School Board will stay with Blue Cross

CENTERVILLE — The St. Mary Parish School Board will keep Blue Cross Blue Shield of Louisiana as its employee health insurance provider after hearing an alternative proposal from United Healthcare representatives last week during a special school board meeting.
Blue Cross Blue Shield initially proposed a 9 percent rate increase at the October school board meeting but amended the rate increase to 7 percent in hopes of keeping the contract with the school board.
The school board currently pays an average of 59 percent of employee and retiree premiums, or about $7,572,000 a year.
United Healthcare’s offer was for a 1 percent increase over the current premiums with a cap on adjustments at the time of renewal.
The maximum rate adjustment increase would be a 9.6-percent increase in 2019 based on the current benefit care-loss ratio, but could be reduced to 4 percent with a reduction in insurance claims.
“We want a long-term partnership,” said Jenea Partyka, accountant executive of United Healthcare.
United Healthcare said it can reduce high insurance claims by having employees and retirees use tools such as virtual doctor’s visits, a synchronized network of medical history to decrease administrative costs, preventative online resources and wellness strategies.
United Healthcare proposed the same amount of coverage and discounts as Blue Cross Blue Shield but sealed its rejection when United proposed for a deductible of $2,500, a $500 increase from Blue Cross, in which an employee would have to pay the whole amount in advance when seeing a specialist doctor before the insurance would kick in.
“And that is the difference between a 7 percent hike versus a 1 percent hike,” said James Perez, the school board’s insurance consultant. “[United Healthcare does] things a little different but they are both good plans and now it is up to the board to make a decision.”
Currently, a specialist visit costs $55 under Blue Cross Blue Shield.
“I was with United up until the point the representatives said that we have to come out of pocket first to see a specialist before the insurance kicks in,” said Marilyn LaSalle, district five school board representative.
“I visit a cardiologist twice a year and I never reach my deductible,” said Alton Perry, chief financial officer.
The St. Mary School Board has used Blue-Cross Blue Shield as its health care insurance provider since 1993 and currently has 1,526 employees and retirees on its plan.