they're down. You talk about >> tell you anything. >> I took them from Tupelo Honey. I said, "Come on now." Yeah. >> Come on.
But if you think Do you think if Rocky switched if if Leon switched over they that get their attention? >> It would, but they won't. >> We go. We go man. >> I assume we're not being recorded then.
They thought we are. Oh god. Well, I mean, I just know that that the hub is Leon County for Cincinnat, >> but yeah, they're their their hub, CHB's hub is the state, not not Leo County. And I'm sure if you got right down to
it, you know, they got the state of Florida, >> right? That's what I'm saying. That's their that's their bread. >> The bread and butter, correct? you know, and so >> it does come down to, >> you know, this this, like you said, as it grows, it may start raising some, you know, because if we got to what the
numbers you said earlier, >> that would that should definitely get their attention. Um, but >> it may not be this year, maybe two years. Exactly. >> And to be completely transparent with you guys because that's the only way we can be, right? Is
it may not work. It may not it may not be such that uh let me back up. You're going to have to make a choice as a board. Do we stay with CHP or do we go off in a different
direction? That's always >> Do other states have a model like this? I mean, do we just pull this out of the rabbit's hat for the state of Florida? >> We were in Hillsboro and sit across the table. One came from California and one came from Been doing forget other
states. They've been in other states for years. >> That's what I'm saying. This they're models like this other states. >> There are poor property and cash because I used to go to a conference at least once a year >> for multiple states. Okay. Texas has the
biggest one. I can tell you >> Texas is in Texas is in the state. Okay. How they run theirs for the health insurance for school employees. They're in the states. I don't know. >> They're in with the state of Florida. They're in with the state. >> It's the same program, the 30. As far as
that goes, um I know it's a good program. I'll just be honest with you. From what I've seen, they have a lot of difficulty in that program because it's ran differently. I'll just say they have some issues. They have some issues in that program. Um but there are other
states that do this, okay? and successfully because when we were talking to Hillsboro County, they said when we came here, we thought we had something like this too. Okay. But they were still fully insured at that. Imagine Hillsboro fully insured. They just went selfinsured this year, which
is the craziest thing I had heard in all of our conversations. >> Yep. I agree with we still have a very I mean if we if we need to shift, which if we deal with this, we'll have to shift from CHB to either Florida Blue or United Healthcare probably somebody like that. and they still have a massive
network. I mean there might be the the disruption of a few percent which is big when it's affecting you personally especially if you have heart issues or or whatever something that's serious health issues I understand that but uh there's still the networks that are
available to us are really are very robust okay >> carrier networks well I live I live in Taylor County and uh I could choose to because I was a physically employee right SBA excuse me I could choose between CHP or move crossing machine.
Okay. Same the networks. I can tell you the networks were identical. >> Almost identical. >> Okay. Because Florida Blue actually owns 51% of CHP >> if we do go on this. >> There you go.
>> I read somewhere that our superintendent will be on the board. >> Correct. That's bullet right here. That's all right. That's a good point. Fine. That's good. That's good. Uh the board acts participation agreement, transition plan, set a date to
interfleet. Each superintendent is is a member or a trustee. No fleet superintendent can do it themselves or he can pass it on to a CFO or assistant super whoever. >> He can't delegate though. >> He can't delegate that. No, he can't delegate. Yes. Some some people said, "No, I'm going to do it." And some
people said, "No, I'm going to delegate." It's up to you. It's up to the district. >> Okay. >> Every district that's a member gets obviously one vote, right? So what happened to the participation agreement is it would come back to the fleet board
for application into fleet. So I would carry your participation agreement forward and put it in front of the 17 superintendents or their designs say hey I recommend same same works the same way like superintendent write a fleet I recommend board chair that we accept
Liberty County's application to become a member of fleet or motion and then the group votes and they let everybody you know they let you in uh and so I work for the board I work for the trustees the member superintendent um superintendent member
district and for Senator Mockford uh that is sponsoring obviously FAB is the entity that's sponsoring the tweet. So that's who I work for for the districts and Senate. Okay, good question. Uh let's see here. What can a district
expect? Kind of touched on that earlier. If you're moving from a fully insured plan to a self-insured plan, generally 7 to 12%. We've seen that um pretty much standard across the board in some cases that it tends to be a little bit more. >> Now that that is based on
a calculation of the data says X%'s going to be saved. But if we have good land years, we would save more than that. Add to reserves and that good land. >> That's exactly right. That's exactly right. Yeah. And to your point on that, if you're if you are, let's say you were
already self-insured, had been self-insured for the last five years, pick another what we can say and demonstrate now because so many districts have been members of the old Fship program going back to 2009, is that if you were independently
self-insured compared to being self-insured inside a fleet, you'd save 7 to 13% over being independently self-insured by being able to tap the stop loss of PBM savings on buying copies and so there's savings either direction but you do get that savings
coming in going from fully insured to selfinsure uh year one so what can the district expect I'll try to wrap this up pretty quick uh education on the value of actively managing the self insurance program again uh understanding the nuts and bolts of it you're not having to
manage it because that's what's happening at fleet but you do need to understand how it operates since you've been in that space before you may already understand uh data analysis and application. When you become a member of fleet, every bit of data no longer belongs to a carrier.
It belongs to the district. As a self-insured district, your pharmacy data, your stop-loss claims, your medical claims. Every nut and bolt that happens inside impacts your program, that data belongs to the district and
lives inside the data warehouse that is owned by member fleet districts. And you can get access to it at any time you want without going through a broker or having it come filtered through an agent or a carrier. It comes, hey, here's what it is. How do you want to react to it?
How do you want to plan for it based on what the data is telling you? And that's an important part of uh continuing to squeeze out savings year over years, having uh access to your own data in a clear and uh authentic way. uh wellness
support. We can talk a little bit more about that in terms of what wellness programs look like. Um we all know that, you know, you get people in that ignore their health, right? Their long-term outcomes probably would be great. If I hadn't gone on blood pressure medicine
and cholesterol medicine 20 years ago, I probably would be a higher risk for heart attack and stroke, even though I probably already still am, but I'm a lesser one. Right? That's the idea. If you get compet people engaged in their in their health and and their uh being compliant with their prescription drug
and all that kind of stuff helps your program overall. This is the slide right here that I was referring to. There's just a quick uh visual if you will of what happens. The red line representing that fully insured program, fully insured program. that self-insured line
representing that uh that uh uh that that self-insured line where you drop 7 to 12% that first year uh by coming in fleet tapping in to what will be some of the immediate buying power. Uh we're seeing that across the board in a lot of
arenas, but again stop loss in the PBM or the two million areas, you can expect to see some savings right out the gate. And then by u pulling people together in that, but I'll say the risk sharing piece, that risk sharing bank we talked about earlier where you put together
that self-insured pool of of districts together. That's the green lines. We already have data that has been run uh analytically to show that by bringing people together, you're not going to superintendent's point and Daryl Taylor's point, Calhoun, nobody should
stand up here ever, whether chemically or not, and say we're going to make that green line go down over time, it's going to trend, but does it trend upward at a slower rate or does it trend upward at a higher rate? And this green line is the program strategy goal for fleet is to is
to minimize the rate at which you see those increases. You have medical inflation things more 17% 45%. >> Exactly. Exactly. >> Inflation is going to happen. So looking at the past that what what
that that flattening of that line for us and for y'all as a board for our budgeting purpose and for Katie is trying to figure out how much does the board want to contribute or how how do we how do we break this to our our our employees is that one year let's just say they say you know we're going to do
a 3% increase or and for years that was a 0% increase in in premium well that was wonderful that was you I mean you talk about planning that that was wonderful You know, whatever we did last year, we probably can do this year. Then all of a sudden, you know, it's it's
like throwing dice. Oh, it's 13%. No, it's a 16%. Some districts 20 20 plus. I mean, how do you how do you plan for that? You know, you have very little time, especially for an October renewal. And so, uh, we've we've had a group
that's, you know, that's helped us, uh, with Hub that we contracted with three or four years ago to try to help us with that. But even even at our rates has been like what six and 7%. 8%. I mean, you figure 8% over four
years, you know, I think 8%. There was one time they said, well, so and so's paying 18%. We were at eight. I thank you, Jesus. But then you do you do four years at 8% now there's 25 30%. Well has people been able to get a 25 or 30%
raise in their salary to accommodate you know their their contribution towards. So that's where it's a it's a you don't see it but it's it's doing this and it's it's jugging our folks. So what we're trying to do is get the line lower possibly through something like this.
