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- SPECIAL UPDATE on the Hay
Group Report
- November
25,
2003
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- Prepared by PHILLIPS ASSOCIATES
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- PAHU
SUBMITS COMMENTS ON SCHOOL DISTRICT EMPLOYEE BENEFITS BEING
SUBSUMED INTO A STATE-RUN PLAN
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- House
Resolution 159 directed the Legislative Budget and Finance
Committee to undertake a study as to whether or not school
district benefit programs should be combined into a state-run
benefit program. Philadelphia’s
Hay Group was contracted to do the study.
The Hay Group is required to issue a feasibility study by
the end of 2003. As
part of their analysis, they worked with the PA Association of
School Business Officers (PASBO) to survey the school districts as to what
health, vision, and dental benefits were being offered now.
This research will be included in their final report.
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- The
Hay Group also met with PAHU at our request.
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- Options
the Hay Group is considering are:
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- ·
Leave
the current system as is
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Form
a statewide bargaining pool for school systems
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Cover
all employees and school system retirees into a single statewide
plan separate from the PA Employees Benefits Trust Fund that
covers Commonwealth employees and retirees.
- ·
Expand
the PA Employees Benefits Trust Fund to include employees and
retirees of school systems.
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- Following
is a synopsis of PAHU’s comments to the Hay Group:
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- PAHU
Believes that health care plans should remain under the control of
local school districts. The local school districts and the underwriters who serve
those plans best understand the health care needs and costs at the
local level. The
underwriters act as school employee advocates who assist school
districts in navigating the insurance system.
Many insurance producers also work with the school
districts to meet their specific needs in all lines of insurance.
This means that the school district also has an advocate in
assessing the overall insurance requirements of the school
district as well as being able to focus on health. That important
function would be diminished in a state controlled plan.
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- A
state-wide system would be another unfunded mandate that would
have to be supported by the school district budget.
School districts would lose their ability to adapt benefit
programs to their particular need and budget.
In addition, political pressure to the state level would
have the effect of raising school employee benefits to a higher
standard, thus imposing a higher cost on those school districts
that can least afford it.
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- 11/25/03
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