Schools to switch insurance carriers
Most of Flathead County’s public schools will have a new health insurance carrier next year, after a recent vote by a rural schools cooperative.
Northwest Montana Educational Service Agency members voted unanimously to purchase health insurance through Montana Schools Health and Welfare Plan, which is underwritten by Blue Cross Blue Shield of Montana.
For the last eight years, co-op members have been insured through the Montana Unified School Trust. The group began looking for other insurance options this spring after MUST quoted the co-op a 48 percent premium increase in 2010-11.
“We have appreciated the coverage with MUST in the past,” said Flathead County Superintendent of Schools Marcia Sheffels, whose office coordinates Northwest MESA. “But the feeling was, we couldn’t afford to stay with them.”
Because there are so many groups in Northwest MESA, Sheffels said she couldn’t compare their new insurance carrier’s cost with MUST.
Co-op members include Cayuse Prairie, Creston, Deer Park, Fair-Mont-Egan, Flathead Crossroads, Helena Flats, Kila, Olney-Bissell, Pleasant Valley, Smith Valley, Swan River, Trego and West Glacier schools and the Northwest Montana Educational Cooperative.
While the group’s overall savings are unclear, co-op members said switching to Montana Schools Health and Welfare Plan would result in big savings for their schools. The savings will come despite the cost of leaving MUST.
The trust is charging all its members an assessment fee of $480 per insured individual. If customers stay with the trust, they have two years to pay the fee. Those who switch carriers must pay their assessment fee in a lump sum before they leave the trust.
The trust is charging the assessment fee in an attempt to build up its reserves, which have dwindled by about 75 percent over the last three years. Claims have outstripped projections by millions of dollars since mid-2008, and the trust faces a shortfall of up to $4 million by this summer — all of which have led to significant rate hikes for its members.
At Cayuse Prairie School, the assessment fee is about a $9,000 payment — but district clerk Heather Mumby said switching carriers was worth the price.
“It will take us about three months on the new plan to make up our money, as opposed to staying with MUST,” she said.
The assessment fee will cost Swan River about $9,000 as well. Other schools’ fees range from about $2,400 at West Glacier to about $6,240 at Smith Valley.
Helena Flats will pay about $14,400. But with the difference in premiums, the district and its employees will save about $40,000 over the next year, district clerk Tonnie Decker said.
Co-op members will have three plan options through the Montana Schools Health and Welfare Plan, down from five with MUST, Sheffels said. The new plans take effect July 1.
Northwest MESA isn’t the only Flathead school group planning to leave the trust next year. An insurance committee at the Evergreen School District will recommend next week that the board switch to MSWHP, district clerk Donna Tiegs said.
The assessment fee from MUST will cost the district almost $50,000, but the committee’s research shows the
district will save if it changes carriers, she said. The trust quoted the district a 41 percent premium increase in 2010-11.
Savings haven’t yet been firmed up, however. The district will change plans when
it changes carriers, and those plans haven’t yet been selected. The district will have a better idea of savings after the recommendation goes before the school board and the teachers union, Tiegs said.
West Valley School is likewise switching to MSWHP, district clerk Cindy Foley said.
MUST had quoted the district a 43.5 percent premium increase in 2010-11. MSHWP’s premiums will be about a 25 percent increase over what the district and employees paid this year.
“That’s still a large figure, but it’s more palatable than 43 and a half percent,” Foley said.
What that means for employees isn’t yet certain; the district is in the middle of negotiations with its teachers union. It also depends on what MSWHP plans the district will offer, Foley said.
Some districts, including Marion and Somers-Lakeside, haven’t yet made an insurance decision. MUST quoted Marion a 30 percent premium hike, which led the district to shop around to see if it could find a better deal.
The district has heard from four carriers already, clerk Rae Mitchell said, but hasn’t yet made a decision. Their assessment fee from MUST is about $6,700.
Somers-Lakeside also went shopping after MUST quoted the district a 45 percent increase. The district will meet with the staff and have carriers give presentations, clerk Diane Fetterhoff said.
If the district chooses to leave MUST, Somers-Lakeside will have to pay the $36,800 assessment fee in a lump sum. That money would have to come out of the general fund, Fetterhoff said.
Reporter Kristi Albertson may be reached at 758-4438 or by e-mail at kalbertson@dailyinterlake.com.