Incorporated in budget
GCSD to save $300K through health-insurance changes



GUILDERLAND — Changes in health insurance for school-district employees, to save the district an estimated $300,000, were incorporated in the budget proposal for next year, and approved by the school board when it adopted the $82 million plan last week.

At last Tuesday’s school-board meeting, Assistant Superintendent for Business Neil Sanders went over four recommendations made by the district’s health-insurance committee. The board did not discuss the recommendations. But, by accepting the committee’s report and then by adopting the budget, those recommendations were approved, said Assistant Superintendent for Human Resources Susan Tangorre this week.

Both Sanders and Tangorre sit on the committee, which also includes representatives from each of the district’s 12 bargaining units. Guilderland, unlike most districts, does not negotiate health benefits during the collective-bargaining process with labor unions, but, rather, has a district health-insurance committee to make recommendations.

Sanders began by going over the estimated rate changes. The district has four different health-insurance plans, covering medical, dental, and prescription drug costs.

Most Guilderland workers, about 59 percent, as of 2006, used CDPHP, a health-maintenance organization, while 22 percent use Blue Shield PPO; 12 percent use Blue Shield Health Plan, another experienced-rated plan; and 7 percent use MVP, another health-maintenance organization.

Guilderland workers pay for 20 percent of their health-insurance costs, while the district pays for the remaining 80 percent.
"There are no changes in terms of the percentage paid for employer contributions," said Tangorre this week.

Estimates on rate renewal increases are: 3.5 percent for Blue Shield PPO, 9.6 percent for Blue Shield Point of Service, 12.6 percent for CDPHP health-maintenance organization, and 7.9 percent for MVP health maintenance organization.
The committee, said Sanders, used a report by consultants it hired, UHY Advisors, as "a guiding document" in formulating its recommendations.

The district estimates it will save $85,000, Sanders said, by changing prescription drug coverage.
"Under Express Scripts," said Tangorre, "we had a rider that said, if you order 100 units of medication from a pharmacy, you only made one co-pay. It was rolled over for many years. Today, that usually equals three co-pays, since most pharmacies dispense 30 units" for a single co-pay, she said. The district will "ease in" to the change, she said, so employees will be making two co-pays for 100 units of medication.

The co-pay for generic drugs is $5, for brand-name drugs is $10, and for non-formulary drugs is $25, she said. (A formulary is an insurance company’s list of preferred generic and brand-name drugs; a non-formulary drug is a medication that has a preferred alternative listed by the company.)

Second, the committee recommended, for a savings estimated at $85,000, continuing with CanaRx, a Canadian prescription drug plan started this school year.
"It provides brand-name drugs for routine maintenance for things like high blood pressure or diabetes," said Tangorre this week. "There is no co-pay for the employee but it’s a much lower rate for us to reimburse."
The program is mail-order only, Tangorre said. "We’re hoping a larger percentage will use it," she said.
Currently, about 15 percent of Guilderland employees use CanaRx, said Tangorre. Pointing out that many people don’t need maintenance drugs, Tangorre said, "Usually, about 33 percent is the most of any population that would use it"We’re almost half-way there."

Third, the committee recommended using drug step-therapy programs to encourage the use of generic drugs, for an estimated savings of $130,000.
"That’s a conservative estimate," said Tangorre. The program requires that a doctor first prescribe a generic drug "to see if it’s effective," said Tangorre. "People have a bias towards advertised drugs," she said. "Nothing now says a brand-name drug is better. We certainly know generic drugs are cheaper. Everyone then would have the ability to go to a brand-name drug, in consultation with their physician," she said, if the generic drugs weren’t effective.

Fourth, said Sanders, offering a Medicare choice plan for HMO retirees over the age of 65 is being explored.
"The government is trying to get out of the Medicare business," he said. This would be a voluntary option, Sanders said; no one would be required to switch.

Other business

In other business at its April 3 meeting, the school board:

— Watched a video produced by Nicholas Viscio, the district’s media specialist, on programs to ease the transition from middle school to high school. (The Enterprise covered the programs earlier; to read the story on-line, go to www.altamontenterprise.com, then go to "Archives" under Sept. 21, 2006, and look under "Guilderland";
— Heard from board member Colleen O’Connell that the high school PTSA silent auction has "a great turnout" and preliminary figures show that over $13,000 was raised; and

— Met in executive session to discuss a student issue.