St. Lawrence-Lewis Health Insurance Consortium remains in healthy financial position

The St. Lawrence-Lewis Health Insurance Consortium continues to remain in a healthy financial position, according to Massena Central School Superintendent Patrick H. Brady, who serves as the district's representative on the consortium.

"Our fund balance is in good shape. The plan is in good shape overall financially," he told board of education members.

Mr. Brady said the consortium met on Feb. 15 and set the health insurance rates for next year.

"The rate for the health insurance plan for next year is a 3% increase, and that increase is basically a break-even increase" he said. "The average increase nationally for health insurance is around 5.6%. As I said, we're at 3% and the plan continues to do quite well."

The consortium is also recommending a 0% increase for the worker's compensation plan next year.

Mr. Brady said the 3% increase in health insurance "is believed just to keep us even and keep our fund balance solid without really growing it so that when we are in difficult times, we'll have those funds to help offset larger increases."

He said they haven't seen anything out of the ordinary with the plan.

"The plan's performance has been right in line with what they expected this year," he said. "We did have an increase in the first quarter that leveled out in the second. But, so far, the number of claims and costs are running on what was generally expected and budgeted for this year."

He said the plan has benefited from an increase in interest rates.

"There's been an increase for revenue for interest, which we're also seeing in our budget with the interest rates where they are," he said.

Other cost-savings have been realized by moving Medicare-eligible members of the unit to a new Medicare Advantage plan that began Jan. 1.

"That's expected next year to be a savings of about $2.8 million," Mr. Brady said. "There has been some hiccups in the transition in that process, which we've been working through in conversations with some of our union leadership as well as the plan administrator."

He said that among the "hiccups" was that members who had a higher retirement pension were being charged more than they should have been, and those individuals will be reimbursed.

In addition, he said, "There was a mistake in changing some of the people that were on their own Medicare Part D plan to this plan. That was taken care of as well, but it caused some consternation from some of the membership. We will be working through it and we'll continue to work through it."

The plan is administered by Locey & Cahill LLC and includes several local school districts and the St. Lawrence-Lewis Board of Cooperative Educational Services. The Canton, Ogdensburg, Madrid-Waddington, Heuvelton and Morristown have elected not to participate in the consortium.