Sanders had no explanation for the rising costs, which continue to exceed actuarial projections. The district is not big enough to fund an insurance plan to cover sudden spikes in costs when a group of employees fall critically ill, he said. Sanders' statement acknowledged the board's dismal foray into self-insured health plans. Praised as a way to improve service and save money, the plan has consistently lost money since the start. Administrators have gone back to employees twice to ask for more money.
Current claims are more than double that figure.
When HIP was the private carrier, employees and doctors complained about the private insurance company, its lack of timely payments to doctors and constantly changing eligibility rules for doctors and pharmacies. The board turned to self-insurance, although it was riskier. The board would save money if claims dropped but lose money if claims soared. They were wrong. Tuesday, Sanders said Robey-Barber could not be held liable for their incorrect projections.