HEALTH INSURANCE Schools to keep consortium

The districts will remain in the consortium for six more months.
By LAURE CIOFFI
VINDICATOR NEW CASTLE BUREAU
MERCER, Pa. -- Two school districts looking to pull out of the Western Pennsylvania Health Care Consortium have decided to stay until Jan. 1.
Sharon and Reynolds school districts have agreed to remain in the consortium for six more months.
Both districts tried to pull out as of July 1 but were stopped by the consortium, which stated in its bylaws that any district must give six months' notice before pulling out. The districts gave notice in May.
School officials did not want to comment on the matter, but they referred to a written statement issued by attorneys.
The statement said Reynolds and Sharon employees and retirees will continue with consortium medical and prescription drug benefits but have the option to withdraw by Jan. 1.
Sought injunction
The consortium had been seeking an injunction in Mercer County Common Pleas Court preventing the districts from leaving.
The two groups settled their differences outside court after a hearing Tuesday, said Judge Francis J. Fornelli of common pleas court.
The consortium is a self-funding health insurance plan that covers 2,300 employees in 12 school systems. The member districts pay their insurance premiums to the consortium, which hires a third-party administrator to run the service.
Lack of faith
School officials in Sharon and Reynolds school districts have cited a lack of faith in the administration of the seven-year-old consortium and particular dissatisfaction with its performance during the current fiscal year.
The consortium experienced a cash-flow problem in late 2002 that resulted in its assessing its member schools a total of $4.6 million in extra fees in February.
cioffi@vindy.com