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Butler school district picks new health insurance provider

BUTLER TWP — The Butler Area School District changed its insurance provider for employees at a special meeting Tuesday, but the district’s superintendent said there should not be much of a change for staff members.

Superintendent Brian White said the current insurance provider, Allegheny County Schools Health Insurance Consortium, projected a rate increase of up to 18%, which is “astronomical compared to historical rate increases.” It ended up settling on a rate increase of 14%, but White said the district found another option that had a smaller rate increase.

The board voted to terminate its membership in the Allegheny County Schools Health Insurance Consortium and become a member of the Midwestern Insurance Combine. White said the cost to join the consortium with the school district’s current needs is an estimated 7% increase.

“Their co-pays should be the same, their office cost should be the same, what’s taken out of their paychecks on their premium is based off gross salary calculations — none of that should change,” White said. “I really believe that based on what we’ve been told, we should see enhanced opportunities as far as what’s in the network.”

White said Midwestern Insurance Combine requires a district to be a member for three years, then the board can decide annually whether to stay. School board member Al Vavro also pointed out that there already are 18 school districts in the consortium, including Knoch School District, Seneca Valley School District and the Butler County Area Vocational-Technical School.

The consortium also has options the school district administrators plan to evaluate, White said. He added that the plan gives its members choices of Highmark and UPMC providers.

“You can customize some of your offerings and plans as time goes on,” he said. “Next year we’re going to do an analysis of the vision plan and the dental plan — we’ve had some employees express a frustration over a perceived lack of providers.”

School board solicitor Tom Breth said the change in health insurance provider probably will not be disruptive.

“The biggest issue is going to be the transition,” Breth said. “You’re remaining in the current consortium until June 30.”

White said employee contributions to the consortium will be the same, and the school district will be paying less than initially projected for health insurance now.

“This will go a long way (toward) helping us with our budget deficit,” White said. “Based on their rate projections, I think we’re making a good move.”

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