GUILDERLAND — The school board is examining health-care benefits for district employees, which this year cost $8.2 million or 10.8 percent of the district’s $76 million budget.

The cost has about doubled from the $4.1 million the district paid five years ago; in 2000-01, health insurance accounted for 7 percent of a $59 million budget, and costs have been rising steadily since.

At last Tuesday’s board meeting, Superintendent Gregory Aidala said the topic will be on the board’s agenda before Jan. 1 and the start of the budget-building process for next year.
"We’re keeping it on the front burner," he said.

Board member Peter Golden raised the topic at the September board meeting, and the superintendent subsequently presented the board with a report on the district’s health-insurance benefits.
Golden said there are "a whole host of things" the board should look at to "get a handle on what we’re facing."

He recommended, for example, looking a numbers of employees close to retirement and numbers of retirees using health insurance.
Board member Barbara Fraterrigo commented, "I never really realized once a retiree dies, his spouse continues with the insurance."
Golden also asked, "Do we have any compliance plans in place"" He said most major corporations use such plans and they are effective in reducing costs.
"I certainly get uncomfortable with the notion of us looking at compliance," responded board Vice President Linda Bakst. "If the insurance company isn’t doing that, I have no interest in looking at if our staff is taking their insulin or blood-pressure medication. I don’t want to go down that road."
"I don’t know that it’s an invasion of privacy," said Golden.

Board member Richard Weisz said he’d like to see what other school districts provide.
And board President Gene Danese said, "I don’t think information ever hurts."

An overview

Aidala’s 20-page report provides an overview of employees’ health-care plans at Guilderland, with comparisons to other local districts.
"It is fair to say that Guilderland offers a health-insurance benefit to its employees that is comparable to those offered by other area schools," the report states. "The benefit package is a means to attract and maintain employees of the highest caliber in a very competitive marketplace within Albany County."

Unlike like most districts, Guilderland does not negotiate health benefits during the collective-bargaining process with labor unions.
"Often, health insurance is a contentious issue and prevents many contracts from settling without protracted and difficult negotiations," the report says. "Also, there can be a disparity in benefits among employees if benefit changes are agreed to with only one bargaining unit at a time."

Instead, Guilderland, for more than 35 years, has had a District Health Insurance Committee, which includes representatives from each of its 12 bargaining units.

Over the past two years, changes made by the committee — for example increasing co-pays from $10 to $20 — have saved the district about $800,000 annually, the report says.

Guilderland offers health insurance — covering medical, dental, and prescription drug costs — to hourly employees who work at least 20 hours a week and to salaried employees who work half-time or more.

Retirees can continue the district’s group health insurance plan if they have worked for the district for at least 10 years. Most the bargaining units offer benefits for surviving spouses.

Although workers are eligible for coverage, participation is optional and the district does not offer buy-outs for workers who choose not to use the benefit.

The district currently offers four plans:

— Capital District Physicians Health Plan, a health-maintenance organization, which files for rate increases with the state, is used by 59 percent of Guilderland employees;

— Blue Shield Preferred Provider Organization, an experience-rated plan, meaning that premium rate increases are influenced by the cost of claims incurred, is used by 22 percent;

— Blue Shield Health Plus, another experienced-rated plan, is used by 12 percent; and

— MVP, a health-maintenance organization plan, is used by 7 percent.

Seventy-eight percent of retirees use Blue Shield Preferred Provider Organization; it is the only plan offered with nationwide coverage.

In 1996, Guilderland joined the Capital Area Schools Health Consortium, which currently has 15 members.

Most of the Suburban Council districts, like Guilderland, offer a choice of health-plan options, with both health-maintenance organizations and experience-rated plans.

For active employees, the report says, area school district percentage contributions range from 67 percent, for new employees only, to 100 percent, with most districts contributing 90 percent or more.

Guilderland, since the early 1980’s, has paid just 80 percent of health coverage, the report says.

A chart of 12 local school districts shows Guilderland below the middle in terms of percentage of its school budget devoted to health insurance — at 10.8 percent. Seven schools are higher and four are lower.

The districts with the highest percentages are Ballston Spa at 14.5 percent and Voorheesville at 13.3 percent. Those with the lowest percentages are North Colonie at 8.7 percent and Niskayuna at 9 percent.
The report concludes, "The district is experiencing large premium increases as are other employers throughout the country. The cost of maintaining the high quality of health care in this country, coupled with very expensive drugs and extended life spans of former employees, has led to the sharp rise in health-care costs."
Guilderland has made changes to help control costs, the report says. This includes shifting from indemnity plans (major medical plans that allow unrestricted access to doctors and nationwide coverage) to provider networks where rates for services are negotiated. It also includes increasing co-pays and "placing more stringent limits on services," the report says.
"These efforts, in cooperation with employee representatives, have resulted in significant cost savings of approximately $1.2 million over the last two years," the report says. "As part of our discussion and analysis, members of the District Health Insurance Committee clearly recognize that cost-saving measures must be addressed now and in the future given the rate increases experienced over the past several years."