So, you know, when we do have when we do have those good years, and I would say Katie, Lisa, uh, y'all, we we have a younger group now. We really have a younger group. Believe it or not, I'm the I'm I'm I'm the veteran. I'm getting retired. Uh, and I'm old. When did you
start taking blood pressure? But, but I'm saying that I we do have a younger group. We got a bunch of 30 I'd say 20, 30, 40 year old teachers, staff, employees that are very healthy. So this might be a golden opportunity to do
that. I I know in Lefayet County, Robbie Robbie has I think a lot of older a lot of older employees, a lot of older teachers and stuff because when you start looking at their average salary for teachers down there, it's really high. But it's based on a bunch of them who have been there and the longevity of
those employees to this might be a deep and again I this will be a board decision and we still got a lot of other things to talk about. This may be a real golden time to make that and to be able to to bank some money and and start getting these costs under control. I don't see them getting any better with
going the way we got now. We do have to we got a couple all the you know we did a survey boo was talking about survey that we had that went out. People like CHP they love the $15 co-pays. They love having their do doctors. They love the network I guess was what Jody was saying. They love the network of doctors
that they have access to. Um, but about 80% of them said, "But I'm willing to I wish it was cheaper." >> Cost >> cost. It is cost. But they like they like CHP, but they don't like the cost. And for clarity, our plan design can be identical, co-pays, out of pockets,
whatever. We can set it identical now. But you're going to come back with advice based on pricing to say, "Hey, we recommend this or that and this our decision what we want to go with." Realizing there's going to be a price point reflection happenings if we choose to go with our way versus your
recommendation, right? You can carbon copy your plan designs the way they are right now for the cost, right? Just to your point, that $15 co-pay isn't just there as a uh, you know, as somebody from, you know, the ferry coming in and
delivering, you know, to the employee, right? So, the question is, is the employee willing to pay $50 if they saw 200 more in their paycheck every month? >> That's the education part. We got to do a good job.
>> That's the analysis, the plan design part. She'll provide that data to us. >> We can we have we have the ability to tell you if you do X Y and Z it will affect you over here A B and C. >> Yeah. >> In your plan cost
>> as a collective piece of what your contribution what your employees have here. Yeah. We'll be able to give you options to either make those plans and plan changes or not based on the tolerance and the desire what your employees want. And it could be that you offer a lean lean plan that has a low
dollar co-pay and that you offer this high deductible health plan over here with a much higher uh you know they don't get that first dollar coverage be able to go and pay $15. You know maybe they have a deductible they got to meet before they get any coverage at all. If you if you got a lot more in your
paycheck would you be willing to roll the dice? If you're younger, you're in your 20s and 30s, I'd rather have a much cheaper plan and have catastrophic coverage for that anomaly that you know it's 30 year olds generally not to have a heart attack. They could, but could they recover from
a five or $10,000 time if you're 20 or 30 years old? Yeah, you can recover from that a lot easier you can if you're 65 or 70. >> Now, I'm assuming you can get before we sign a contract to go with fleet. you would you be able to quote the board and
say, "Hey, listen. This is the here's our data. We're giving it to you. You're giving us the data back and saying you we can offer these carriers at these prices at this plan design this cost." >> I would love to see one kind of I mean really I don't know if you have this because I don't see a lot
is probably the closest Dixie might be close. Do you know would you be able to show us like what they're paying now? Kind of give us an example or do you Everybody's force contribution is different and everybody's playing designs are different. And again to your
point about could you take our data there won't be any >> information you're gonna have to hear there there's there's more than that plan is what we pay our contribution employer contributions and so forth and you can shop it for us right and then
give us in other words we we we're not going to sign a contract with you before you give us a look at what our plans options would Is that correct? >> The participation agreement has to be signed before I can put all the people inside the program and I'll talk about
who those people are to work. >> But that doesn't mean we've entered a contract. >> That does not mean that you have it doesn't mean you have to come to sleep, right? >> It's a desire to we we're looking at >> that seems like that's our step. I mean, >> so I I have one more actually one more
question before I make the comment I was about to for findings. What does this look like structurally for finance and management and accounting? I'm assuming we'll set up an account that'll be our account that we fund. Your account gets
set up at fleet that you all fund and the funding recommendation is again that that number of it's it's word contribution plus employee contributions and your fleet fee which I'll talk about again with transparency that goes into that account. So we all have access to
that account. you control that account for the the board. >> We op we operate to pay the bills out of that on behalf of the district. That's we're not having to add one or two people inside your finance department comes in. >> So if we see so the question well and that's great. So you're in other words
we're funding it. So basically the only thing we're going to do as a school board is we're going to hold the contributions from employees pay. We're going to make our contribution from the board. We're going to cut a check once a month to go to that account with >> fleet goes to fleet
>> and then you're going to manage all the administration of it, all the claims and then you're going to pay out the claims to the carrier as needed. Now we have to keep 60 days by statute in that account. If we see there's more, can we say, "Hey, you know what? We would like
there's $100,000 over 60 reserve in there. We want $100,000 sent back to us. Can we request that not happen?" It's it's your money and so anything over that reserve you can ask for that 60 days you can
>> however there are options there are options there are options for you to take and invest that we have actually an investment tier structure uh inside fleet you can take that reserve over that 60 days and put it into money market or into what we call a tier three
investment account where it earns a little more money you still have liquid access to it within within I that 24 hours 24-hour limit with access to it, but they earn higher interest on it. >> And thus the interest earned on that would basically be a reduction in the total premium increase. >> Well, it goes back to your pops goes
back to you. You decide what you do with it. So then goes back to >> if we exit if we exit this, >> there's a runoff period for a certain number of months at which time you cut a check to us for the full amount in that account, send it back to the school board. Correct. If we decide, hey, you know what? We want to get out of fleet.
We don't want this. We want to go to we want to go fully insured, not selfinsured. Again, >> that that's the practice of >> X number of months after whatever's left you you get back again. We haven't had anybody leave. But here's how here's how I understand that runs out. So, let's
say you decided to to leave September the 30th and you you know, you you' know that in advance. You'd say in May, June, July, we're leaving in Octo in September. We're going to go back self fully insured self insurance October one. that 60-day reserve is is there and
so you're out of fleet. You're now on a new plan, but your reserves are being used to pay that run out for the 60 days. Okay, >> make sense? If there's anything left after that, which hopefully there would be out on a good beard, you wouldn't have a bunch of times left. >> That money comes back into the district.
Yeah, but coming in there's no contract. >> But coming in, that's how you build your reserve the 60 days because when you leave fully insured, okay, you're not going to get any claims. They are really in for 45 to 60 days at least. So, you're not paying any claims, right? Okay. The first couple months because
they're not they're not hitting your plan yet, right? >> Okay. So, that's where that's when you go and observe that you have to stay for those 60 days. So you don't have to take it out of your CFO's budget. Take two months of health insurance premiums out of that. But you're building that money.
>> Let me go back some. You said everybody's contributions are different. I still would I personally would still like to see a county of similar size as to what they're doing right now. If it's Dixie, and I mean, I know they're bigger
than us, but if it's Dixie, I still would like I think we need to look at that because if we go out here and and think we're going to get a better rate, you know, we need kind of need to know what's the bar right now. You know, if we and it be great, we only got 90
employees or whatever that's tapping into our insurance even though they might be giving more. I still want to see that. I still want to see a comparison. >> Yes, it's different. We know that L, like I said, Lafayette is probably the closest. They're not on with you guys
yet, but I would like to kind of see a comparison. >> If I could, if I could rest question, here's here's what's happening for you all to be able to see what's happening and we can share that certainly. You can get Mike Thomas also in Hamilton. They're about 130. Okay. They're they're
they're both fleet members are both onboarding right now from their fully insured programs into their self-insured program. So, we're working with the stopw design changes that they want to make in those two districts. Dixie, and you can write this, this will
be helpful to you. Dixie will be active self-insured as of July 1st. >> Oh, okay. So, they're not there yet. >> They're not there yet. >> They they are they are there's passed the participation agreement and they are we're working with their agent, their
hub, right, to get their pricing in order. So you'll be able to see what happens under a program by July 1. >> Okay. >> So the participation >> is one slide. >> So the participation agreement gets the
process started but does not enter us into a contract to go that direction. That's in other words we're not the participation agreement is to start to investigate the process more fully but that's not executing a contract for us to be selfinsured going with a different carrier. Correct. Carrier. That's
correct. So in other words, the the next the next phase of this conversation, if we're happy with what we're hearing and seeing is we need we need to execute that agreement where we can actually get data to know how this looks, feels, and how we would want to proceed or not. Is
that right? That seems reasonable >> to get the data is the other >> the data from you as far as you be with this company or this company, this will be your premium cost. We can start working in the advising phase because with that participation, let me let's just get to the last chapter of the
book. Everyone wants what's going to cause let's just talk let's just talk let's just talk Brad stats here. What's this going to cause? All right. So the rates are the rates are set and approved by the member districts. Okay. Uh so that's
the first question is can the rates go up or down to be a part of fleet? If your superintendent that sits on the board votes with the rest superintendent raise and lower the membership raised that's how it gets raised. I don't determine those. Nobody else in the program. Um it cost $10,000 one time. You pass
the participation agreement the fads invoices the district within 60 days. $10,000 one time. If you come off if you come October 1st of 2026 active selfinsured fine. If you don't come till
October 1st, 2027, 2028, doesn't matter. You only pay that one time. So, the timeline still remains up to the district. We will do some initial work for you and giving you what we can give you with the limited amount of data, which will be nothing outside of what your board contributions are and how
much you paid in premium right to the carrier. we can start giving some information and providing some information that will help you make some determinations as to where you would you might want to go in terms of a carrier whether it's United or or Veritane or or whoever else uh to help inform your
decision of when you come sorry we're going to be guaranteed a maximum annual cost correct is there to >> be a member of fleet >> well no no if we went to if if we move become a member of fleet and accept self insurance. We're going to be there will
be a guaranteed maximum annual cost that we will get out of our like stop loss at which we know we will not spend over a certain number of dollars. >> You will know what your maximum exposure based on where your stop loss attachment point guest is is placed. Uh
>> and we can and we can fund this based on that maximum exposure amount. Okay. So then monthly we would fund this maximum amount divided by 12 be the monthly contribution we would make to this fund.
