BY MATT LINDSEY

North Country This Week

CANTON – Canton Central School will save about $1.4 million this year, and expects to save around $8 million over the next seven years after switching health insurance providers Sept. 1.

CCS Superintendent Ron Burke says the district switched from St. Lawrence-Lewis BOCES Consortium insurance, which is owned by St. Lawrence County school districts and BOCES, to Foy Benefits from Watertown. Ogdensburg Free Academy is the only other school in St. Lawrence County to have made the same change.

Burke said the actual insurance coverage for those not Medicare eligible is Excellus Blue Cross/Blue Shield for medical insurance. For Medicare eligible retirees, the Part B coverage is provided by The Hartford.

The move from the SLL Consortium, which Burke believes began in the 1980s, will save money for the foreseeable future, he said.

The school has earmarked at least some of its savings from the insurance switch to build up a capital reserve fund, which it currently does not have. CCS is planning a capital project with detailed information to be rolled out early next year.

St. Lawrence-Lewis BOCES has handled the claims administration for the health insurance consortium for over 30 years.

The consortium will be transitioning the claims processing or third party administrator function over to Excellus BCBS effective Jan. 1, according to Thomas Burns, St. Lawrence-Lewis BOCES superintendent. “The actual plan of benefits and the consortium will remain exactly as is, only the claims processing function is changing.”

Burns is cautioning districts considering a similar move to monitor Canton and Ogdensburg’s experiences closely and not make a short-term decision until the rates over the three years can be examined.

BOCES Urges Caution

The consortium board of directors approved Canton’s departure in June, Burns said. “Superintendent of Schools Ron Burke repeatedly stated that the reason was not dissatisfaction with the current plan or level of benefits, but that Canton continues to struggle with annual budgets, maintaining staff and program and it appeared to Ron that the next two years looked especially difficult,” Burns said

Canton opted to go with a quote from the Foy Benefits.

“Unfortunately, the Foy agency issued quotes that the New York State Department of Financial Services later determined to be prohibited due to the fact that they were multi-year rate quotes, which is not allowed under NYS Insurance Law,” Burns said.

He said this is no fault of Canton Central.

“They will still achieve savings that were promised in year one ... however, this will need to be monitored over at least 3 years to determine the true cost and level of benefits as Canton employees utilize the new Excellus product and then assume community rates in years two and three that are approved by the NYS Division of Financial Services,” Burns said.

Burke believes that based on his projections, the district will still see savings years down the road. He took possible increases from the Foy insurance and compared them against minimal increases from the consortium and believes savings will be realized.

BOCES Superintendent Burns is not sold on that notion.

“I would expect those rates to equalize over three years and be in line with actual regional healthcare costs, rather than what the Foy group originally quoted,” he said.

In the meantime, all of the SLL component school superintendents have approved a consultant study of regional health insurance that should be wrapped up by the end of this calendar year.

Burns said the study should yield “good information” about comparative regional costs and plans. Local school districts can assess that study, Burns said, “as well as to learn from the experience of Canton and OFA who have left the consortium to work with the Foy agency and an Excellus plan.”

Pros and Cons

The district hired a third party to evaluate the plans and list pros and cons of each.

“ENV Insurance serves as our independent, third party consultant,” Burke said. “ENV staff provided detailed analysis of the health insurance options in comparison with our former carrier. ENV also provides continued monitoring of our plan benefits and expenses.”

To switch insurance companies, the school needed six different units to approve it. The change was “overwhelmingly supported” by teachers, administration, transportation, secretaries, custodial and food service employees, Burke said.

Burke called the change a “strong win for the district and employees.” The school has about 300 employees who now receive insurance through the school.

For the most part, the policies are comparable, with co-pays and medications being in the same ballpark for staff.

There were a “few hiccups” in the first couple weeks, Burke said.

Some employees ran into prescriptions not being covered, but it was resolved shortly and ended satisfactorily for staff, he said.

“Foy worked to resolve the issues,” Burke said.

Foy Benefits has an office in the district and a representative visits Canton each Thursday to answer any questions or concerns from staff, or retirees. They also have a computer system and phone line for members to use as well.

BOCES Superintendent Burns said one thing is certain, “health insurance premium rates and costs will continue to increase to provide benefits to not just active employees but the burgeoning number of retirees as the majority of baby boomers exit the profession. This is not just a local but a regional, state and national problem that has so far has stymied both the public and policy makers who have sought relief.”