For
years VEA has been fighting for a statewide insurance option for public school
employees. The Compensation and
Retirement Subcommittee of the House Appropriations Committee will be voting on
this issue (SB866 Chafin/Vogel) on Thursday afternoon. The bill came out of the Senate on a strong
bipartisan vote, but in years past it has been killed by this committee.
Why do we need this bill?
Moving to a statewide insurance option for local school divisions and local governments could save millions of dollars for the state, localities and employees in the years ahead. In addition, it would provide a high quality insurance option to small divisions that endure volatile rates and little bargaining leverage with insurance companies.
The Joint Legislative Audit and Review Commission
estimated that implementing such a plan for the school divisions alone would
save $44 to $66 million annually. These savings could be used to provide needed
school funding.
The Commonwealth would have much greater leverage in
rate negotiations with insurance providers than any one of the 132 individual
school divisions. Smaller localities
would benefit the most – benefiting from the increased bargaining leverage
(market power) and rate stability of a larger pool of employees. In addition, savings are achieved as administrative
and procurement costs are eliminated.
SB866 provides an option to local governments and
school boards. Participation is not
required under the provisions of the bill.
This plan offers a substantial “cooperative
procurement” opportunity to school divisions.
When JLARC last examined this issue in 2010, school divisions in
Virginia were spending $0.9 billion on health insurance. JLARC identified health insurance as the
“area of greatest potential savings” for school divisions. As health insurance is funded in part by the
Standards of Quality, any savings are to the benefit of the localities and the
state.
In 2010, JLARC
reported that, “At
least 25 states allow or require public school divisions to purchase health
insurance through a statewide pool. Some states pool public school employees
with all state employees and share the same experience ratings and premiums
between groups. Other states create separate pools with unique experience
ratings and premiums for school employees and state employees.”
Please call the offices of this subcommittee’s members and leave this simple message: “Please vote for SB866.”
Delegate Charles Poindexter (804)
698-1009 DelCPoindexter@house.virginia.gov
Delegate Riley Ingram (804) 698-1062 DelRIngram@house.virginia.gov
Delegate Scott Lingamfelter (804) 698-1031 DelSLingamfelter@house.virginia.gov
Delegate Tag Greason (804) 698-1032
DelTGreason@house.virginia.gov
Delegate Scott Garrett (804) 698-1023
DelSGarrett@house.virginia.gov
Delegate Johnny Joannou (804) 698-1079 DelJJoannou@house.virginia.gov
I have also included their email addresses in the event that
you would prefer to send an email message.
