INCREASED HEALTH PLAN USE FORCES SCHOOL DISTRICT TO SWITCH

School district employees were using the health plan at a much higher rate than expected this past year, according to district officials, who said it forced them to switch back to the state-run plan in order to avoid a big premium hike.

"Costs have been driven higher by the fact that we are using at a rate of about 137%," Superintendent John Ramos said at a special meeting Monday. "Where as the insurance company would have anticipated an 85% or so usage."

The school board on Monday voted unanimously to switch from Horizon to the state plan after being advised the Horizon program would increase rates by 29% for 2017. The state plan increase will be only 15%, which has already been accounted for in the current budget. The vote was 7-0, with Board Member Stephanie Lawson-Muhammad absent and Board Member Johanna Wright abstaining because her daughter is a district employee.

The premium increase is based on an increase in use of the health plan, according to Business Administrator Paul Roth. He said Horizon reports that it had estimated spending 85 cents for every dollar taken in under the district's coverage, but instead spent $1.37 for every dollar taken in because of the increased use.

Superintendent John Ramos described them as cost increases that were "frankly unexpected" and "out of our control." He said usage had been at 85% in the past.

Board President Elizabeth Baker stressed that the health plan provisions will not change and employees will not see any reduction in service. It will take effect Feb. 1, 2017 because the district needs to give 90 days notice.

See their extended comments below: