County officials don’t often get involved in school budget decisions, but Schenectady County Attorney Christopher Gardner is proposing healthcare savings that districts don’t believe will make a significant dent.
Gardner reached out to the nine school districts within the county after proposed layoffs reached well into double digits at the majority of school districts, with Niskayuna Central School district proposing the largest cuts with more than 80 full-time equivalent positions on the chopping block.
Gardner is proposing school districts change to the Medicare Advantage Plan, which he roughly estimates could save each district $1 million annually. Some area school officials have voiced concerns the savings won’t be the big-ticket budget fix Gardner suggests.
Gardner gave a presentation on Monday, April 2, to the Schenectady County Legislature during a committee meeting. He estimated there were more than 250 proposed layoffs throughout the county’s schools.
“The more I investigated it the more it seemed they weren’t using the Medicare Advantage Plan and it could help (avoid) the trauma of some of the layoffs be anticipated,” he said. “Hopefully, maybe something can be done in the next month or two so they could meet their budget targets in another fashion.”
Schalmont and Mohonasen school districts are already using the Medicare Advantage Plan, but Gardner found Niskayuna and Scotia-Glenville school districts aren’t using it. The county is projected to save more than $3.8 million this year fully utilizing the plan.
School districts would have to negotiate the change of coverage with unions.
“The unions that the school districts have to deal with may not be totally familiar with it but I think they would be receptive once it is explained to them,” Gardner said. “It is just a matter of maximizing your dollars under the federal subsidies that are out there.”
Gardner said in the old wraparound plans Medicare is primary, paying 80 percent of hospital and medical costs, and then 20 percent is covered by the district’s regular medical plan along with prescription drug coverage. In the Medicare Advantage Plan he’s proposing, Medicare would cover everything.
“I think school districts want to do something like this, so it is just a matter of trying to get it implemented,” he said. “Whether or not they can do it this budget season would take some quick action but it is within the realm of possibility. If not, then hopefully it could help (avoid) further problems down the line.”
Robert Hanlon, spokesman for Scotia-Glenville, said the district is looking into possible savings that could be achieved through Gardner’s proposal. Hanlon estimated the savings would fall around $30,000, though, a far cry from what Gardner had estimated. Hanlon said he doesn’t know where the county attorney is getting the number.
“We pay lower rates already, but this is one thing we are looking at,” he said.
Scotia-Glenville is part of a healthcare consortium with nine other school districts, so Hanlon said the district is achieving saving through the mass purchasing arrangement.
“We are part of a healthcare consortium so we can’t go out and do something on our own,” Hanlon said. “Through the consortium, we are saving a lot of money on these things.”
If the district did move forward with the proposal, Hanlon said the savings would be included in the 2012-13 budget.
Niskayuna School District officials also disagreed with the estimated $1 million savings, but said it is looking into getting firm figures before moving forward.
“We appreciate Mr. Gardner’s time and insight in this area, but our community should know that the district’s self-funded plan is extremely efficient,” Niskayuna Superintendent Susan Salvaggio said in a prepared statement. “We have found that there are no easy solutions to controlling healthcare costs, but that we can achieve real savings over time by looking diligently at all options.”
In 2010, the districted moved to a self-funded system, which has resulted in $400,000 to $500,000 savings annually. The district also began to directly contract for prescription coverage this year, which is estimated to save $125,000 next school year.
School officials have reached out to the district’s health insurance advisors to conduct a full review of savings possible through Medicare Advantage.
“If we determine the change will save us money, we will negotiate with our employee groups,” Salvaggio said in a statement. “First we have to have actual data that indicates a potential savings.”
