Health savings have added up for New Berlin School District
Consultant has found $615,000 in savings
New Berlin — An international health insurance consulting firm will get another year to squeeze more savings out of the New Berlin School District employee health insurance program.
Willis/HRH reported savings for 2009 at $615,125. The company was hired in February 2009 for $42,000 to look for health insurance savings. The School Board renewed its contract for 2010 for $44,000.
The $615,125 savings came compared to the 2008-09 school year, which admittedly had much higher expenses than usual, Willis representative Dan Nolde said.
"There were very severe episodes in the plan group" in the 2008-09 school year, compared to this year, he said. Claims involving cancer, muscle, skeletal and circulatory problems pushed costs significantly higher, he said.
The 2008-09 cost was roughly $15,116 per employee for the year, he said, which is about 37 percent over the target.
By comparison, the first six months of the current 2009-10 school year are running about 11 percent below the previous cost per employee, Nolde said.
The 2009 savings included $130,000 in cost reduction based on historical claims, $35,000 savings in administrative fees and a one-time $65,000 wellness credit, plus a stop-loss premium saving of $271,000 per year and a $20,000-per-year savings from implementing a passive preferred provider network for dental insurance.
The district also saved about $117,500 from Willis finding dependents who are ineligible but still on the insurance policy, Nolde said. Ineligibility happens because of divorce, marriage or children exceeding the age limit for dependents.
The company found 47 such ineligible dependents.
Nolde sees additional savings to be realized this year from employees taking better care of themselves. Unhealthy lifestyle choices were related to about 28 percent of claims in 2009, he said.
The company will advocate a wellness program that will encourage employees to quit smoking, lose weight or exercise more.
Joe Garza, New Berlin assistant superintendent of schools, described the district's wellness program as minimal, although there is some screening, he said.
Nolde is working with leaders of employee unions on a wellness program that will be developed in the coming months.
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