ASBAIT Board of Trustees 2014-2015
Insurance Trust
2014-2015
Annual Report
Back Row: Jerry Williams, Camille Holden, Dr. Ron Richards, Martie Payne, Dr. Tim Ogle
Front Row: Linda Yazzie, Isela Brown, Charlotte Gates, Wendy Qualls, Kevin England, Dr. Paul Tighe
For more information on ASBAIT or how to become an
ASBAIT Member contact “Client Services” at
Meritain Health, Program Administrator
(602) 789-1170 or (800) 762-2234
www.asbait.org
Trust the people who care for you!
Mission Statement
The mission of the Arizona School Boards Association Insurance Trust (ASBAIT) is to set the standard for service,
benefits, and affordability for the health care of Arizona’s school employees and their dependents.
Table of Contents
1979
The ASBA Board of Directors established a Task Force to look at various employee benefit programs: health care benefits,
unemployment compensation and workers’ compensation.
1981
ASBAIT was formed through an Agreement and Declaration of Trust as a modified self-insurance program. There were five Trustees
originally and Barbara Robey, one of the original five, served as a Trustee until 2013.
1982
The number of Trustees increased to nine and stipulations were added to require at least one of the Trustees to be a school district
business manager and at least one to be a school district superintendent.
1988
The Trustees adopted a strategic plan to promote and market ASBAIT and to make it the best health insurance program available for
school districts. The Trustees continue to aggressively pursue that goal.
1990
Edwards Risk Management (ERMI) was contracted for management consulting services and still serves in that role today.
1996
Administrative Enterprises, Inc. (AEI) became the claims administrator. Leanne Appeldorn, AEI’s owner, had worked with ASBAIT when
it began in 1981 with another TPA.
1997
AEI, now Meritain, became the plan administrator. There were 34 school districts with approximately 3,000 employees participating in
ASBAIT. Annual contributions (premiums) were approximately $10 million. Blue Cross/Blue Shield of Arizona became the PPO Network.
2000
ASBAIT Trustees developed a Strategic Plan for the growth and financial stability of ASBAIT. There were 66 school districts with
approximately 5,600 employees participating in ASBAIT. Annual contributions were approximately $20 million.
2002
Walgreens Health Initiatives (WHI), now Catamaran, was chosen as the new prescription benefit manager.
2003
Edwards Risk Management (ERMI) took over the bookkeeping responsibilities. SYMETRA became the Excess Loss Insurance Carrier.
Over 10,200 employees from 103 school districts participated in ASBAIT.
2004
There were 93 school districts with over 9,600 employees participating in ASBAIT. Contributions were over $44 million. Five plans of
benefits were offered.
2005
Kevin England, Superintendent
Solomon Elementary District
Douglas P. Kienitz, Certified Public Accountant, began performing the annual independent audit for ASBAIT. Deer Oaks was hired to
provide an Employee Assistance Program (EAP) and a Nurse Hot Line Service. Edwards Risk Management, Inc. was hired to provide
a Wellness Program. There were 102 school districts with over 11,300 employees. Annual contributions were $55.4 million.
2006
Jerry Williams, Board Member
CAVIAT
During the 2005-2006 fund year over 14,000 employees of the schools of Arizona were participating. The first community college
also participated. Annual contributions were approximately $70 million.
2010
Buck Consultants began providing the actuarial services and Alliance Work Partners (AWP) began to provide EAP services. Over 26,100
employees from 169 schools and community colleges were enrolled for the 2009-2010 school year. Annual contributions are
estimated to be over $140 million.
2011
Over 28,000 employees from 179 schools and community colleges were enrolled for the 2010-2011 school year. Annual
contributions are estimated to be over $152 million. Eight plans of benefits were offered.
2012
Interactive Health began providing Biometric Screenings. Over 27,000 employees from 170 schools and community colleges were
enrolled for the 2011-2012 school year. Annual contributions were over $146 million.
2013
Over 26,000 employees from 169 districts were enrolled for the 2012-2013 school year. Annual contributions were over $147 million.