Right now, if any claim amount in say a said month is over the amount of the contribution, is there a cap that we would pay out of pocket? That in other words, we have a a million dollar maximum amount and something catastrophic happens to the whole family
that's insured and it's $800,000 hospital bill, lifelike, whatever else. Month two, we're not going to need to come up with $800,000 to be able to fund that account that we don't have. Or will we? or is there a maximum amount that would go in per month and then each
month that max increases and as long as we fund it that month to the maximum amount then by the end of the year we're going to be safe. In other words, I want to make sure that we don't have something happen and be like, "Holy cow, we got to come up with 800 grand, right? >> What are we going to do and have to go the long pay it?" You see what I'm
saying? Just to recoup a loan. How does that look? >> So, your stop loss to your point on that is exactly your safety net. Your stop loss. That's why choosing and working with you and your finance department, your finance folks as to what amount of exposure you want or are willing to
accept. It's like choosing the deductible again right on your car. >> If I don't if I know I'm not going to have any cash to fix my truck when I back it into a tree at Deerwoods and I'm willing to pay for a $500 deductible and the carrier's going to pay for everything above that, that premium is
going to cost me more. If I'm willing to say I'll pay the first $2,000 of that, uh, my premium is going to be less what they charge me. You're going to decide where your deductible, where your attachment point is. We're going to make a recommendation to you. We're saying, "Hey, you're small district. You only
got you only got a certain amount. You don't have a lot of room for error." Let me put it that way. So, your stop loss attachment point maybe it will be lower than somebody else's that's much much larger, right? and that stop loss and that that stop loss point to protect
from that family that generated $800,000 worth of claims and your overall revenue for your overall plan may not be more than $800,000. I don't know. Am I taking a guess? Is it a million dollar8? >> 1.2. >> Yeah. 1.2. All right. So, yeah, you're talking about what three4ers of your
overall spend for your entire district on one particular catastrophic situation. That's got struct that stop loss piece needs to be structured to protect the district so that you don't bankrupt your self-insured program. >> So then monthly is there a monthly cap or could you be completely exposed month
one in a ultra rare unforeseen statistically improbability? >> So if if if we if we start this in October and we have a huge claim in November, we hadn't had time to build our account up. What happens then? Who pays who pays that bill? We're going to
make sure that you got a correct stop loss pause in place. Stop loss. >> Yep. >> It will take effect immediately. >> Yeah. Anything over basically an insurance plan that you pay a premium on. >> It's an insurance plan to ensure your
self insurance plan. That's exactly right. >> Right. Right. >> So again, let's put Thanks for putting back superintendent. Stop trying to talk insurance. insurance program plan to protect your insurance plan. That's right. >> And it's in there right now probably
with capital, right? They take care of all that. They don't >> guarantee they stop. >> And they probably own the stop loss company, just so you know. >> I don't understand. >> And they probably own the stop loss
company too. Blue Cross and Blue Shield probably owns their own stop loss company. They say that's how they make the extra product to sell. >> That's how they make the extra profit. So you have loss now on your fully insured plan that you don't seem. That's exactly right.
>> Yeah. You set off a fee of 10,000 per year to those one time. It sets up your your checking account except all your data stuff all the internal stuff we have to do to get you in the program. Okay. 45 15 across
the program for districts. And so that everything gets set up for your district. Whether you come active in October or a year from October, it doesn't matter. That onetime fee is what the setup fee is. The monthly maintenance fee for every district again set by the superintendent that belong to
it is $225 times the 88 employee you got or 88 employees on the plan not all your employees get 200 employees but you only got 88 taken you're paying 2225 225 only 88 that make sense
per month >> you don't you don't pay on your retirees or anybody on co >> we don't pay anything they they pay the whole >> okay they pay all so Maybe I misunderstood. I I thought there was a a factor of stop loss protection that was
incorporated within the entire plan itself, but then there was a commercial stop loss over the whole plan. >> Yes. My number. >> What he's talking about, we were talking about before the meeting briefly is the risk sharing element. >> Yeah. >> That initially you won't be able to go
into riskier one. And you said, well, why is that? the lead program, again, the lead program set up by the by by by the groups that are members of it. They want three years worth of of data from districts that have been self-insured
to ensure that districts are operating their self-insured program well and they're making good decisions. To your point, they're funding it appropriately. They're funding it to the right level. They're not funding it at twothirds of the level required, but they are they have health. They have
employee health engagement going on to try to educate employees about what they should be doing to take care of their own health. There are actually 24 metrics that districts have to check the box on to be able to get into that risk share piece where ability to pull the stop-loss risk is your own company and
then be eligible for dividends on the back end. And so for a district coming in that's fully insured, you'd be looking at a three-year runway into the risk sharing piece. for other districts that have already been self-insured for five or 10 years and have all those
112 filings on file for us to be able to say, "Hey, yeah, they're doing this, doing this, doing this, doing this." They would be eligible much quicker building the risk share. Understand that? >> So then there was an annual stop-loss and a monthly stop-loss component that we would have to purchase into
>> your month. You would have a yearly stop-loss contract. Good. It would be whatever the number is your contract on your stop loss costs this. >> How's that? >> Yeah. He's he's what he's doing. You're thinking you about it on an annual basis. >> Correct.
>> Okay. That's what you're doing because when you find the individual stop loss, okay, it's it's an individual claim loss. In other words, if you have an individual like let's say I I hit the hospital, I'm one of your employees. I hit the hospital and I have to have a heart transplant. Okay. And it's a half
a million dollars. Okay. Your stop loss is $100,000. Okay, you have to pay the $100,000. Okay, like your deductible. But then the stop loss, my claim, my half made claim stop loss pays 400,000. Now that's how it works. See, it works
on an individual claim basis. It doesn't work on an aggregate claim. And and what will do eventually with the rich everything else is they will buy an umbrella policy over the stop loss too. Okay, you that members would have. Okay,
you would have an umbrella over the top of that, too. Let's say they bought, you know, $10 million over the top. Okay, it's kind of like FSB does, you know, for property insurance. Okay, we they have their own self insurance pool that they have, okay, they take care of who's
claiming everything, but then we have an umbrella policy over the top and then you can even buy an aggregate policy over top of that as far as it goes. That's all board decisions that we get technical with the decision. >> Sure. >> What happens then if if we if you say,
"Hey, there's x number of claims to pay and you have x number of dollars in your account. We have fund it to the max amount of exposure each month starting off and we're short." What happens >> then? we have to contact you all and say listen we've we made a recommendation to
fund at we call it a 90% confidence interval meaning that we are 95% certain that if it's funded at this level regardless of what happens over the course of the year with the stop-loss policy we have in place and with your funding level that your claims aren't
going to outrun your revenue that you're putting in. So if you're doing that, we'd have to come back and say, "Listen, you know, we, you know, with all due respect, you're short, but we made the recommendation for you to fund at 90%
confidence interval and you chose to fund it at 70%. Let's say we funded at 100. What if we funded it maximum out pockets 1.2 million, we funded $100,000 every single month, month three, we don't have enough money because of something that happened." What happens?
