Region One strikes deal for lower premiums

FALLS VILLAGE — The insurance premium increase for the Region One School District is likely to drop from an anticipated 8.23 percent rise to a more manageable 1.68 percent. This significant decrease will impact taxes in all six towns of the school district.

Region One School District Business Manager Sam Herrick reported on the ongoing negotiations at the regular monthly meeting of the Region One Board of Education on Monday, May 3.

Herrick gave a quick recap of the insurance picture, which has been front and center in education budgets in all the towns. He said that Anthem’s initial renewal offer called for a 14.91 percent increase — including a 35.2-percent increase in the high deductible plan.

As talks continued, Anthem came down to 8.23 percent overall (and 15.5 percent for the high deductible plan).

Enter Aetna, with a tentative across-the-board offer that includes an increase of 1.68 percent.

Herrick said the company is anxious to get into the public sector.

“We’ll be the first six towns for them,†he explained. “They want to make us their flagship. They have the incentive to make us happy customers.â€

There are still some details to be worked out, Herrick added, but “we are confident we’re getting equal coverage, or better [with Aetna], and the savings are significant.â€

Herrick said the Anthem and Aetna plans are virtually identical, but cautioned that there would inevitably be some difficulties in the transition.

But in terms of three criteria — providers, plan design and access to insurance — the Aetna offer is “substantially equivalent or better in aggregate.â€

Negotiations with the insurance companies were carried out largely by a consulting firm called KONA that was hired this year by the school board.

In terms of the high school budget, which was voted on at referendum Tuesday, May 4 (before The Lakeville Journal went to press; look for results online at tcextra.com), Herrick’s rough guess was that the switch would result in savings of about $100,000 to the district.

Some of that money would go to employees directly, in the form of a lower contribution. The remainder would be returned to the towns in April 2012.

Herrick said that Aetna’s proposal includes safeguards against unreasonable increases once the company has secured the Region One contract. “There are caps on what they can charge for things, other than claims. It’s pretty unheard-of.â€

Region One Board Chairman Judge Manning added, “They also told us their start-up costs are so high that they want to keep us†for several years.

The Region One contract is complicated, with 26 separate groups — including teachers, town employees, union and nonunion groups — within the buying group.

The board voted to ask the buying group to continue with negotiations with Aetna, with authority to make the change.