Post by 204parent on Oct 24, 2006 17:15:05 GMT -6
District 204 looks to switch health-care plans for big savings
October 23, 2006
By BRITT CARSON staff writer
Time for a change in Indian Prairie School District 204.
On Monday, the school board will consider a new healthcare contract with Blue Cross Blue Shield that could save the district as much as $3 million, said David Holm, assistant superintendent of business and finance.
The move would mean breaking away from the district's current provider, Benefits Systems and Services Inc., which the district had used for healthcare services for the last 20 years.
In June, the district decided to take a look at BSSI and what other options were available. They enlisted the help of Group Alternatives, a consulting firm that analyzed current healthcare claims by district employees to see which services were most utilized. The district paid them $28,000 for their services.
An insurance committee was then formed, with members from each union and administrators, to interview five healthcare providers.
"This is the second largest line item in our budget," Holm said. "We are a very labor intensive industry and it is important we are efficient in this area."
Holm said one of the biggest advantages to the switch is the amount of in-network claims will increase from 84 percent to 98 percent. The district also will see higher discounts for services from providers.
Holm said the $2.7 million to $3.1 million in savings is compared to if the district remained with BSSI.
"We see this as we are setting back the healthcare inflationary clock by one year," Holm said.
"Each year we are one year better off than not having made the change."
The savings will be passed back to the district employees through reduced rates in January when the policy takes effect, Holm said.
Board member Curt Bradshaw said he is excited about the savings.
"It is critical in District 204 that we are efficiently using the resources the taxpayers provide us," Bradshaw said. "We have to be good stewards of the taxpayers' money."
Holm said they will likely continue to keep an eye on the healthcare market about every three years.
Contact Britt Carson at bcarson@scn1.com or 630-416-5269.
October 23, 2006
By BRITT CARSON staff writer
Time for a change in Indian Prairie School District 204.
On Monday, the school board will consider a new healthcare contract with Blue Cross Blue Shield that could save the district as much as $3 million, said David Holm, assistant superintendent of business and finance.
The move would mean breaking away from the district's current provider, Benefits Systems and Services Inc., which the district had used for healthcare services for the last 20 years.
In June, the district decided to take a look at BSSI and what other options were available. They enlisted the help of Group Alternatives, a consulting firm that analyzed current healthcare claims by district employees to see which services were most utilized. The district paid them $28,000 for their services.
An insurance committee was then formed, with members from each union and administrators, to interview five healthcare providers.
"This is the second largest line item in our budget," Holm said. "We are a very labor intensive industry and it is important we are efficient in this area."
Holm said one of the biggest advantages to the switch is the amount of in-network claims will increase from 84 percent to 98 percent. The district also will see higher discounts for services from providers.
Holm said the $2.7 million to $3.1 million in savings is compared to if the district remained with BSSI.
"We see this as we are setting back the healthcare inflationary clock by one year," Holm said.
"Each year we are one year better off than not having made the change."
The savings will be passed back to the district employees through reduced rates in January when the policy takes effect, Holm said.
Board member Curt Bradshaw said he is excited about the savings.
"It is critical in District 204 that we are efficiently using the resources the taxpayers provide us," Bradshaw said. "We have to be good stewards of the taxpayers' money."
Holm said they will likely continue to keep an eye on the healthcare market about every three years.
Contact Britt Carson at bcarson@scn1.com or 630-416-5269.