>> Don't know that. I don't know that what happened is you're >> Hurricane Michael is what he's talking about. Hurricane Michael showed up wiped us out for for example like for PAC you know we they the top thing was $75 million for all the all the exposure but
we were at 76 million or something. What happens when we're our bill comes to 78 million and you've only covered 75. >> Right. Right. Well >> case there we we would be the district would be >> Yeah. But I mean your stop your stop loss policy that's why stop loss so
important is to protect you from having that situation occur >> and it could it could incur month one I mean it's maybe a% chance but if something happened heaven forbid
anything could happen at a very unlikely probability that maxes it out month one >> you're going to have That's right up front. You going to It sounds like maybe you're >> And I can tell you >> jump it out there.
>> It doesn't matter. You're going to pay your claims one way or the other. Okay? If you have a horrible year this year, fully insured, let me tell you what your rates going to be next year. >> Okay? It's going to be they're going to get that money back. You're going you're paying your claims one way or the other.
>> Okay? That's just a fully insured carrier going to make sure they're they're getting that money back. Then you have a good year and they're >> they're keeping stay in the good years you keep it all. >> Yeah. >> So when this money goes into this account, we made, you know, we open the account
$10,000, whatever, and we put this money in and then, you know, keep continue to build. Will our will our CFO have access to that account or will he get and I skipped over that slide so we can get to the Q&A part because
people get a report kind of like it's a >> I did I did I send you a did I send you a sample CFO report before I did not I have one I think with me if not I'll email it to you. So the CFO to your point gets a monthly reconciliation and
bank statement u every check that was paid. Okay. >> They also get and I think this this this visual will be helpful here to get back to the PowerPoint we didn't touch on. Uh it's this page right here. >> Uhhuh. >> She'll have she'll have access to a
dashboard. she has access to that board in a monthly packet and everything comes already completely signed off and ready to roll in terms of audit ready purposes. >> Okay. >> So this this dashboard helps you see and I I you know being a car I think of
these things these three things right here at top kind of like RPM gauges. >> Uh this is just an example actually this is actually real data for one of our districts. that left hand column where you see the RBM gauge prior year-to- date cost ratio 51.9%
you can see they had claims of 1.97 million but they had they had funded it at 3.7 million year to date so they were running good that next month uh year-to- date cost versus uh revenue they're
running 81% 6% benefit loss ratio you know you know what an MLR is I know you you know the ML largest. That means is that for every dollar they put into their account for uh this particular time, they spent 81.6
out of every dollar, which means they're they're still running well. >> This is the month that you talked about right here where things went bad. They had some high cost claims. They spent 14.7 cents more per dollar than what they funded the debt. So, it
ran high at 1147%. You don't want to be over 100% ever, but in this month they were. This at the bottom shows month over month. That dotted line that runs across horizontally the entire page the 12-month period. That's the 60 that
represents the 60-day reserve amount in this particular district. You can see I know it's very small and I apologize. It did not it did not uh print out real well. That first gray vertical column says starting fund balance and I think it says 2.39 million or something like
that. So you can see the amount above that dotted line is their amount of excess above the 60-day reserve that they're required to keep. So month over month they were growing their fund balance in savings account for the rainy day. And then that last month you'll see
that little strip of red on the top of that gray bar graph that is right here. If you'll see you see that a little bit the red on top of that cell that is representing what happened here but they run they ran over they went to 114% that
month. So they actually decrease their fund balancing developments. But there's still the goal as a district, bless you, the goals of district is to get as much in reserve as you can to help offset the likely strike here without having to do
anything to major cost with your employees. >> Beautiful have that data. >> That's what you'll have month over month. Every month you're going to get up-to-ate data. your CFO is going to get some entire financing package and this is the dashboard you see how see how
your program is running. Let me touch on one more thing before I just turn it back over for questions. So, you just want to see some black. >> I want to see, but I'm I I want to go back and look at our it just go back and look cuz I remember us
talking about this when we did this. We didn't couldn't get the data and I I may be wrong, but did we write it in our contract >> that we wanted the data? Just add just look at okay
>> this uh slide right here fleet partners operational components. Um I just wanted to touch on that real quick. The the four the four cogs in the wheel if you will of what makes Sleep run. PADS is the administrative organization. I work
for PADS and usually and for the board uh members that uh that are members of Bale Analytics does the program management. They do that 112 compliance report uh that has to annually. Uh they they work with best practice and general compliance contract management and
vendors that we bring in the programs and doing the running the uh doing the analysis and providing those numbers back to the district. All is our actuarial arm. They run the recommendations for what okay their data says this what does it mean they should
fund their account at they also place the stop loss. They go shopping for the stop-loss and pharmacy benefits uh parts of the overall plan for fleet member districts. All is a top five brokerage house in the world. They do not work with any other school districts inside
the state of Florida other than fleet member districts. You only get access to a lion if you're a Florida school district by being a member of fleet. And they're huge and they have power in the market. That's how we get uh instead of two stop-loss carriers to a small
district, that's how we get 10 or 12 to the table. Visit is the accounting model. So that dashboard that I just showed you, the CFO package comes monthly with every bit and granular piece of information that you want to see comes right out of the FSBA visit
office, the accountants that work there. We contract with them to do the bookkeeping and housing of the account. So to your point, your account is still your account, but it's at fsbit with your name on it and they're managed in the overall operation of your program
inside from a financial account perspective. Do y'all know what fisit says? $32. >> Do y'all do y'all know what bisfit stands for? >> No. >> That it's the Florida school board insurance trust. Am I correct? schools
that they've been managing trust fun money for 45 years. >> Okay. So, superintendent association decided, hey, why don't we do a lot of big accounting on them when the schoolboard association actually has one that's been running for 45 years. So they decided to contract with that
partic county and they run the dashboard comes through Fisfit and it's almost identical to the dashboard that FISB members get on the property casualty side all the way our general audit that we have every year. You said for auditing purposes I
mean we we get I don't know I don't think they come in every year. They come in every three years a three or five years. >> Yeah. So when they come in this I'll touch on it. We you know as you know we
stop everything we speak people but have we have you guys went through an audit yet? >> We have districts that are fleet member districts that have been through financial aids. >> Okay. >> How did they fair? They >> we don't have any there's what we have what we have and what we produce the districts is going to have is is going
to be audit audit approved. >> Okay. >> Well and in fis goes through it all year. a sock audit, their service organization control audit which is intensive floor to ceiling everything they do. Okay. Um and they have never had an
audit exception. The 11 years that I was there, we never had an audit exception. >> That's good. >> We and I met with FSB. We were talking about when we first met, I met with him in January 21. I I mean I look at all costs what and and we talked about
property casualty which is what we have through PAC we were coming out of hurricane Michael they you know that was a that was a they did us great you know and at time I didn't think that was a real fit but uh how many districts are with Fisfit 14
>> uh property c the consortium has has a good a good group right now and so but I've I've been shopping you know meeting to see where can we save money Where can we save money? And this seems to be this rolling out because everybody's not in Fisfit, but all the everybody's in fads.
That was a natural marriage >> to to to pull that out, but still have have a relationship with Fisfit. Um, it's made up of some really high quality folks that have have some longevity in doing financial stuff. So,
>> would our retirees still be part of this move? I mean, they would be off of it just as well. We still have to offer retirees. >> Yeah. But you don't get any cost through u late week for that. You're not charged the PVP amount retirees.
>> You don't get charged 225 being there. >> Excuse me. >> He said earlier the employees per per employee end up cost an additional $22. That's their part of pay, right? >> It's $225 on the number of employees on your plan.
>> That's what I'm looking at. another $2,200 per month, but that would be our cost. Save up to $100 on there, >> the $26,400. So 36, $37,000 for the first year >> and then >> and then for 10 years, if Kyle raises
it, we'll get him fired 225. >> But all the savings numbers, we've already calculated that in for district. So, so when we say you save the 12% that's after eight costs that you have with fleet those
that's correct that yeah >> um I are you did that back completed your presentation >> I I I'm just having your thought and I I think great presentation very simple
>> um I still have a lot and I am one of those you know I'm gonna try to rip it any way I can to make sure that you know before we jump this is me you know I can only speak for me but I I love what what
you're doing I' I've been screaming consortium I know I'm using the wrong word trust whatever it is >> for for a long time because I know there's buying power that's what I did in my past life I was a procurement person so um the only thing that
concerns me a little bit right now and again I'm speaking myself. This is new April 2025. We're not even a year and we will be next year. >> Yeah. >> Um the only another concern is that we just don't have any comp. I would love
to and I told you there's not going to be fitness dead or I would really like to see if there was a cost savings, you know, when somebody went in at at a at a small size like we're going to be, you know, and and what that looks like compared to our current plan because
we're in a contract right now >> and we've got renewal clauses right now. Um, so you know, if we go changing, you know, and we we go out there and go on a limb and they go, you know, you're back, you even higher
than what you were, or we've got not as good a coverage or not or whatever. Um, you know, that's that's something that's that's very interesting to me. Um, I do have some contacts in some other counties and I will be reaching out to them to see if they've
got any, you know, some of their challenges and what they've been going through. I'd love to I'd love to know what the challenges have been. Um, I don't think we got into that today a little bit and I don't want to get in those weeds right now, but and you did a great job with your presentation, but I still got some questions.
