Savings expected with new health plan

Howland school employees had $2.8 million in health claims this past year.
By TIM YOVICH
VINDICATOR TRUMBULL STAFF
HOWLAND -- Howland schools will save an estimated $616,000 in health insurance costs during the next year, a school official says.
District Treasurer Thomas Krispinsky said that the savings are the result of 18 months of work by the district's insurance committee.
The committee is comprised of representatives of the district's two unions -- Howland Classroom Teachers Association and Ohio Association of Public School Employees -- and Lori Kuszmaul, board chairwoman.
Two plans available
Now, employees will be offered two health-care plans.
Krispinsky explained that the district had $2.8 million in claims during the past year. The district has been self-insured for the 12-month period ending Friday.
Because it has a preferred provider organization (PPO) plan this year through Benefit Services, the district received a 28 percent discount, or a savings of $784,000, through the past year ending Friday.
After receiving various proposals from insurance carriers for the year beginning Saturday, the district contracted with Anthem Blue Cross-Blue Shield beginning Saturday.
The district, the treasurer said, will receive a 50 percent discount of the total charge of an employee's claim or a savings of an estimated $616,000.
Currently, single employees don't contribute to their health plan, and the family plan costs $83 per month.
Beginning Saturday, those with single coverage will pay $82 a month, and those with the family plan will pay $205 per month. The employees in this plan don't have a co-pay for physician office visits and pay a lower price for prescriptions, Krispinsky said.
Employees can decide to remain in the self-insured plan; the trade-off is that they will have a co-pay for office visits and a higher charge for prescriptions, Krispinsky added.
yovich@vindy.com