Thursday, April 25, 2013

Schools struggle with additional state funding cuts


The same schools in southern Maine hit by Gov. Paul LePage's proposal to take on the cost of teachers' pensions are now expected to pay a larger percentage of staff health insurance — another example, some officials say, of the so-called property rich "gold coast" taking on a greater share of the state's financial burden.

The Maine Education Association Benefits Trust (MEABT), the organization that negotiates with Anthem on behalf of its estimated 68,000 members from Kittery to Fort Kent, formerly spread health insurance increases equally across school districts, according to Jim Amoroso, director of finance and operations for the York School District.

This year, the MEABT created a tiered rate system as an incentive to keep school districts that have fewer claims — generally the smaller districts — from going to another insurer. The new plan gives schools with fewer claims, or above-average "risk experience," a rate increase of up to 6 percent.
Those with a below-average risk experience, including York and school districts for South Berwick, Eliot, Wells, Ogunquit, Kennebunk, Kennebunkport and Arundel, are being charged the top rate increase of 13 percent. All of the districts had budgeted health insurance increases at 6 to 7 percent, resulting in more than $200,000 in last-minute added costs when school budgets have been or are about to be finalized.

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