School district's health plan has unhealthy deficit

BRADENTON – The plan that protects the health of school district employees is not doing too well, the School Board heard Monday night.

Forrest Branscomb said that they've stopped the bleeding, and a deficit of $7.3 million on Dec. 31, 2008, that was heading to a $12 million deficit at the end of 2009 is now $7.1 million. Changes were made to the plan but no increases were imposed due to the recent pay cut, fund revenues are equal to expenses for 2009 and changes should produce a reduction in future costs, but expenses will still add to the deficit in 2010.

”Basically, we stopped the bleeding temporarily,“ he said.

Some district employees have expressed concerns about the reforms being talked about in Washington, Branscomb said, but any changes are probably a couple of years away. For now, he said, benefit changes alone won't work because 15 percent of the population on the plan accounts for 85 percent of the costs, and those 15 percent have serious, chronic diseases like diabetes and cancer. The only way to cut the cost ”to the degree that we have to“ is to raise the maximum annual out-of-pocket cost to $5,000 to $7,000, which could ruin some people or families financially.

”There is definite need for some type of reform, absolutely,“ Branscomb said.

The only option to recommend now is to consider raising the premiums in July 2010, and dependent premiums are in need of special study. They are looking at data to see how much dependents cost the plan and the actuary is working on what the increases should be to get their fund certified to be actuarily sound, he said.

School Board member Jane Pfeisticker asked if there was any data linking Employee Assistance Programs to health care costs, and Branscomb said the data shows the benefits of EAPs, and that they are looking at one company right now that is used in a couple of other Florida counties and comes well-recommended.

Board member Robert Gause asked about raising premiums in mid-year, and Branscomb said that they can raise premiums whenever they want, but they can only change benefits on a calendar year basis.

The good news, Branscomb said, is that medical, pharmacy and administrative costs have only gone up 4 percent, and there's been a 5.7 percent cut in costs from last year.

Walgreens has presented a proposal that may save $438,000 in 2010, and the district ended its contract with Alere to redirect its efforts to provide more local and effective disease management programs.

”I think their model didn't work for us,“ Branscomb said. The estimate cost savings for 2010 is $400,000, and the HealthVantage Wellness Program is producing a strong return on investment.

Probably the biggest cost cut could come from $1 million to $2 million in savings by using an audit to identify and remove ineligible dependents, he said. That should be finished in a couple of months.

In other action

On Monday night, the School Board also voted 5-0 on:

• Approval of Advertising a Notice of a Proposed Rule to Amend Policy 2.14, School Advisory Councils, and Setting a Public Hearing on the Proposed Amendment at the Board Meeting Tentatively Scheduled for December 14, 2009 - p.56

• Approval of New Position and Job Description of Extended Day Program Manager - p.57

• Approval to Grant an Administrative Hearing to Employee Melissa R. Graves – p.59

• Public Hearing for Consideration of Adopting Amendment to Rule 7.15, Purchasing, Bidding & Request for Professional Qualification, was amended to include the requirement for a quarterly report to the Board.

• Public Hearing for Consideration of Adopting Amendment to Rule 4.17, Vocational: Co-Curricular Student Organizations - p.25

Consent agenda

The following items were approved in a 5-0 vote on the consent agenda:

• Approval of Bid on Television Studio Equipment, MCSD No. 10-0025-SM - p.28

• Approval of Renewal (2) on Use of University of South Florida Bid on Floor Resurfacing, MCSD No. 07-0066-ML - p.29

• Approval of the Use of U.S. Communities Government Purchasing Alliance Contract for Maintenance, Repairs and Operating Supplies, MCSD No. 10-0034-MR - p.30

• Approval to Apply, Accept and Expend the Increase in the 2009-10 Farmworker Jobs and Education Grant - p.33

• Approval to Apply, Accept and Expend the 2010-2013 Department of Labor Health Care Grant in the Amount of $4,177,912.00 - p.34

• Approval of the New Agreement Between the School Board of Manatee County and Provider for Clinical Experience for Manatee Technical Institute Surgical Technology Students for the 2009-2010 and the 2010-2011 School Year

• Approval of Braden River Elementary School - Renovations - Change Orders 1 and 2 - Agreement Between Owner and NDC Construction Company - p.35

• Approval of Haile Middle School - Building Envelope Project - Change Order 1 - Final - Agreement Between Owner and NDC Construction Company - p.36

• Approval of Matzke Complex - Permanent Utility Easement - p.37

• Approval of Palm View Elementary School - Additions and Renovations - Change Orders 6 and 7 - Agreement Between Owner and Mathews Construction - p.38

• Approval of Palm View Elementary School - Additions and Renovations - Change Order 8 - Final - Agreement Between Owner and Mathews Construction - p.39

• Approval of Palmetto Elementary School - Change Orders 3 and 4 - Agreement Between Owner and NDC Construction Company - p.40

• Approval of Southeast High School - Heating, Ventilation and Air Conditioning Upgrades/Renovations - Substantial Completion - Buildings 2, 4, 15, 17, 18, 19, 23 and 25 - p.41

• Approval of Dan R. Nolan Middle School ‰Û” Interlocal Agreement for Joint Use of Facilities - p.42

• Approval of Non-Sufficient Funds (NSF) Check List for Collection via Automated Recovery Systems (ARS) - p.43

• Approval of Request to Accept a Gift of a Polyvision Whiteboard and Hitachi Projector - p.44

• Approval of Request to Declare Surplus and Demolish Portables 815 and 816 - p.45

• Approval of Request to Declare Surplus and Donate Computers to Eternity Temple Washington Park CDC - p.47

• Approval of Request to Declare Surplus and Sell Vehicles 103 and 212 to the United Community Centers, Inc., Bradenton, FL - p.49

• Approval of the Appointments, Change of Assignments, Deceased, Promotions, Reappointments, Reassignments, Recommendations for Professional Service Contracts, Resignations, Retirements, Terminations and Transfers - p.51