Neenah schools save $600,000 with insurance buyout [The Post-Crescent, Appleton, Wis.]

Jan. 18--NEENAH -- The Neenah Joint School District reduced its expenditures by $600,000 for the 2011-12 school year by offering its employees a voluntary health insurance buyout.

The savings effectively eliminated a $500,000 structural deficit in the school budget.

"At this time it looks like we will have a balanced budget and even a small surplus," said Paul Hauffe, director of business services.

The Board of Education adjusted the 2011-12 budget Tuesday to reflect the change.

In July, the district offered a $2,000 payment to employees and retirees who have access to other health insurance if they opted out of the district's health and dental insurance. A family plan costs nearly $19,000, so the district could save as much as $17,000 for each employee who took the offer.

Hauffe said 46 employees and retirees relinquished Neenah's insurance for the cash, yielding the $600,000 savings.

The savings was prorated according to when an employee opted out of the insurance. The district had enrollment windows at the beginning of the school year and again in December.

The number of employees opting for the cash surprised board members.

"When I read 46, I was shocked that it was that many," board president Scott Thompson said. "I expected a handful."

Another 37 employees opted to enroll in a high-deductible health plan with a health savings account. That reduced the district's costs by another $50,000.

Board member Christopher Kunz said he voted against the 2011-12 budget in October because it tapped $500,000 in cash reserves to pay for recurring expenses. He said the savings from the insurance buyout should have been disclosed earlier in the budget process.

"Some large portion of this had to happen at the beginning of the school year," Kunz said.

Hauffe said 35 of the 46 employees opted out early in the process. He said rather than make multiple budget adjustments, administrators waited until the December enrollment ended before totaling the savings.

District Administrator Mary Pfeiffer thanked employees who made the switch in health insurance and saved the district hundreds of thousands of dollars.

"Let's celebrate our staff on this one," she said.

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