Ohio School Benefits Cooperative (OSBC) is a joint self-insurance program of Ohio public school districts formed under Ohio Revised Code Section 9.833, for the purposes of maximizing benefits and/or reducing costs of medical, prescription drug, vision, dental, life and/or other group insurance coverages for the member districts’ employees and the eligible dependents and designated beneficiaries of the employees. OSBC was established by written agreement effective January 1, 2006 and organized to commence activities for the plan year beginning May 1, 2006. OSBC has grown substantially since the time of its organization (when there were 20 member districts), and its member districts are located throughout the state of Ohio, in the counties below.
OSBC offers a member district a choice of two different self-funding methods for its benefits: “fully funded” or “self-funded.” A member district’s funding method may not be changed more often than once every three years.
If a member district elects to be “fully funded,” the district pays to OSBC a fixed monthly amount based on the number of employees enrolled in the types of coverage offered by the district. OSBC is responsible for the payment of all claims incurred by, and properly payable on behalf of, the fully funded member district’s participants and, upon withdrawal of the fully funded member district from OSBC, OSBC is responsible for the payment of all benefit claims run-out for the district, in accordance with OSBC’s governing documents.
If a member district elects to be “self-funded,” the district pays a fixed monthly administrative fee and stop loss premium. The self-funded member district is responsible for the payment of all claims incurred by, and properly payable on behalf of, the district’s participants, less any claims paid under stop loss coverage. Upon withdrawal from OSBC, the self-funded member district, not OSBC, is responsible for the payment of all benefit claims run-out for the district.