>> Well, and yes, thank you so much. I appreciate that. Let me say this. Listen, if y'all decide to come to flee to vote next month, we will work as hard as we can to get you up to date. >> And I have full confidence. >> I'm going to sit here and tell you as a superintendent, former superintendent.
Will you have more data to look at and will you have more experiences to look at a year from now for your district to help you make your determination? Absolutely. It's going to look different. >> We like that. >> You're going to have more You're going to have more look you're going to have more Yeah. more water will go downstream and the river by this time next year for
you to take a look back and see. Okay, this is what other districts our sides have experienced by going fleet. So there will be more to look at. >> Yeah, >> we'll support you either to wait. >> Thank you. >> I'd like to say thank you very much for everybody. I know I spent a lot of time, a lot of questions. I appreciate y'all.
I know everybody has a lot to do on a Monday morning, but uh thank you for arranging this. Thank you for your time, your schedule, the presentation, the information. I think it's been very valuable. My personal opinion, obviously, there's more data that we need. I think this would absolutely be
an asset and benefit to every one of the employees within Liberty County School District. I would like personally to see this added as an action item on next month's or this month's agenda to execute the participation agreement to see more information that you can provide to us. If if I'm understanding
correctly, we can't get the information we really need to make decisions without that participation agreement. And if I understand correctly as well, if we don't like the data that's presented after we execute that, we don't have to continue forward. Is that correct? >> That's correct. >> So, it seems like our next step is the
participation agreement. I'm I'm on board with doing that so we can get the data we need. I don't that's just that's just my thought. I know we have until October really to finalize this, but I definitely don't want to rush something in October. So
>> what and what I would say to that is if you wanted this board to go self-insured October the 1st, then you would really have to to your point act on it fairly immediately and go to work immediately to get transition from fully insured to selfinsured,
>> right? >> Because you have to your point procure it, right? You got to obtain a carrier. You're going to have a paying stop-loss quote. You're going to get stop-loss quotes. You're going to get PVM uh contracts. We're going to benchmark that against the trust contract. There's a lot of things that have to happen,
>> right? >> To have an October 1st that would be on my name time frames. Is that doable? Is October if if Okay, so we got a board meeting next Tuesday if agenda goes out tomorrow. If we put that on there, I
want to I want to ask y'all just a little bit more before we leave. If we said that's the direction we want to go and we feel good about that is October 2026 dual. >> Can we bring you a solution and you be active by October 1, 2026? Yes. >> Okay. >> Yeah.
>> Uh it would say >> we have open enrollment the first between August the first week and a half of August. So I would have to have rates and everything we're going to do by then. >> That's correct. No pressure. And we've got a termination clause in our contract
with CHP and I'm assuming it's going to be 90 days. So, huh, >> you got you got 100. >> That's what I'm saying. You wrote >> here. This is going to be my this is going to be my thing. I I don't want to rush nothing. I got boy, we missed that
or we neglected that even unintentionally. I want to I want to make sure this is something that is win-win for everybody, finance, staff, y'all. Uh you know, everything. Um, what is the pleasure of the board as far
as making this an agenda item for next week? I'm >> in favor of that. >> Yeah. Okay. You want to talk You want to talk to me individually? >> Yep. Absolutely. >> That'd be good. >> May May I ask one more question? What other data would you be able to provide without a participation agreement?
The only thing we can probably get you to board member Bailey's point is data relative to other school districts that have now been in a while in terms of what they've Charlotte for example. Charlotte's been around Henry Hardy.
They've been around a long time. >> We could show you kind of over time how their programs have run in terms of you know what increases they've taken, how the board is funded. um you know what savings they got. I know Dninnesota I think was the county that I was alluding
to earlier that we saved on the pharmacy it was right. >> Yep. >> We leverage Florida blue down you know so we can c to your point we can say okay by being a member of fleet so saved x number of dollars by coming to fleet on just their pharmacy alone. I can give you the hard number on that. >> Okay.
>> Yeah. We can >> we can she's more to like the contributions of other districts. >> Yeah. the employee contribution that type of thing to see where they got to their number that that's kind of what you're asking >> kind of but yeah I mean I know there are
more than us I want to speak to that and I'll tell you something if we go selfinsured I'm still not you got to go selfinsured >> y >> before we can go into this right that's what Dixiey's doing right now >> what are we going to do for that we're
going to piggy back off a cry to piggy back off a But we >> where's our insurance going to be at? >> You stay where you're at. You stay where you're at. You're going to be CHP theoretically right up the right
September 30th 2026. >> I think it's >> September 30, 2026. CHP right up to that line. October 1st would would be whoever was selected through an ITN process as your ASO administrative services only
which would be blue United uh Sigma Edna there's meritane there's a lot a lot of carriers out there the subsidiary of United Healthcare so all that would start when I say activate when I say active I mean active
self-insured with a new carrier uh with your PBM contract in place with your stop-loss contract in place with your plan. Basically, it's not it's up and running day one, October 1st. >> So, communication had again
>> there would need to be a a a full-blown information >> sent out to everyone. And I mean like letting people know and even maybe some internal, you know, like full like your executive
staff, they need to be meeting with people to, you know, if we if we decide to do this. I mean, because we know for definite we're not going to have CH if we go this route. We are definitely not going to have CHO. So I think
information is is critical here because you know people don't like change too much. >> Yeah. Well demoted. Well and let me let me share let me share this. >> That's a that's very this hey you can't you need to flood people with information because right
now for the survey there's a lot of satisfaction with CHP. So when you if you change that I know >> that there needs to be a really again a goodformational campaign to say this this is the direction we're going to and CHP is not going to be a part of that
equation but here's going to be the benefits. Now the here's a good question. Why don't we do this in the fall? >> Well that's why >> hold on because Tim and I are talking and he's going these these carers don't want to
come in CHB district. Y'all remember me saying that at the board meeting? That's why I told y'all at the last board meeting. Hey, good news for Ted. They're like, "We're we're going to go ahead and get in there." >> He and I have talked monthly, every other month. We have been talking because at the he said right now, and he
even shared that with us, with Katie and and with Mason, they're they're a little bit of a turf deal. They were they were avoiding the CHP districts. >> That's correct. And so that's why they wouldn't they didn't want to quote numbers. But then when he and I thought
he said, "Hey, good news. Got some new information for you. They're ready. They're ready to come to the table. They're they're going to they worked out whatever they had to work out. I don't need to know what they >> would they be ready come like and give us if we were decide to go and and have a you know a much longer time. You know
what I'm saying? Like like maybe next October October 2027. So we've got time. We got 120 days. >> I I Okay, >> that that right there is like drinking from them. >> I I think I think I think having more
time >> and being more sensitive is always a good a good thing. >> I don't I'm not going to push anything on. I don't want to put y'all This is This is my heart. >> Can we just put a survey out and see how they feel if we >> Well, here's I don't want to put something on y'all where you got to go
chop chop. I need y'all making decision now because you you know look there's a couple things going on here. It it it it it's a um it's not much time to answer those question and and especially now with the time that we have if it's got
to be that fast. That's where misinformation goes out there and it actually foul things up for maybe a year from now. I'm okay with being slow and deliberate and let's make sure we answer as many questions. There's going to be some people that don't matter if you answer every question. They're going to say, "I don't like it. I don't want to
do it." And and it doesn't matter how much information you do that. But right now with We've got an operational audit starting. >> Well, it's this fiscal year. >> Yeah. Yeah. We we we we have operational audit coming up. We're fix We got a
bunch of things coming up this year. >> I don't want to cost any I don't want to cost our employees any money. Agree. you know any more money I you know like even hanging on to it for another year if it costed them that much money and we saw
through your data oh my wow we are going to get that 12 or 7 to 12% you know then that might be a determining factor but I don't have that data to even say to even come in here and go yeah let's let's roll it that's a that's a very weeds
time >> yeah I agree real quick that I do think um minimum we're going to have 8 to 10% increase with CHP. That's minimum. Um I couldn't tell you what our loss ratio is. I don't know about you, we're only halfway through the year, but um that that's
just looking back and kind of what we've been through and we were lucky and fortunate to only have a single digit increase the last two years. Um most districts were at 13%. >> Most districts were double. >> Is that increase coming though? Is it
July? July because I have to approve it in order for me to get ready for my open enrollment in August >> and and by July if we were decide now to go the you know fleet we would be giving them a termination letter. When is our contract expire?
