School Groups Applaud Low 1.9% Rate Increase for Educators Health Alliance Insurance Premiums

School Groups Applaud Low 1.9% Rate Increase for Educators Health Alliance Insurance Premiums

Lincoln, NE, October 28, 2014 – Three statewide education groups said premium rates for the Blue Cross and Blue Shield of Nebraska (BCBSNE) health care plan used by nearly every Nebraska school district will increase by only 1.9 percent next school year, a rate that is significantly below national cost increases and well below Nebraska’s historic yearly rate growth. 

The Nebraska Association of School Boards, Nebraska Council of School Administrators and the Nebraska State Education Association jointly govern the Educators Health Alliance (EHA) plan.

The 1.9 percent increase is for all benefit options and is effective Sept. 1, 2015. The Board of Directors of the Educators Health Alliance approved the renewal rates and benefits last Friday.

When the 2015-16 plan year takes effect on Sept. 1, 2015, it will mark the 13th consecutive year the rate increases have been less than 10 percent.  The rate increases in 2011-12, 2012-13, 2013-14 and 2014-15 were 0.0 percent, 2.99 percent, 6.4 percent and 2.3 percent respectively. The EHA has kept the increases well below national trends.

“Several factors contributed to the EHA’s ability to achieve a rate increase below medical inflation,” said Neal Clayburn, EHA board chair. “The wise use of medical services and maintenance of healthy practices by our members has resulted in favorable claim experience. Additional factors include the work of BCBSNE, the ongoing dependent eligibility verification, the EHA wellness program and the collaboration of the three associations that govern the plan.”

Beth Kernes Krause, EHA Vice Chair and Auburn Public Schools Board of Education member, said premium rates will increase by 1.9 percent for all rate and benefit categories. “This includes all medical and dental plans as well as active employee and early retiree categories. There will be no changes made to the EHA available plan deductibles, coinsurance, or copays for the 2015-16 plan year.”

“The EHA continues to work diligently to achieve rate stability and increases below health insurance industry averages,” said Jack Moles, EHA Secretary and Superintendent of Johnson County Schools. “In addition to good management of the plan, utilization substantially affects rates. Our members are making smart health care choices and that is reflected in continued favorable experience with regard to utilization.”

The EHA plan’s insurance coverage with Blue Cross Blue Shield of Nebraska includes more than 70,000 education employees, early retirees and their dependents in more than 400 school groups. The statewide health care network was formed 45 years ago. A 12-member board representing NSEA, the Nebraska Association of School Boards and the Nebraska Council of School Administrators now governs the health care plan.