2014
Arizona School Plans (ASPI) began to provide marketing services and Aetna became the out of state network provider. Over 22,000
employees from 159 districts were enrolled for the 2013-2014 school year. Annual contributions were over $153.9 million.
2015
Over 24,000 employees from 158 districts enrolled in the 2014-2015 fund year. Annual contributions were over $160.9 million.
Addition of Scrip World to manage the prescription program.
Message from the Chair_________________________________________________________________2
Service Contractors_____________________________________________________________________3
Marketing, Program Administration, & Claims Management____________________________________4
PPO & Out of State Networks_____________________________________________________________4
Prescription Benefit Management_________________________________________________________5
Cost Containment/Well Care_____________________________________________________________5
Wellness Program
Employee Assistance Program
Nurse Hotline
Utilization Review
Biometric Screening
Excess Loss Insurance___________________________________________________________________6
Voluntary Products_____________________________________________________________________6
Procurement Information & Annual Renewal Rates___________________________________________6
Balance Sheet_________________________________________________________________________7
Enrollment & Contributions and Assets & Reserves___________________________________________8
Members_____________________________________________________________________________9
Historical Outline of Key ASBAIT Dates_____________________________________________________10
Board of Trustees
Chairperson
Charlotte Gates, Business Manager
Sahuarita Unified District
Vice-Chairperson
Dr. Ron Richards, Retired
Pendergast Elementary District
Treasurer
Dr. Tim Ogle, Executive Director
ASBA
Historical Outline of Key ASBAIT Dates
Camille Holden, Director of Business
Mohave Co. Community College
Linda Yazzie, Board President
Holbrook Unified District
Martie Payne, Board President
Palominas Elementary District
Dr. Paul Tighe, Superintendent
Mingus Union High School District
Wendy Qualls, Business Manager
Litchfield Elementary School District
Isela Brown, Business Manager
Santa Cruz Valley Unified School District
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Serving Arizona
Schools
Coconino
• Chevelon Butte School District
• CAVIAT
• Fredonia- Moccasin Unified School District
• Grand Canyon Unified School District
• Maine Consolidated Elementary School District
• Page Unified School District
• Tuba City Unified School District
• Williams Unified School District
Mohave
• Bullhead City Elementary School District
• Colorado River Union High School District
• Hackberry School District
• Fredonia-Moccasin Unified School District
• Kingman Unified School District
• Littlefield Unified School District
• Mohave Community College
• Mohave Valley Elementary School District
• Owens- Whitney Elementary School District
• Peach Springs Unified School District
• Topock Elementary School District
• Valentine Elementary School District
• WAVE- JTED
• Yucca Elementary School District
Yavapai
• Ash Fork Joint Unified School District
• Bagdad Unified School District
• Beaver Creek Elementary School District
• Camp Verde Unified School District
• Canon Elementary School District
• Chino Valley Unified School District
• Congress Elementary School District
• Crown King Elementary School District
• Hillside Elementary School District
• Kirkland Elementary School District
• Mayer Unified School District
• Mingus Union High School District
• Mountain Institute- JTED
• Seligman Unified School District
• Skull Valley Elementary School District
• Valley Academy for Career and
Technology Education
• Williamson Valley Elementary School District
• Yarnell Elementary School District
• Yavapai Accommodation School District
• Bicentennial Union High School District
• Bouse Elementary School District
• Parker Unified School District
• Quartzsite Elementary School District
• Salome Consolidated Elementary School District
• Wenden Elementary School District
Yuma
• Antelope Union High School District
• Hyder Elementary School District
• Mohawk Valley Elementary School District
• Somerton Elementary School District
• Wellton Elementary School District
• Agua Fria Union High School District
• Aguila Elementary School District
• Alhambra Elementary School District
• Arlington Elementary School District
• Arizona School Boards Association
• Avondale Elementary School District
• Buckeye Elementary School District
• Buckeye Union High School District
• Cartwright Elementary School District
• East Valley Institute of Technology
• Fowler Elementary School District
• Gila Bend Unified School District
• Higley Unified School District
• Laveen Elementary School District
• Liberty Elementary School District
• Litchfield Elementary School District
• Madison Elementary School District
• Maricopa County Regional District
• Mobile Elementary School District
• Nadaburg Unified School District
• Palo Verde Elementary School District
• Paloma Elementary School District
• Pendergast Elementary School District
• Riverside Elementary School District
Message From the Chair
Navajo
• Holbrook Unified School District
• Joseph City Unified School District
• Northeast Arizona
Technological Institute of
Vocational Education
• Navajo County Schools
• Whiteriver Unified School District
• Winslow Unified School District
The Arizona School Boards Association Insurance Trust (ASBAIT) has been successful in providing comprehensive
and affordable employee health care benefit programs to participating Arizona School Districts since 1981.