>> September 30th. >> September 30. Oh yeah. >> I got >> Okay. So we, you know, it we're taking a chance by going back in with CHP. >> Yeah, >> you're going to have an increase and it
and it very well could easily be double digit. >> Yeah, >> that's a fact. I I I swerve every time we get that call and and there was there was one time that it was they told us 14%. And I literally to the CHP office and I
I am not kidding. And I took them two pillow honey and a gift basket and I said, "Let me tell y'all something. We this is Liberty County." And it wasn't it wasn't trying to bribe nobody. It was saying this is this is who we are. Okay. I have my Gan Brother CD in there
somewhere. You know, us singing this is who we are. We are poor people and we depend on our our resources, our natural resources. And much past the schools and the CW Roberts and the prisons and the GPS, we don't have people here who make
a lot of money. And and and I had all my data that said about 11 to 12% of the people pay 100% of the property tax in Liberty County. And now we're looking at that being changed in the legislature. We we need some help. >> We need help. Um and you know what? I
walked out of there with a single digit. And so, so what I'm saying is I I'm okay with any of us and all of us lobbying for our district, which we do. Um, but it could be double it could be double digit, you know, and and again, I want to I want to listen to you and I and
this means I said we need to have some one-on-one conversations, but if if the board says move forward, then we we do need to go ahead and sign that agreement. Um, it's all there's a participation for you, right? >> Yeah. within 60 days of of the
participation of >> so when we sign the participation and got >> but but with that being that was question number one if we sign the participation agreement it still if we're not satisfied with the
not satisfied but if we don't feel like we've gotten all the data that we need it still could be October of 2027 before we feel good about that >> so we don't have we're not >> we're we're signing a partic participation agreement, but we're not saying in doing that
>> all we're going to sign a contract and be live >> 1036. That is correct. >> Are we going to get our money back if we decide not to go? >> Oh, okay. >> So, we could go ahead and >> so we could go ahead and put it on the
agenda, Jody, for next week. But that doesn't mean we have to go with this this year. It could be next year before we just >> Well, you mean or not? >> Or not. >> Well, if we if we wind up going with it
in 2027, our 10,000's already paid. You >> understand that? But if you don't go, if we decide to go with it, we're out, >> don't get it out of his talking. Can I tell Can I tell you we made double payment J knows this cuz I told her we
made a double payment on new market tax credit thing there's an extra 10 it's actually there's an extra 10 grand just sitting there in that capital one >> so we make me and James did it when we first started the very first payment we made we thought it was monthly payments
so we made two monthly payments it's actually quarterly payments so we actually have an extra 10,000 sitting there >> okay >> we do have we got bigger on. We're just throwing that away. We're figuring broadly to go with this, but we need to see some more information.
>> Let me just add to real quick. Um I think to talk on what Miss Jody is saying is like say we're with Ethan, we've been with ETH before, but what I feel like she's saying, what I feel like um employees would want to know and I'm someone who has this insurance. I have
employed child insurance. So, I would want to know what are my premiums going to be? um they may not be able to tell us um per se what my premium I say what is my co-ay that's the word I'm saying what is my copay am I paying $ 15 do these CHP doctors in Tallahassee
where we already are all established do they take it like that's those to me are things we disruption >> that is what I feel like she is saved because >> it's an easier sale if that's already that work's been done >> and I think we need to do that before we
send communication out we've got to be able to are all but yes your you can keep your same doctors if you're ever through Tallahassee C you know whatever >> Southern Medical Group that is huge >> probably everybody does any kind of heart or blood pressure or whatever goes
through Southern Medical Group so it'd be great what you're saying it would be great to say hey if you've been on CHP and they do Southern Medical Group if we went with that and they also t medical group also >> yeah maybe even send out a you know who are your providers in these
>> you know like if you have those who's your provider so people can start looking ahead of time and go okay you know Dr. very uh cardiologist. She's good. We good with Southern Medical Group. We're good. >> I think if we had that information kind of give them a snapshot of saying, look,
it's not going to be that big a change on on from a financial standpoint and making sure you know that's our job. You know that what is it what does it look like from a from another county that's comparable or
just a little bit higher? what what are they getting? You know, so we could say, "Ha, we're pretty good, guys. We going we might come down more than 7%." I would love to say that, you know, instead of jumping over here and trying to renegotiate and possibly a double
digit with CHP, knowing we've got to go in and give them a termination clause. I just think there's just a lot. And I also want to say like last year CHP for us and I'm talking employee principal plan not the value plan but principal
plan employee only um the increase was going to be about say $60 $65 a month. Well if you remember I said let's increase the board contribution $45 so that we could absorb majority of that single plan. They only had to pay $15
out of pocket because again we hadn't done raises any of that. So, uh, I don't know if that's what it's going to look like this year if we're going to be able to do take the majority of the cost. So, those are things we need to as best we can keep into consideration and keep in
mind. Um, I still think overall you're going to save. Yes. But it's hard to do know numbers. >> You don't have numbers to compare to. But again, I do want to go back and and this is something we're going to go back and look at. And like I said, when we
got into the RA, I mean, was it ITN last time? Um, we didn't have data. I remember that. I I I want to go back in that ITN and and make sure we stipulated about we want the data at the end. There
was something we worked on that I was just we were just crazy about. But anyway, let's go back look at that. And if we have that data, it'd be a beautiful thing. to >> even even if we just had all of the providers that your people had used over
the course of the last year be able to run that disruption factor report against say hey >> this network this network this network all but two of y'all would would would be able to keep your doctor and we'll get the sign >> we can get that I'm pretty sure that
network we we've got >> that that might be >> that might be on our dashboard now of who all our doctors are and whatever. Now is this just health or is this dental? >> Just health. What we going to do with my
art dental and vision is through standard. >> They hadn't increased. >> No, they they haven't increased yet. Yeah. So with that back out of that, >> right? Okay. >> We might be working on something the dental vision thing with a selfinsured pool. We're not there yet. We're not
there yet. The the big the big >> the big tub for everybody is health insurance. I don't care what district you're in. If you got 100 employees or if you got 10,000 employees, the processes, the procedures, the pains, the goal of health insurance are all the same. Everybody's dealing with the same
animal in terms of how much cost increases coming. So, uh that's that's what we're focused on. So, if if I understand correctly, you you might be able to give us some information from other counties, but to know exactly what the Liberty County School Board
would have available to its employees for for insurance, the participation agreement will be required to be able to really start the communication because you're you're going to you're going to use your resources, your your man power, woman power, right, your human
resources, correct, to start acquiring ing data, acquiring information, acquiring numbers, acquiring everything that we would need to be able to start the communication of information to our employees, >> right, >> to let everyone know that we're looking at this option. So without, if I
understood, so once you really get into it, you might find that there's only two companies or maybe you find there's four companies, right? When you really get into it, that could be available to us that we have the option to pick from, right? And then
we start really getting into price structure, what our price would be. Um, we can talk about some of the fine details to pinpoint where we want price to be. And then we can still use this information, receive this information, communicate this
information to all of the employees within the school district as a phased in approach and decide, okay, you know what, we have all the information we need and we're happy and we're going to go forward with October of this year or hey, you know what, we just we don't
have enough time. We're missing certain key components in information. Maybe we have hard numbers, but we don't have some of the details like the disruption reports figured out. We don't we have respondents from employees. We don't know what it looks like. Maybe we
need to wait till next year. But you're saying you're pretty sure you're give us a hard number, which means we've got to go to CHP. We can say CHP, hey, look, we got this other option over here that's going to save us 7%. You're charging us 10% more. We ain't buy a good
