2010-01-28 / News

Les Cheneaux School District Changes Insurance Plan

By Michael Ayala

Continuing to cut costs, Les Cheneaux Community Schools will switch to a new medical insurance plan to save money. While the plan comes with higher deductibles, the district will pick up the difference and hopes to save money, betting that this added obligation will be less than the savings in premiums.

Meeting Monday, January 18, the school board said it would look further at a plan by a consultant to assess ways to cut energy costs, but did not sign a contract for any service, and Superintendent Amy Scott announced the creation of a new program to help students become more organized.

The district's new insurance plan received unanimous support from the school board.

Bob Staple of Set Seg, a school insurance provider based in Lansing, told the board that a new Blue Cross Blue Shield plan will have a higher deductible, but teachers and support staff will maintain current benefits and see the same physicians without spending any more money out of pocket. That is because the district will pay the higher deductible charges. The district, meanwhile, will save money on the premiums.

Mrs. Scott said she worked with Mr. Staple and an insurance committee to iron out the details. Teachers, support staff, and the unions have been receptive to the change, she said.

School employees formerly paid a $10 co-pay for prescription generic drugs and $20 for brand name drugs. Under the new plan, the copay would remain $10 for generic and increase to $40 for brand name drugs.

Formerly, employees' contributions to the health plan were based on their step level of employment, the number of years they have been employed there. Employees will now make a monthly insurance premium contributions of $100 for a single person, $125 for two people, and $150 for a family. Whether this will cost employees more or less depends on the step contribution they had to make in the past.

The previous insurance plan did not include deductibles, however the new plan will. One-person coverage will have a deductible of $2,500, and a two-person or family coverage plan will have a $5,000 deductible. The school will pay the deductibles while employees will make monthly contributions.

The school has paid about $530,208 annually in insurance costs. Under the new plan, if every employee used the maximum amount of their coverage, the cost would be $498,579. On the other hand, if employees used 22% of their coverage, the cost would decline to $274,647. The school could potentially save between $31,629 and $255,561.

Energy Savings

Donovan Stevens of Technical Energy Performance Group of Byron Center, a company that designs energy systems for Michigan-based schools and companies, said the group could design energy upgrades that would save the school 25% to 30% of its roughly $250,000 annual costs. Mr. Stevens said the design work would not cost the schools any money, and any shortfalls in expected energy savings would be covered by the company for 10 years. They would also provide a 10-year-guarantee on any installed equipment and would help train staff on maintenance.

If the school decided to move forward, the company would help them develop a request for proposals, advertising that the school is interested in seeing energy savings proposals. The group would also submit their own in competition. Mr. Steven said he is confident his company would submit the best proposal.

Once the school selects a proposal, it would seek financing from sources such as banks to fund the project. Project costs would be paid for through energy savings, Mr. Stevens said.

Changes to energy systems at the school would include replacing boilers and working on ventilation and caulking, he said. Overall, the project would cost $460,000 to finance.

The school board was cautious of the proposal. Mrs. Scott said she checked with Brimley Schools, who was moving ahead with the company's proposal, and heard administration there is very supportive of the project. The Les Cheneaux school board approved the concept Mr. Stevens presented, and are awaiting more information. The board did not agree to sign on with the group, however.

Check In/Check Out Program

A new program designed to help children become organized before and after school was launched Monday, January 18. The program, called Check In/Check Out, uses volunteers to meet with K-12 stu- dents as needed before school and after school to ensure they have their needed school materials with them. Volunteers go over a list of items with the students to make sure they have their homework, backpack, coat, and other items and give them positive reinforcement when they do. Rewards can include a gold star or points toward a free pass to one of the school's athletic events.

The program was initiated by the realization that working parents may not always be available at home to make sure their children have school materials with them. Intervention, Title I, and other program staff are assisting in the effort, and Mrs. Scott is also seeking adult volunteers, who can contact her at 484-2256.

Deficit Elimination Plan

The school continues to follow the deficit elimination plan it submitted to the Michigan Department of Education last month. Health insurance and energy savings are several ways the school is meeting plan goals, Mrs. Scott said. She is also discussing with DeTour Area Schools Superintendent Angela Reed ways the two districts can share non-academic services, such as food, business, transportation, and intervention services.

The board also learned state aid for at-risk programming at Les Cheneaux schools will be reduced by $24,900. The aid can be used for at-risk programing such as counseling and after-school aid programs. The reduction reflects a greater number of at-risk students statewide and diminishing enrollment at Les Cheneaux Community Schools. Mrs. Scott said the $24,900 cut will be made up from the general fund. She does not expect any general program cuts at this time.

The district expects to gain about $8,000 with the reinstatement of $127 per pupil the state had originally said it would cut from its foundation allowance.

School Election

School board seats held by Marianne Coyne and Carl McIntire will be up for election May 4. The deadline for filing for the seats is Tuesday, February 9.

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