Real Health Insurance Savings Potential for School Districts
The words “pooling” and “steam” in the title may conjure up images in your mind of hot springs and geysers but there’s something equally as exciting as these vacation destinations for school administrators right now: the chance to save millions in their district budgets.
When there is a way to free up district dollars currently directed to high premiums for healthcare insurance to instead be used for student learning while still providing excellent coverage for employees, it is easy to see why superintendents and local officials are eager to make that option available.
So that begs the question: should we as legislators not explore that option and consider a policy change in statute to allow it? Senate Education Committee Chair Tobin held a hearing last week on my bill, SB110, so committee members could do just that.
My previous and short article explained the rationale behind my bill: “Directing More Dollars to Classrooms with Funds Districts Already Have” but the hearing shed new light via support letters and testimony from those working daily in the field.
My UA Intern, Gaby Gozalez, and I presented the current cost per state employee for healthcare coverage under the AlaskaCare plan at approximately $20,000 per year. In comparison, Superintendent Dr. Randy Trani, estimated the Mat-Su Borough School District’s annual cost per district employee at a range of $28,000 to $30,000. Trani predicts his district would see a savings of $7 million ($5 million for the district and $2 million for employees) if they could participate in AlaskaCare.
Dr. Lisa Parady with the Alaska Association of School Administrators made the following point:
On behalf of the Alaska Council of School Administrators, we write in support of House Bill 21/Senate Bill 110, an act relating to an option for group insurance coverage and self-insurance coverage for school district and other public employees.
To keep student learning at the forefront of our priorities and to control escalating costs, the Alaska Council of School Administrators appreciates and supports the concept of an option for a statewide insurance plan.
From the Kenai Peninsula Borough School District, Superintendent Clayton Holland stated SB110 was a legislative priority this year.
The Kenai Peninsula Borough School District supports SB 110. Listed among KPBSD’s 2022-2023 legislative priorities include focus on retention and recruitment of high-quality educators by investing in defined benefits and exploring affordable health care for employees.
Thank you for sponsoring and bringing SB 110 forward. Having more health care options is a positive step for all school districts in Alaska.
Mayor Rodney Dial of the Ketchikan Borough shared that his school district is facing a $2 million shortfall between what was budgeted and actual expenses. He weighed in to support SB110:
SB 110 is a potential tool that could reduce healthcare expenses and mitigate future ones for our District. As this legislation is designed to be voluntary in nature, if it becomes law; there seems to be no downside to giving Alaskan communities the ability and choice to participate in AlaskaCare if beneficial to them.
I appreciate the efforts of the sponsor of this bill and encourage your support.
SB 110 is up for a second hearing on Wednesday, April 12, 2023 when we expect to hear from Kathy Leary, City Administrator of Gustavus and possibly Juneau Superintendent Dr. Bridget Weiss, both who attended the last hearing to testify in support of the legislation but did not get an opportunity.