negotiation point, no doubt. 100%. So it would at the worst be a negotiation point. >> At the best it would be we have everything in line. We're comfortable where we're at and we can execute this effectively come I guess open enrollment
time in August, right? To be effective in in in October. >> So again, my my view is the way I see this. Yeah, we might be out 10,000, but I do think this is the way that the future is looking. And to be honest with
you, sometimes we got to step out to to continue to show support because it went from 5,000 to 44,000 from the almost the last time we talked. So, as far as we know, it might be a h 100,000 in the next year and a half. So, I think it's important for us to do our part for
savings. Um, 100% I'm on board, Miss Jody. We need that information and we want that information because we can't make a decision of what type of contract we want to execute with y'all. >> And I would like to have another workshop when we get that
and us to sit down and talk and and really air out all of this and just peel it back, you know, because like I said, I don't want to drink from a fire hose. I want us to really do our homework. to let our our staff know what be very
transparent about what we're doing. And again, we've got a vendor, we've got a contractor right now. And you know, there's a renewal going to get signed or not going to get signed that that has to go through its legal process. So, you
know, I just again, I'm a I'm I'm that cautious person. I want to make sure that we're all on the same page and you know everybody might be on the same page but me but I don't think we've sat here and talked as a board like we should and
that's you know sit down and really had a good conversation with RC to >> it's a huge it's a huge >> it's big I want to share I want to share just a few things um in in a perfect situation which we tried to do last year I'm just
going back looking I I love, you know, go back look at look at u notes and stuff. We actually met in July. We met in the summer. That's when we that's when all of us Mason, you and I, Katie, we all met um because we I think we met
July the 16th. So we we were meeting in the summer knowing we were not going to have anything for October. We were meeting about 15 months in 16 months in advance of thinking possibly October 2026 would be doable. We're meeting in
July of 2025. Okay. So that's I want y'all to know we've made that commitment. But he was very transparent. Right now we got a problem. This is you know we're we're talking but these companies are not looking to deal with CHB districts. So So we've had this
conversation and I'm go I'm going back. We're just now meeting. >> It's just now coming. So, I want I wanted y'all to know that that I've done my due diligence. Ted's been a partner in this. And and look here, October 7th. Just checking in. Got some board members
who asking about status for fleet for fleet for CHP districts. Ted says there's some things going on in that arena. Got got I have circle back with you. We're talk. We're still talking. Hey, I'm following up. This was in October. He and I have continued this
this dialogue. But until now now we've got some green lights. So if if I had it perfect world again, I would say, well, we let's start that conversation almost, you know, well well in advance. But I absolutely don't want to push anything
down anybody's throat, nor did I hear y'all saying that. I don't want to do that. I don't want to do that to them. I don't want to do that to Katie. Don't want to do that to our finance staff. I don't I don't want it to be something. But I if if it's something that y'all say, "Let's go. Let's roll." Then what
he's saying is, you know, we it could happen. But I want to make sure that y'all fully know. We fully know. There's there's a real element of faith here as well. Yes. Um we don't there are some great unknowns. Um you don't know exactly. He can't tell you. He'd be he'd
be lying if he did to come say you're going to say 12%. I'm going to tell you. He can he he could take that data and make projections and still could be wrong in the projections due to what happens in that
contract year. This conversation did not start just then here recently when uh when Sue Summers became superintendent 2008 we started having conversations about self-insured programs. We went through that. At that time, we had three
people who were actively cancer patients who were going through chemo. And and y'all y'all know who a lot of these folks were. Some of y'all very close. And I remember at the time in talking to uh some insurance folks, they said not not a good time to probably start that
program. We had a lot of older uh employees at that time who were going through a lot of surgeries, different things. I remember us meeting in uh in Sue's office at the old location and it was just one of those things that we kind of went around the room and said sounds like a great program but and and
we were spurred on by Calvin County who was sitting there hadn't done it since ' 85. Daryl swears by it now. His mom and dad started that that program. Miss Mary Lou Lew was the finance person and they did that. It might even been Howard Johnson. I can't remember who was superintendent back then, but they've continued that and they like it. But
they've got 19 from what 85 how many years is that? That's you know 40 plus years of of successful things and they've had good years and they've had bad years. Um but it's worked for them and and at some point they had to they had to take a leap of faith to jump on
this. It is is a change. But again, I I want I want unity. This is what this is my wishes as Kyle. I want unity for the board. I I I to me, this is something really ought to be a 5-0 vote and and you know that everybody feels good about. If you don't, you know, I I
understand that and I have to respect that. But I would ask that everybody has their questions answered. Jody, I agree with you. Another workshop once maybe we get something. Let's sit here and vet this and at the end of the day because here's what's going to happen. our our employees, as they should, and our and
our constituents are going to your constituents are going to say, "What what did you do in making this process?" Because it does fundamentally change everything about insurance, health insurance for our employees or for our district, for retirees, and everything. And and I want y'all to feel confident
to say, "We did our due diligence. We vetted the heck out of it. We looked at this. We looked at this. And at the end of the day, we felt like this was a good move." >> And I I'd like to have some feedback from the staff. I I mean I am not >> We can do those surveys if y'all will give me questions. I will absolutely
>> love this. Can Can this be? >> Absolutely. Sure. Absolutely. >> Hey, I mean and it's not on our It's on our website. >> I will do that. Look at the website. >> I will do that. I will send that out and say, "Look, here's I told him this morning, if y'all saw my Monday message, I told them what we were doing today and
I told them I said, "The board haven't made any decisions. We're just we're just talking about it." So, I'll be glad to send that out to them and and let them let them look at it as well and y'all get some feedback >> and and allow them to ask questions about too. I mean, hey, you got any questions,
>> send them to us. >> And when we get there, when we get to this point, >> we'll have, you know, we may have more questions for you. You know what I'm saying? Stuff that we didn't ask either. >> And I don't I'm sure other counties just didn't say, "Oh, we'll sign an
agreement." I thought there had to be some kind of process. >> You'd be surprised. Some very little to none and others six to nine months worth of process. Everybody's different. Every board makeup is different. Every every superintendent is different.
Right. And so, uh, to your point, I love driving God's country around our area of the world. >> I'll come back. I live in LA now. But the bottom line is I don't mind we don't mind coming back the second or
third or the fourth the whatever number of times we got to come back over the next 6 months over the next year and a half doesn't bother us cost you anything uh to have us come talk to your people talk to your teachers have a meeting with your insurance and benefits committee folks all I'm going to tell them is what I know you know tell them
it's not good there may be new information that they get next time that you didn't get because we learned something between this month and last month those new districts came along right But, uh, I don't ever to your point, I don't want you all to feel pressured at all to do anything as far
as making the decision until the superintendent, you all reach that point where you're comfortable, but we'll come back and have our meetings. This doesn't have to be one and done. >> Well, I am I am 100% I am 100%. Anything that will save the staff because I do
think that you like I told you in the beginning, it's not right. It's not fair. um that we can't get the rates that's 50 miles away, less than 50 miles away from us. And majority of people, a lot of people work for state government here, too. And I'm not just talking
about Liberty. I think I think the school districts should be treated as state employees. That's my opinion, and I'll preach it to the bin. Now, can we give $22,000, you know, every month for it? No, you can't do that, but I think the state should Annie up and do it.
>> That's just the way I feel about it. they make enough money. So, and we put enough money back in their state coffers, too, by the way. We we put money back under there. So, anyway, I just want to a lot of transparency here. I if we could save money and save
our employees money 100%. And I do believe that buying power does save money. So, I'm with you all the way. Love it. Love it. Love it. I just need some work. >> I would now be a good time to send out
emails to employees to say, hey, if there's a particular doctor or facility or whatever that you have to see, need to see, please let us know and we could get it with you to start looking at a disruption report just to have preliminary data just to start.