As the Chairperson of the Board of Trustees, I am pleased to provide you with this annual report for the policy
year of 2014-2015. ASBAIT provides its members with stable and competitively priced coverage and benefits
along with exceptional service.
For the policy year ending June 30, 2015, ASBAIT membership grew by approximately 1,000 employees, or 4%.
Over 24,000 employees and 158 schools participated in the 2014-2015 school year. Reserves are over $31.6
million including an IBNR of over $17.3 million.
Gila
Maricopa
La Paz
Apache
• Alpine Elementary School District
• Concho Elementary School District
• McNary Elementary School District
• Red Mesa Unified School District
• Saint Johns Unified School District
• Vernon Elementary School District
• Gila County Regional School District
• Hayden- Winkelman Unified School District
• Miami Unified School District
• Payson Unified School District
• Pine- Strawberry Elementary School District
• San Carlos Unified School District
• Tonto Basin Elementary School District
• Saddle Mountain Unified School District
• Sentinel Elementary School District
• Union Elementary School District
• West MEC
• Wickenburg Unified School District
Pinal
• Casa Grande Union High School District
• Central Arizona Valley Institute of Technology
• Eloy Elementary School District
• Florence Unified School District
• Mammoth- San Manuel Unified School District
• Maricopa Unified School District
• Mary C. O’Brien Accommodation School District
• Oracle Elementary School District
• Picacho Elementary School District
• Ray Unified School District
• Red Rock Elementary School District
• Sacaton Elementary School District
• Santa Cruz Valley Union High School District
• Stanfield Elementary School District
• Superior Unified School District
• Toltec Elementary School District
Pima
• Ajo Unified School District
• Altar Valley Elementary School District
• Amphitheater Unified School District
• Baboquivari Unified School District
• Catalina Foothills Unified School District
• Continental Elementary School District
• Marana Unified School District
• Sahuarita Unified School District
• Tanque Verde Unified School District
• Vail Unified School District
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Santa Cruz
• Nogales Unified School District
• Patagonia Elementary School District
• Patagonia Union High School District
• Santa Cruz Elementary School District
• Santa Cruz Valley Unified School District
• Sonoita Elementary School District
Greenlee
Graham
• Bonita Elementary School District
• Dan Hinton Special Education School
• Fort Thomas Unified School District
• Gila Institute for Technology
• Pima Unified School District
• Solomon Elementary School District
• Thatcher Unified School District
• Duncan
Unified School
District
ASBAIT’s low fixed cost leaves more dollars available for claims and preventative benefits. This has allowed
ASBAIT to have single-digit average renewal rate increases for the last ten years. ASBAIT returned an excess
contribution refund of $2 million in 2011 to its members. Since that time, ASBAIT has used reserves to return
excess contributions through the renewal process.
If you are an ASBAIT member, we appreciate your participation and welcome your comments and evaluation. If
you are not a participating member, we invite you to investigate ASBAIT and find out how your district can
benefit from participation in ASBAIT.
Cochise
• Ash Creek Elementary School District
• Benson Unified School District
• Bisbee Unified School District
• Bowie Unified School District
• Cochise Elementary School District
• Cochise Technology District
• Double Adobe Elementary School District
• Douglas Unified School District
• Elfrida Elementary School District
• McNeal Elementary School District
• Naco Elementary School District
• Palominas Elementary School District
• Pearce Elementary School District
• Pomerene Elementary School District
• Saint David Unified School District
• San Simon Unified School District
• Tombstone Unified School District
• Valley Union High School District
• Willcox Unified School District
The Trustees are excited about the future of ASBAIT and its ability to meet the needs of members and their
employees. ASBAIT has been responding to the challenges in the health care field for over 33 years.
