Health insurance costs could rise 22-plus percent

FALLS VILLAGE — Health insurance for Region One employees will go up 22.9 percent for the 2014-15 budget year, according to Region One School District Business Manager Sam Herrick.In a written statement sent out Monday, Feb. 3, Herrick noted that in the last year Region One experienced “the highest level of claims in over 20 years.”In 2013, 13 claims were higher than $100,000 (four were more than $200,000), compared to four claims higher than $100,000 in 2012.Herrick has been conferring regularly with Kona HR, the school district’s insurance brokers, over the last few months, and told the Region One Board of Education that he had been hopeful that the claims for November 2013 would be lower and thus put the district in a better position for negotiating.“Unfortunately, the month of November was the worst month of claims that we have had in recent history.”Herrick said that the initial renewal figure from Aetna’s underwriters was a staggering 46.1 percent, a figure that Kona HR confirmed as legitimate.After discussions, Aetna agreed to lower that figure significantly, to 22.9 percent.In the meantime, Kona HR went out to bid with other carriers, but those proposals were between 30 and 35 percent higher than the current rates and did not include the October and November claims.So the district has locked in at the 22.9 percent figure. Herrick has consistently warned the renewal figure would be 20 percent at a minimum, and likely more, during budget discussions.The Region One school board meeting and the budget workshop scheduled for Monday, Feb. 3, were canceled because of snow. The board held a budget workshop Tuesday, Jan. 28. The bottom line of the current draft budget for 2014-15 is $16,314,518, an increase of $1,312,035, or 8.75 percent.However, at the Jan. 28 workshop savings were discussed in the areas of science lab tables, football locker room improvements and exterior lighting, which would amount to a savings of up to $172,500. No action was taken at that meeting.The next scheduled budget workshop meeting is Wednesday, Feb. 19, but the canceled regular board meeting and workshop will be rescheduled before that date.