Hays USD 489 considers switching insurance provider

By CRISTINA JANNEY

Hays Post

The Hays USD 489 is considering changing its insurance provider, which could save the district hundreds of thousands of dollars.

The school board discussed a possible change to Aetna insurance at its meeting Monday.

The district has been studying a possible change from the state’s program, which is through Blue Cross Blue Shield, after two years of large premium increases. Last year the cost of the district’s insurance increased by $600,000, and this year the cost went up $400,000.

The district would have to pay a penalty estimated between $100,000 and $200,000 to leave the state plan. However, the district estimates the savings would be as much or more than the cost of the penalty. Aetna has figured in at least $200,000 in saving for the first year to offset the penalty.

The district has no guarantee Aetna will not increase its premium next year, but superintendent John Thissen said leaving the state will give the district more flexibility in the future. The state does not provide premium histories, which most companies require to provide bids. Thissen added the districts that have left the state system have seen lower percentage increases than lose that have stayed in the state system.

“I do believe it is inevitable …” Thissen said. “I understand and there are individuals who have concerns about Blue Cross Blue Shield. I am one of them. I have never had anything, but Blue Cross Blue Shield. But from a business standpoint and what we trying to get out of, we need to try to get out of the handcuffs that are tying us from the flexibility to make choices.”

The district has tried to create plans that mirror the current Blue Cross Blue Shield plans as closely as possible. The Aetna plans would have higher deductibles but lower overall out-of-pocket expenses.

Lance Bickle, board president, noted district employees should not lose any choice. Aetna covers about 96 of the providers in the area.

The district conducted six meetings with staff, and 300 people responded to a survey on their health care coverage.

Board member Luke Oborny said he thought now was the time to make the change.

“I am to the point we are not going to make everyone happy,” he said. “I am a majority guy. You are never going to make everyone happy. The majority of people are for this. This is good financial decision for the district. This sets us up for the future to have a lot more options. I am for it.”

The district can make the switch in time for the new year, but they need to act quickly. The board will meet for a special meeting in the next couple of weeks to vote on the insurance proposal and hear presentations from four candidates for a vacant board seat.

The board will allow each board candidate to speak for five minutes, and then the board members will ask the candidates questions.