How insurance pooling could help public schools

There has been a lot of talk and misinformation about a bill that would require the state’s public school employees to pool with state employees for health insurance benefits. I want to address some concerns and also inform the public about the bill’s intention and effects.

The impetus of House Bill 196 was at the request of the five largest school districts in our state for the purpose of health insurance benefits cost containment. Currently, almost $300 million in public funds are spent on health care and these costs keep soaring. A big portion of these funds comes from the Base Student Allocation, a formula used by the state to fund public schools.

With 53 of Alaska’s school districts having their own health insurance plans — some through the NEA Health Trust, some self-insured, some with multiple plans and some with local pools — this bill also seeks to consolidate and contain costs in a much-fractured system. It will also unburden school districts from this task so they can concentrate on doing what they are supposed to do: educate children.

Some detractors claim that this is a takeover of health care or that benefits for employees will be eliminated. Nothing could be farther from the truth. The state of Alaska is already footing most of these costs for public school employees through the BSA. In addition, the state inherits all school district employees who qualify for retirement health benefits, and that’s in addition to active state employees. The Alaska Care Plan has options that, once customized, would make it similar in benefits to what many of the school districts offer. Local school districts and employee unions will still be able to negotiate the level of contribution benefits employees receive through their respective bargaining process.

This issue is not uncharted territory. According to the National Council of State Legislators, more than 40 states pool with local public employees and at least 19 with school district employees. Research has shown that there can be considerable savings. In the Mat-Su, the district is spending more than $30 million in health insurance benefits. More than 70 percent of these funds come from the BSA and the rest is from local taxes and federal funding.

Recently, during a public hearing on HB196, the Mat-Su Borough School District indicated that savings by pooling and using one of the State Alaska Care options with similar benefits to employees could save the district between $2.5 million and $5.5 million. Cost savings on these benefits could mean more teaching positions, smaller class sizes and more resources for the schools.

Having been a school board member in the Mat-Su Borough and having heard from members of our community that they would like smaller class sizes, more educational programs and to justify increases in the public education funds, saving on health insurance premiums could really make a difference while making sure that we provide our educators with the benefits they deserve. It is also the intent to work with private industry to make sure that we get the best bang for our buck.

During the interim, I will be leading a task force on sustainable education to look at school funding. The purpose of the task force is to examine the efficiency and effectiveness, purpose, accountability and sustainability of public education funding — what has worked, what hasn’t worked and what needs to happen to make it all come together. It is also my intent to examine the methods of delivery, both traditional and non-traditional forms of education. I look forward to hearing from members of the community and the state on this endeavor.

Rep. Lynn Gattis represents the greater Wasilla area in District 9. She was elected to the state House in November 2011 during her first term on the Mat-Su Borough School District Board of Education. She is a lifelong Alaska and has lived in the Mat-Su for almost 30 years.