Egyptian Area Schools Employee Benefit Trust
PO Box 270237
St. Louis, MO 63127
The Egyptian Area Schools Employee Benefit Trust was established in 1984 by public school districts in South Central Illinois to provide high quality health benefits for employees at reasonable costs. The expectation was that by pooling claims experience and by controlling benefit design and operating costs, the Trust could offer better benefits, lower premiums and provide protection against the large premium increases often experienced by smaller school districts. Since 1984 the Trust has grown to include over 135 school districts regional offices of education and cooperatives, providing insurance coverage for nearly 15,000 employees and dependents. The Egyptian Trust has consistently offered excellent benefits while maintaining moderate premium increases. The size of the Trust has allowed increasing medical claims costs to be spread over a very large pool of like employees instead of the smaller number of employees of an individual member district. Further the Trust’s audited overhead or operating costs remain a fraction of the overhead and profit costs of commercial insurance programs. Participant input and decision making has created a sense of ownership in an individual’s insurance plan.
The Trust is a tax-exempt organization under Section 501(c) (9) of the Internal Revenue Code. It is controlled and operated by its member districts through their representatives to the Board of Managers. Contributions from districts and employees are held in trust and invested. The assets are used to pay medical, and pharmaceutical claims. The Trust purchases excess loss insurance for individual claims that exceed a designated level. The Trust also offers voluntary participation, dental, vision and term life insurance on a fully insured basis. Detailed coverage information and premiums about these voluntary plans is found at other website links.
The Egyptian Trust now offers multiple benefit plans and allows individual selection among those plans whereby individual employees may choose their respective plan among several plans of benefits.
The Trust offers complete COBRA and HIPAA administration through the Trust’s Third-Party Administrator. Flexible Benefits Section 125 administration and 403b administration is offered at no cost to the employer or employee through the Trust’s valued partner, American Fidelity. Additional information about these services may be obtained elsewhere on this web site.
A Board of Managers comprised of one representative selected by each participating school district governs the Trust. The Board of Managers meets regularly and votes on plan design changes and premiums. From among its members the Board of Managers elects an Executive Committee. The Appeals Committee, appointed by the chairman of the Trust, decides on any appeals filed by individual covered employees. The Benefits Committee, whose members volunteer their service, meets many times through the year and thoroughly reviews possible changes to plan design and contribution rates and makes recommendations on those potential changes to the Board of Managers. The Trust retains the services of a consulting actuary to assist the Board in setting contribution rates to make sure that rates are sufficient to ensure the financial soundness of the Trust. The Trust underwrites all districts seeking admission to the Trust to maintain the long-term health of the Trust. The Trust also contracts with legal counsel who specializes in self-funded employee benefit programs.