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Dr. Barry Kayrell

Dr. Barry L. Kayrell, Superintendent

March 8, 2013

Dear Staff,

As I enter my 7th month here at Hemet Unified School District, I am pleased to say that I have been able to visit schools and witness first-hand the great work going on to support our students. I am also pleased that our budget has improved and we will be able to restore six days back to the calendar for next year. I respect the sacrifices that all of you have made to keep the district solvent during tough economic times.

The health and welfare broker selection process is still underway. Management and confidential employees voted 98.55% to select Keenan as their broker for next year. CSEA had two town hall meetings this week to provide information about broker costs and inquire about our next steps.

As your Superintendent, I recognize that we all share the desire for quality, affordable health care for ourselves and our families. Additionally, you have all given back with furlough days and salary reductions which makes it my fiduciary responsibility to seek competitive bids on all services and products we contract with. The Affordable Care Act (ACA) requirements are forcing change and there will be some inherent differences of opinion about how we should proceed. However, as leaders, we know that change cannot occur without conflict. It is my hope that our conflict is always constructive and that it leads to openness and transparency in our processes.

CSEA requested that Keenan and HUB provide a broker proposal recognizing the unit independently. We were pleased to work with CSEA on providing two town hall meeting opportunities so that members could be presented the information and ask questions that would lead to informed decision making. Remember, CSEA members have only one opportunity to vote on the broker selection at the Chapter Meeting scheduled for Tuesday, March 12, 2013 from 5 p.m. to 7 p.m. at the Nutrition Center. Member input and voting is critical in order to ensure that the voting selection represents the entire unit.

For those who were not able to attend one of the meetings, below is a snapshot of the information found in the proposals:


Keenan:

  • Keenan total compensation for the three-year proposal reflects the following understandings:
    • If all 954 CSEA members are covered, the broker fee will be $35,000.
    • Contract rates for Year 1 and Year 2, with a 3% increase in Year 3.
    • 15% commissions on District-paid Life and Disability.
    • NO Commissions on Voluntary products.
    • NO Charge for the Online Enrollment Program.
    • If CSEA elects to approve Keenan and join REEP, consulting fees will be waived.
    • Compensation for Keenan in a plan year is capped at $35,000 per year for CSEA members.

HUB:

  • HUB total compensation for the three-year proposal reflects the following understandings:
    • If all 954 CSEA members are covered, the broker fee will be $66,780.
    • No commissions on Life and Disability.
    • NO Commissions on Voluntary products.
    • NO Charge for the Online Enrollment Vendor offered by HUB.
    • Compensation for HUB in a plan year is capped at $145,000 per year NO matter how many employees elect benefits.

I look forward to notification of the vote so that we can begin to seek renewal quotes in a timely manner, be afforded the opportunity to review plan designs and cost-savings measures with CSEA, and disseminate the information to its members.

Sincerely,

Dr. Barry L. Kayrell
Superintendent
Hemet Unified School District

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