HOME LEADERSHIP REPRESENTATIVES NEWS RADIO CONTACT US

Rep. Sarty: Defeat of School Self-Insurance Option a Major Blow to Struggling Sector

AUGUSTA – State Rep. Ralph Sarty says the rejection of his proposal to let school districts self-insure is another blow to a sector of the state already deeply stressed by budget cuts. The proposal would also have offered teachers a range of insurance coverage options with a variety of premiums.

“School superintendents have told me how disappointed they are that this proposal failed,” said Rep. Sarty (R-Denmark). “They had high hopes that this commonsense idea would help them preserve programs and positions for teachers. It is a major blow.”

On Feb. 25th, legislative leaders from the majority party killed any chance for Rep. Sarty’s proposal, “An Act to Allow School Districts and Municipalities the Option to Seek Less Expensive Health Insurance Alternatives.”

All four Republican leaders on the Legislative Council voted to let the proposal proceed to the full legislative process. “We wanted to get the bill into committee and really analyze the potential savings,” said Rep. Josh Tardy (R-Newport), leader of the House Republicans. “Schools are facing huge budget cuts next year, and we’re trying to do anything we can to help out. This bill could have saved them some money and possibly some teaching jobs.”

All six Democratic members of the Legislative Council voted to block the proposal from moving into the Legislature.

School systems currently purchase Anthem health insurance through the Maine Education Association (MEA) – the teachers’ union. The Sarty proposal would have allowed school districts to self-insure individually or team up with other districts and municipalities and self-insure as a group.

“This proposal did not mandate anything,” said Rep. Sarty. “It simply gave school districts an option to find less costly insurance and more choices in coverage. Schools are facing a $92 million cut next year. After the stimulus money disappears in December, they face flat funding in the next budget. It’s going to be very rough. This was a tool they could have used to reduce overhead expenses.”

The Sarty proposal consisted of three components. It would have required MEA and Anthem to release to any school district the health insurance database of that unit upon request. It would have added language to Maine law to allow a school board the option to consider group self-insured health care and to join with other units and municipalities. Finally, it would have offered a choice of optional plans with a variety of benefit levels and premiums, similar to the five different coverage options in the plan by the Maine Municipal Association.

“As a legislator, you win some and you lose some – that comes with the turf,” Rep. Sarty said. “But in a time of serious economic stress, you expect a sensible idea like this to succeed. Unfortunately for those teachers whose jobs are on the line, the MEA and Anthem fought hard against this bill. You can’t escape the suspicion that, with elections coming up, the Democrats carried the water for a group that consistently votes them back into power – the teachers’ union.”

Rep. Sarty plans to introduce the same proposal next year if he wins reelection. “This is too good an idea to die a quick death and disappear forever,” he said.

###