Sincerely,
“We understand the special needs
of schools and their employees.”
Charlotte Gates, Chairperson
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Client Services
Marketing Administration
Arizona School Plans, Inc.
Program Administration
Meritain Health
Claims Administration
Meritain Health
Preferred Provider Organization
Blue Cross Blue Shield of Arizona (BCBS)
Out-of-State Preferred Provider Organization
Aetna
Utilization Review
American Health Holding
Prescription Benefits Manager
Scrip World / Catamaran
Auditor
Douglas P. Kienitz, CPA P.C.
Management Consulting/Accounting
Edwards Risk Management, Inc.
Wellness Program Administration
Edwards Risk Management, Inc.
Employee Assistance and Nurse Hot Line
Alliance Work Partners
Excess Loss Insurance
SYMETRA Financial
Legal Counsel
Gust Rosenfeld, P.L.C.
Biometric Screening
Interactive Health
Voluntary Products
First Financial Group of America
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Arizona School Board
Association
-Insurance Trust
Balance Sheet as of June 30, 2015
Marketing
Interested in joining the ASBAIT Program? Our sales and marketing partners at Arizona School Plans, Inc. (ASPI) can show you the
benefits of joining our trust and answer any questions you may have. You can contact them at: Local (602) 249-2031 or Toll Free (800)
314-8333.
 ASPI will guide you through the quote and implementation phase
 ASPI will coordinate all aspects of your renewals
 ASPI will work with your representative (agent/broker/consultant) to deliver the best products for your team
Assets
Investments at fair value:
Marketable securities, at market value
Cash in bank
$50,814,260
$2,972,701
Total Investments
$53,786,961
Claims Administration
Receivables:
Contributions from participants
$695,943
Reinsurance
$1,110,635
Accrued interest on investments
$141,389
$7,970
Miscellaneous
Prepaid expenses
$16,438
Total Assets
$55,759,381
Meritain Health is committed to providing ASBAIT the resources to help manage the long-term costs of their health benefit programs.
By having a focus on current and future healthcare costs, they provide the most value for ASBAIT’s members. We believe the only way
to change the rising trend in healthcare costs is to change the behavior of employees, promote healthier lifestyles, and make them
better healthcare consumers.
Client & Customer Service
As part of a commitment to service excellence, we have structured a client service team to provide ASBAIT member schools with a
dedicated Client Relationship Manager, Client Relationship Coordinator and a Client Liaison. This team will closely work with each
school and proactively provide pragmatic advice and insight into the ASBAIT program and utilization trends. We have a strong belief
that through education and service, we can help ASBAIT member schools improve the health and well being of their employees.
Dedicated service representatives are trained to assist employees with all aspects of healthcare consumerism. As the emerging role of
consumerism in healthcare continues, we place great emphasis on our members with every opportunity made available to us.
Liabilities
$23,207,008
Contributions collected in advance
Accounts Payable and accrued expenses
Estimated health claims incurred but not reported
$913,263
$17,341,000
Total Liabilities
$41,461,271
Net assets available for benefits
$14,298,110
PPO Network in Arizona
The ASBAIT plan incorporates the Blue Cross/Blue Shield (BCBS) of Arizona PPO Network as part of the plan design. BCBS has been
cultivating relationships with a wide range of health care providers in a long term effort to manage costs, assure quality providers and
enhance client satisfaction. The plan designs available offer options of co-payments, as well as out-of-network options; however, the
costs to the member are greater for out-of-network services.
Out-of-State Network Provider
ASBAIT members have access to services outside of Arizona through Aetna’s broad national network of healthcare providers and
facilities. Aetna's network contains more than 850,000 participating physicians and ancillary providers, with 6,900 hospitals. When you
must visit providers outside of Arizona, the Aetna network will provide in-network benefits.
* ASBAIT has independent Actuarial and Audit Reports performed annually.
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Please note: Transplant services will continue to be administered by BlueCross/BlueShield of Arizona providers only.
