By: Health Insurance
Submitted: 2009-10-14 13:01:38 | Word Count: 543
CCISD trustees will consider three ways to provide employees’ health insurance, but the district’s unions aren’t sure the district is ready to provide one option.
At its Oct. 19 meeting, the Corpus Christi Independent School District’s Board of Trustees will discuss having insurance either self-funded through the district, provided by an outside contract as is done now, or through a state program.
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With self-funded health care, the district would pay for the claims directly through the services of a third-party company.
“The million-dollar question here is whether our district is ready for self-funded insurance” trustee Lucy Rubio said.
It’s the unions’ concern as well.
Self-funded insurance has a high risk that ultimately taxpayers and employees would be responsible for, union representatives said. If claims are higher than what is collected in premiums, then the district would have to tap into its reserve funds.
“It’s just too much risk for the district,” said Virginia Randal, local Association of Texas Professional Educators president. “We would go into the red.”
Board members asked district staff last year to evaluate options as a way to limit premium rate increases, said Carol Scott board president.
“As stewards of taxpayer money, we have to explore financial options to control health care costs,” she said.
CCISD Superintendent Scott Elliff said staff would make a recommendation to the board based on information they gathered.
“We are not going to recommend anything that we believe would unnecessarily put our district’s financial position in peril,” Elliff said. “At this point we are still evaluating all options.”
CCISD provides group health insurance to 4,183 employees and their dependents through Humana, a plan approved in 2008. Based on increases in health care cost, premium rates for employees could go up to 13 percent within the year.
Fully insured medical coverage involves the district contracting another organization to assume financial responsibility for the employees’ medical claims and for all incurred administrative costs.
CCISD also is considering state’s Teacher Retirement System ActiveCare program, which more than 90 percent of state’s school districts use. Once the district chooses this program, it cannot opt out.
Susie Luna-Saldana, president of Corpus Christi Association of United School Employees, and Ray McMurrey of the local chapter of the American Federation of Teachers also questioned self-funded insurance’s impact to the district.
“The CCISD employees want to remain with Humana, fully funded for another year until the current contract expires,” McMurrey said in a prepared statement. “The economic uncertainty we face today, coupled with public health concerns are reasons why the employees want to stay in a fully funded system.”
Both the city of Corpus Christi and Nueces County employees currently have self-funded insurance plans.