>> Katie says she she'll be able to get that. >> Katie, is there something on our dashboard that shows our or something on CHP that shows our providers right now? I will ask can I get it >> there? There is. Yeah, there is. >> Yeah, they should get that and that way we'll have something
>> because I I have Blue Cross Blue Shield. >> I don't I had CHP when I was in the state, but now I have a company plan of C Blue Cross Blue Shield. So, I'm with I'm with them already. And I don't I don't you know did I did not go with the insurance for for the school because
it's high. I mean it's it's so anyway um I I would love to see that. I definitely I still want to dig in that 10 to please about that. There may be some data somewhere somehow. >> Yeah. If you don't, if you don't get the
data, I can generally tell you from listening to Darren and joining my talk is it um if you we tell you to go ahead and get your renewal from CHP, okay? And if it comes back at 18%, okay, and if you decided to go selfunded, we have no
data to deal with at that point. Our recommendation would be that you go within 18%. But now the 7 to 12% is going to kick that down some. Okay? But you have to realize, especially in the beginning, you don't want to make a mistake, a big
mistake. Okay? You really want to make sure you are on the safe side, okay? When you're building this out. And the other thing I will say, um, you know, from taking a district self-insured years ago, okay, Cypress County, this is a long play game. This is not that you
want to get in and then get out. Get in, get you do that, you're a disaster. Okay? you have like Calvin kind of made that decision and they stuck with it and they have funded it well and have managed it well if you do those things. Okay, self insurance being self insurance won't save you money. Okay,
but it's a commitment on your part. Okay, and the reality is that you're going to have some good years, you're going to have some bad years still. Okay, but at the end of it, I can just tell you working with insurance for 17 years now with school districts
exclusively. Okay. You're going to pay your claims one way or the other. That's the reality. That's the That's the volume. >> I I would personally I know if the board wants to say I would personally like to hear from Katie and and what's your
thoughts on this? >> Um I I am leaning towards going to it honestly. Um I don't have to add another staff. So the fact that they handle all that is a valid point for me. Um I I
again as someone who has the insurance personally yes I want something cheaper. Um I like CHPA for the fact of the low premium or the low co-pays and um just because my doctors are here >> um and I really don't have to change
doctors and now that I have a son but um >> you may not have to. >> I may not have to. Right. What's your thoughts on on you know cuz you're you know we're superintendent we're board as far as and and Lisa you're welcome to
weigh in as well. um you know, from a standpoint of what kind of notification would y'all want? Um from a staff standpoint, like instead of us just pushing it out and go, "Oh, by the way, I don't know if we've lost all
whatever, you know, at least uh 3, four months out if you could." I mean, again, because these employees are going to have to make a decision come August 1st when they're at open enrollment. So three or four months prior to August 1. >> Yeah. Like so really by the end of April
I'd like to know where are we going and if that's doable. >> Didn't y'all say for the same as far as the network? >> No
it's 51% of CHP but their networks aren't they may not be the same exactly the same. >> When did that happen? Oh gosh. I I don't know. I was about I had the same issue that you had with the employees at at FSBA. Okay. That it was
only CHP and CHP every now and then can be unpleasant. >> Okay. >> They can be unpleasant like everybody else. I I had big issues with Blue Cross and Blue Shield. Okay. in it was kind of because they were
united but they were exorbitantly charging us okay versus the claims okay for whatever reason so I had issues with them back in the day but um no hold I got off track
yeah so um you it's just one of those things that you have to play their game they play a lot of games with you but you don't see okay and a veil one of the good things about a veil was we had two people who were bit who were on the dark side for years. Okay, they're on the
dark side for years and now they've came to the light. All right, and they're helping school districts because they get they know all the games that are playing on the backside because they play them. >> That's good to have them. >> So now so now you know Joe and Darren
and them they peak behind the curtain and they go, "Oh no, you're not gonna charge us that." >> Yeah. Um that's really one of the strengths that we have. Um and it really started under FIS that we started trying to look at because we're tend not to school people. >> Yeah.
>> You know, you better have people that know how to play the game. Yes. You better have people on the back end. And that that actually was one of the reasons I was like this was one of our new things was to >> have other people evaluate you know this
it I'm not I will sit here and tell you you know once Florida statute requires if you're on a note negotiation team that you have expertise in the services being sold. Well I'm not an insurance person. Mason's dealt with insurance, you know, and and I'll be honest, I
probably some other ones may have, too, but >> I don't have that expertise, though. I want somebody at the table that kind of knows something about insurance. And so, I I respect that. And there, like I said, when you come from the dark side,
come out behind the curtain and get on the good side, it's a great thing to have on your team. >> Yep. which is what which what which is what the brokers use as exactly what you they'll say this is what we deal with. We we know insurance. We deal with this every day. And that's how they make
their pitch to a school district or county commissioner or something to let us be the one who does that negotiation for you. Uh we we're not we're not married to anybody. We can go get anybody we want, you know, but you pay for that service. You do pay for that
service. And in this this model, you eliminate that middleman person. I I've had some conversations with some brokers and they're like, "Y'all need to be real careful out of that fleet now. Y'all better, you know, right at I mean, right at Shoot, you challenge their business model."
>> And and again, it's not a bad business model. It's not a bad business. It's not an immoral business model. No, >> it's it's it's a business model. It's what they do to sell insurance. It's what you know, you have a broker when you buy a car. you got a salesman out there who is trying to broker a deal. You have it maybe when you you know you
you'll have that with land. People will say, "Well, I don't want to have to pay a broker, you know, to sell my piece of property." But then the broker says, "But this is what we do and and we can sell. We'll get you a higher price. Maybe, you know, we can show more people. We have a network of online, you know, all this kind of stuff." And then you may decide when you do it, but you
will pay that 3% 5%. It's a negotiable amount. You'll pay for that. And and that's that's where the savings for us comes in. when he mentioned CHP, they tell you >> 7% I think six and a half or whatever that whatever they put in there, they call it administrative fee or whatever
they call it, they tell you upfront what it's going to be and and that's that's non-negotiable. Uh I've tried to negotiate that with them. No, that's that's what we get. Um but that's that's them not actually, you know, taking that
7% and going around and trying to find the best deal. That's just with CHP. We've had brokers here in the past that work for 1%. 1%. And would try to try to get us, you know, stuff and that was all in writing. So,
>> I'm just saying there's a there's a golden opportunity. Let me and I I'll shut up and say this. >> My goal last year was if Ted would have told me if he had given us the information we have today back in July, I would have probably we probably could
have spent the fall you know, probably been ready to make a decision in January or October. Uh, no, we don't have we we've we don't have that time. Again, nobody's not his fault, not my fault. We just things have changed as this things evolve. Um, is it doable? Yes. But we
don't have near the the the runway that we would have had before. So, um, I will be glad to send this out to the to the the folks and and as we we'll check back in, see if we can get any data and we can workshop this again um and go from
there. And and again, nobody needs to feel pressure for me to push it, but Katie makes a great point. There there will be an increase and there has been every year for the last 25 years that I've been here except for the Etna years. We've had increases every year
and it's it's been low 1.2 1.2 million. >> Yeah. Cost us per year. What will >> the increase% >> eight? So again, we're almost $120,000 increase
then is what you're telling me. We're at 10 about that same line. >> Now, now the board, if if y'all remember, we were able to absorb some of that. Uh what I think what Katie and I have talked about is that single person who comes in here if if we can get them next to nothing for insurance that
attracts new teachers, young teachers, single teachers. >> Well, that's the major. We have 50 people on the principal choice and 21 on the value plan for employee only. That's the majority where everybody sits. We have a few on the other plans, >> right? So realize you you bring their
insurance down. That's what that means. And >> it is. It is. >> It is. And I I I feel like that's what's gonna happen. Like we're gonna be able to >> a literal raise. >> Yeah. >> It's like literally cash.
>> Talk to us. >> Even if you send us out, we we everybody wants information. The first thing that all the employees are going what's it going to cost me and my doctor there? That's information we can't give them. I mean doesn't matter. We send out I'll work out here. We get some information.
>> How about how about we do this? I'll I'll work I'll word out a draft email and if I miss I'll send that out to y'all to look if you think I've missed something or you say, "Hey, can you make sure?" We'll put that in there and send out >> and we may have to do a FAQ on this too and just stick it out there. you know,
if they send in these questions like we do with our patients Q&A and then, you know, we'll it'll be a live document and then they, you know, what are we pay, you know, what could we potentially increase this time >> and just keep revising that document. I
know that's some workload, but it shouldn't be that hard just upload a PDF, but I think that's something that they need like a forum to go ask questions in. I have no doubt it's going to be cheap. >> CHPs, I mean, they're they're kind of
like a Florida public utility if you that's that's the equivalent to it. They're going to take it to you and get as much as they can. They're not making any money off of them. So, they got to get what they can not state of Florida, but >> I just think they're still in speaking some communication. >> Oh, yeah. I understand that there going
to be some of that. It's just >> information. I know it'll be cheap. No doubt. Man, I got it myself and I can get it cheaper through my job. No doubt. >> But that one of the things there is my daughter. I had to check make sure are these doctors for my wife where they
weren't. So I made educated informed decision. I'm going to stay with the CHB over here. >> But it's the disruption part of it. I mean y'all are part of change of that if you get in and we are too being able to go into it. We got a way if you >> there will be people not happy.
>> Yeah. And you're going to have some that are going to be very happy and everybody's going to be free. >> At the end of the day, I mean, we got to make a decision sooner rather than later. I mean, I'm not saying we're going to make it this year, but >> I mean, if we're if we're right on the
>> for this year, I do think it's doable for us to go this year. Um, I just think we got to be like on top of this and we got to get the questions answered and we got to get the information we need and so forth. You got month you got you got pretty much a month month and a half to get all the
>> all this Q&A and everything else you got whatever got about a month and a half and I'm kind of leaning with Jody on that that's kind of getting down to the wire on some time and that's stretching everybody and I you know again I don't I think
>> I think I think the employees I'm sorry y'all we've all been friends pretty much all our lives even from all the way down the tile. So we know each other very well. So >> sometimes >> I used to ride with I used to set him in
the seat on the school bus. >> What each other alone don't matter if we argue we going to walk out was our >> accent. This has been a great presentation and a lot of good discussion. People got way
to go through it. Appreciate everybody coming out. >> Thank you very much. >> Motion action. >> Thank you. Actually,
outside of me, >> you