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Prescription Benefit Manager
With Scrip World—a leader in the pharmacy management business—ASBAIT can provide the prescription benefits your workforce needs for
good health. Scrip World provides the advantages of high quality and access to pharmacy benefits, with the competitve pricing and
effective cost management. The prescription plan is integrated with the medical benefits and medical management programs and is
continuously monitored for performance by Scrip World’s business intelligence team.
Wellness Program
The ASBAIT Wellness Program, administered by Edwards Risk Management, takes a “holistic approach” to health management and assists
member districts to motivate their employees to make lifestyle changes that affect their well being. They are provided educational
materials, including a quarterly safety, health & wellness newsletter in English and Spanish, wellness surveys, and an innovative incentive
program.
Excess Loss Insurance
SYMETRA offers ASBAIT protection against large or potentially catastrophic medical claims with stop loss insurance.
Voluntary Products
First Financial Group of America (FFGA) is a fully licensed Third Party Administrator (TPA) specializing in the implementation and
administration of Cafeteria Plans (Section 125), Tax Deferred Savings Plans (403b), Deferred Compensation Plans (457), Retirement
Plans (401k), Voluntary Payroll Deduction Plans, and Flexible Spending Accounts. No Charge Debit cards for Flexible Spending Accounts
(FSA's) are now widely used by FFGA's customers. There are no charges to the district or employee for Section 125 administration or the
duties associated with 403(b) retirement services.
For more information visit www.ffga.com
Procurement Information
Employee Assistance Program Nurse Line Services
Alliance Work Partners is the provider of the ASBAIT Employee Assistance Program (EAP). The EAP is a pre-paid, confidential benefit for
ASBAIT employees and family members offering telephonic counseling and up to (4) free, confidential personal counseling visits. Other EAP
benefits and seminars are available.
Alliance Work Partners also provides a 24 hour nurse line. service for health assistance and questions.
Arizona Revised Statutes Section 15-382 allows schools to join simply by receiving and accepting an ASBAIT offer. Before you sign your
next renewal, you need to compare the value of one of the ASBAIT plans to your current program.
TESTIMONIALS
Now that I am cancer-free and back to work, I feel it is long overdue that I write to thank you for all your help during my crisis.
You and your company made the whole cancer experience bearable – knowing everything was taken care of with no inconvenience to my family whatsoever. You really do make a difference in people’s lives, and I am so glad I was with ASBAIT through
this whole thing. I feel like Lance Armstrong!
Teacher, Nogales Unified School District
Utilization Review / Case Management / Disease Management
ASBAIT has contracted with American Health Holding (AHH) to provide medical review and pre-certification of selected services. AHH also
provides a Disease Management program. This program is designed as a cost containment program to maximize the Plan benefits and
reduce unnecessary hospitalizations, surgical procedures, and other diagnostic services.
ASBAIT helps our employees stay healthy. ASBAIT not only provides enrolled employees with preventive care, but also brings
the care to us on-site via biometrics, MOM and flu shots. They also provide Nurse Health Coaching and an EAP to help with
employee “needs” on a personal level. These services alone provide a great return on our investment. It is such a pleasure
doing business with ASBAIT and working with the helpful staff. They are very knowledgeable of their services and ability to
help me with my needs. This alone makes a big difference in a person’s life, especially dealing with insurance coverage.
Mingus Union High School District
I have never had any issues with getting my medical needs taken care of. The few times I have needed referrals, it has been a
painless process. The reps who come to our In-service are very helpful and knowledgeable. I really like the access I have to
claims and history on-line. The services ASBAIT offers are GREAT!!
Employee, Wellton Elementary School District
Biometric Screenings
ASBAIT has always considered the health of member employees to be our highest priority. We know member schools success is based upon
many things, not the least of which is a healthy, vital and productive workforce. To complement on-going efforts to promote and support
health and wellness, ASBAIT will be providing a unique health care opportunity. The program is designed to provide early detection and
prevention of disease, a strategy which improves health, vitality, productivity and lowers costs over time. Early detection and prevention
benefits not only individual employee lives, but also the schools and districts in which they contribute.
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“We are constantly finding new and better ways to do
business to create value for our membership.”
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