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School System Could Save As Much As $10 Million On Healthcare Costs

November 20th, 2016 by WCBC Radio

As the Allegany County Board of Education prepares to begin its budget process, the skyrocketing cost of health care stands as one of the bigger challenges ahead.   Preliminary budget numbers show the school system spent $23.3 million for health care coverage in fiscal 2015/2016 and those numbers could increase next year according to Larry McKenzie, director of finance. According to information obtained by WCBC News, as of June 30tj, employees had paid $2 million. $2-$3 million is charged to various grants; approximately $800,000 is charged to food service and $4-$5 million has been paid by retirees. An estimated $14 million charged to the Board's General Fund Health Insurance includes both dental and vision. The health insurance fund balance just a few years ago stood at $9 million. Today it is just $2 million. If the Board added a ten percent premium share to their employees, the system could save an estiamted $1.5 to $2 million. Introducing a 50/50 split could save the system $8 to $9 million.  The issue of the board’s health care cost has been a regular topic this past week on WCBC’s  “Dave Norman Show”…


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