Egyptian Area Schools

	EGYPTIAN AREA SCHOOLS EMPLOYEE BENEFIT TRUST

EGYPTIAN AREA SCHOOLS EMPLOYEE BENEFIT TRUST
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13 Executive Drive Suite 19
Fairview Heights, IL 62208

Consultants
Tom Dahncke Phone: 618-791-5541 Email: tdahncke@charter.net
Leo Hefner Phone: 618-973-8221 Email: lhefner@htc.net

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 160 school districts, providing insurance coverage for nearly 16,000 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 Trusts audited overhead cost of approximately 3.5% allows nearly $.965 of every premium dollar to be available to pay claims. Participant input and decision making has created a sense of ownership in an individuals insurance plan. To view the most recently available Audited Financial Statement for the Egyptian Trust please click HERE.

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, pharmaceutical and dental benefit 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 Trust had only one plan of coverage until January, 2005, when two additional plans of benefits were offered to both current and new school districts. The plans were named The Platinum Plan, The Gold Plan and the Silver Plan, respectively. Effective September 1, 2005, districts were permitted to offer all three benefit plans to their employees, and offer individual selection, where each employee would be able to select from any of the three plans. Individual Selection provided complete flexibility to the school district and the individual. Effective January 1, 2008, a fourth plan of benefits, The Bronze Plan, a High Deductible Health Plan, which qualifies as a Health Savings Account plan was offered. All four plans use the HealthLink Open Access III managed care network. The Trusts Platinum Plan is very similar to the plan of benefits offered to state employees and retirees.

From the outset, the Trusts philosophy has been to treat all participating districts on the same basis. Once a prospective member district is determined to be eligible for membership by the Trusts independent actuary and joins the Trust, all employees pay the same premium structure for their selected plan of benefits.

The Trust also offers complete COBRA and HIPAA administration, Flexible Benefits Section 125 administration and 403b administration at no cost to the employer or employee. Additional information about these services may be obtained elsewhere on this web site.

The Trust is governed by a Board of Managers comprised of one representative selected by each participating school district. The Board of Managers meets semi-annually and votes on plan design changes and premiums. From among its members the Board of Managers elects a 25-person Executive Committee, which meets 5 to 6 times per year and hears reports from the Trusts vendors and consultants. The Executive Committee also 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 Executive Committee and 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 actuary also 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 is self-funded employee benefit programs.

Districts that are interested in learning more about the Egyptian Trust may complete an inquiry form on this web site or contact Trust Consultants, Tom Dahncke at 618-791-5541 or Leo Hefner at 618-973-8221.