Though the decision was ultimately Sanders', leaders of the unions representing teachers and support staff came to the same conclusion at a meeting Tuesday afternoon. Convincing everyone were numbers that describe the dismal performance of the self-insurance plan. That goal has been met only once in the past eight months. It's so bad that, with two months left in its fiscal year, the district's health care budget is already blown. It might take three years to restore that money to the district's operating budget.
Several factors appear to have contributed to the self-insurance plan's downfall.
Last year's health insurance budget was built on claim data supplied by HIP Health Plans of Florida, the district's former insurer. But officials say HIP's data was inaccurate and incomplete, leading them to underestimate the burden they were assuming. What's more, HIP's insurance attracted just 1,500 employees. The district's self-run plan drew 1,850, further skewing the numbers, even though the new employees paid premiums, too. Some district officials also think that until modifications were made in February, the district's health benefits were too generous for what employees were required to pay.