Board is looking to get better deal on health insurance
By Jennifer Eisenbart
Editor
After two failed motions and a fair amount of discussion Monday night, the Burlington Area School District School Board voted to have two different benefits consultants pitch their proposals to the board.
The current employee benefits consultant for the district is Hausmann-Johnson, which has helped the district realize millions in savings in benefits since Act 10 went into effect in 2011.
The district has since stopped using the WEA Trust for benefits, instead switching to various plans that required more out of pocket costs for employees but also cheaper costs for the district.
However, in an effort to evaluate costs, BASD Business Manager Ruth Schenning looked into other benefits consultants that could possibly save the district money. She presented them to the board last week.
The board seemed to be in agreement that M3 – which handles a number of different school districts and private clients – would be the best choice Monday evening after Schenning had clarified a number of questions with the various groups.
The Finance Committee met first Monday night to discuss the issue, with a motion to go with M3 passing 2-1.
However, when it came time to make a motion and vote in the full board meeting, School Board Member Phil Ketterhagen wanted to have M3 and Hausmann-Johnson bid out the district’s insurance situation and see who could offer the best deal.
However, Superintendent Peter Smet said that it was likely the two companies would not agree to that proposal, and Ketterhagen’s amendment was voted down 5-2.
When it came time to vote on M3, though, that motion was also voted down 4-3.
Finally, a motion was made to bring both companies in to make a presentation. That motion passed unanimously.
While much of Monday night’s discussion focused on the costs and the pros and cons of the various consultants, some members of the board also said Schenning should have some say since she would have to work with the companies.
Schenning, after saying there were benefits to all the groups, gave her nod to M3, but pointed out that she would work with whatever firm the board selected.
Board Member Todd Terry pointed out that, since Schenning had to do the work with the companies, “we owe her some deference.”
M3 drew mostly support from the board, but Ketterhagen did point out that M3 worked with the WEA Trust. In fact, 50 percent of school districts still use the WEA for their insurance.
“The WEA did this district no benefit,” Ketterhagen said.
But within the 220 schools the company works with, 11 percent use the Wisconsin Counties Association Group Health Trust. That is the same company that BASD currently contracts its employee benefits.
The insurance the district uses breaks down into three different options:
• An HSA option with a $3,000 individual deductible and a $6,000 family deductible, with 100 percent coverage in network and 70 percent out of network.
• The current HSA model with a $1,500 single/$3,000 family deductibles with the same coinsurance, but with monthly premium contributions of $45.60 single or $127.87 family.
• The current PPO plan, with a $250/$500 deductible, 100/70 co-insurance and various co-pay amounts. Monthly contributions from employees for this plan are $112.39 for single and $314.02 for family.
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