N.Y. State Comptroller: 'Rye Neck Union Free School District – Health Insurance Cost Savings'

ALBANY, New York, Feb. 28 -- The office of the New York State Comptroller issued the following audit report (No. 2022M-164) on Feb. 24, 2023, entitled "Rye Neck Union Free School District - Health Insurance Cost Savings."

Here are excerpts:

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Audit Objective

Determine whether Rye Neck Union Free School District (District) could achieve cost-savings by offering a health insurance buyout incentive (buyout).

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Key Findings

District officials (officials) could achieve cost-savings by offering a buyout in lieu of health insurance coverage.

Total savings could range between approximately $130,000 and $190,000 annually if the District offered family plan coverage buyouts of $4,500 or $6,000 and individual plan coverage buyouts of $2,000 or $2,500.

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Background

The District serves the City and the Town of Rye in Westchester County. The District is governed by an elected six-member Board of Education (Board) responsible for the general management and control of financial and educational affairs.

The Superintendent of Schools is responsible for the District's day-to-day management under the Board's direction. The Assistant Superintendent for Business and Finance (Assistant Superintendent) oversees the District's business operations, including health insurance coverage.

The District participates in the State-Wide Schools Cooperative Health Plan (SWSCHP). At the time of our audit, the District had not negotiated a health insurance buyout to offer to their employees.

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Key Recommendation

* Consider offering a buyout to help reduce costs.

District officials generally agreed with our recommendation and indicated they will consider our recommendation.

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The report is posted at: https://www.osc.state.ny.us/files/local-government/audits/2023/pdf/rye-neck-union-free-school-district-2022-164.pdf