HOME LEADERSHIP REPRESENTATIVES NEWS RADIO CONTACT US

Rep. Sarty Details Proposal to Let School Districts Self-insure

AUGUSTA – State Rep. Ralph Sarty will submit legislation next week to give school districts and municipalities the flexibility to self-insure to potentially save money during a period of deep cuts in state funding for education and revenue sharing.

Rep. Sarty’s proposal – “An Act to Allow School Districts and Municipalities the Option to Seek Less Expensive Health Insurance Alternatives” – will be heard by the Legislative Council at its upcoming meeting on Feb. 25. The Council consists of 10 legislative leaders – six Democrats and four Republicans. At least six votes will be required to move the bill forward for consideration by the appropriate committee and the full Legislature.

“I’ve spoken with nearly 20 school superintendents, and they are all intrigued by this idea,” said Rep. Sarty (R-Denmark). “They are keenly aware that the state’s General Purpose Aid for local schools will drop by $92 million next year and is expected to remain at that level for the following biennium. Health insurance for teachers is costly, and superintendents are very interested in the idea of saving money by self-insuring. They see it as a way of preserving positions for teachers.”

Rep. Sarty’s proposal consists of three key provisions. First, it would require the Maine Education Association (MEA) and Anthem to release, upon request, any school district or Regional School Union the health care insurance data of that unit.

Second, it would add language to Title 20-A Sec. 1001 to allow a school board the option to consider group self-insurance and to join with other school units or municipalities if practical in considering such an option.

Third, it would provide for optional plans which could vary in regard to benefits. The Maine Municipal Association plan, for example, offers five different choices with varying benefits and premium costs.

“School administrators are asking for options and are not satisfied that the current one-contract arrangement through MEA and Anthem is competitive enough,” Rep. Sarty said. “Many of them believe they could get more reasonable rates, as well as an expanded range of option, by self-insuring.

“At the very least,” he added, “they want the flexibility to explore the possibility of saving money. This bill does not require school districts to do anything. It simply gives them the freedom to look for savings during a time of extreme financial pressure.”

###