Evesham School District Healthcare Discussion Draws Ire at Feb. 18 Town Council Meeting
The main topic of discussion at the Feb. 18 meeting of the Evesham Township Council concerned health-care benefits, and that discussion elicited a passionate response from several of those in attendance.
The conversation started months prior with an idea that the council look into the possible effects of having the Evesham Public School District enter into a shared service agreement with the township regarding health-care benefits.
The investigation focused on any possible benefits and savings that would occur if employees of the school district were to switch to the same partially self-funded privatized health insurance plan other township employees were enrolled in several years ago.
For a majority of the meeting, the council and audience listened to a health insurance review presented by representatives from Anderson, Jackson, and Metts Insurance Management, the company currently running the township’s health insurance plan.
Tony Mahon, president of AJM Insurance, said as more township employees have enrolled under the partially self-funded program, as opposed to a the state health benefit plan, the township has seen an increase in coverage and customer service and a decrease in price.
“We’re happy to say that in 2013 we were able to save the township over $400,000 on health-care costs,” Mahon said.
Greg D’Orazio, an employee benefits manager at AJM, said that for the partially self-funded program the township was projecting the same costs for 2014 for health-care expenses that it did in 2013. He also said AJM compared the plan with fully insured carriers and the state health benefit program.
“I can tell you I did go to some carriers, for example Blue Cross and Blue Shield of New Jersey, who declined to even offer a quote telling me that the rates that we’re offering are too competitive,” D’Orazio said. “They couldn’t beat the plan, and this is coming from a fully insured carrier that is offering benefits on the state benefit plan.”
After the presentation, Mayor Randy Brown opened the topic to public comment, noting that nothing discussed was binding, and the only reason it was being discussed was that the expectation of township council is to do everything possible to come up with ideas on how to save municipal tax dollars.
“A work session, as you guys know, is nonbinding,” Brown said. “It’s a great time to throw ideas out, but it’s attracted some people –which I’m glad you came. We have open conversation about it which is outstanding.”
The first to comment was Evesham School District Superintendent John Scavelli. Scavelli commended the council for looking at all possible ways to save money, but said he and the board of education have also looked at plans from all major carriers and have found nothing competitive to the state health benefits.
“Nothing has comeback to be competitive with the state health insurance plans,” Scavelli said. “We have also sent the information to AJM about two months ago and asked for a proposal back, and at this point we have been denied that proposal. My request is very direct. If there is a proposal that involves the school district and any numbers that are put together, we are requesting that proposal so we can analyze that.”
Mahon responded by saying the district still needed to hand over more data, but once AJM had the necessary information, a full proposal could be put together within only weeks.
School board member Lisa Mansfield also spoke during public comment. She said she appreciated the fact that the council wanted to save money, but was concerned that it sounded like the council had been discussing the issue for some time without involving the school board.
Brown said school board members have been included in a meeting as recently as two weeks ago and he notified everyone he was required to notify.
Mansfield said she had no knowledge of that.
“I would like to state on record that I am a school board member and I have no knowledge of those meetings,” Mansfield said. “Whoever was in contact with you from the school board or as a school board representative to set these meetings up left out many members of the board.”
In other news:
• Council accepted a donation of three memorial scoreboards to the Evesham Township Recreation Center from the family of Shawn English. A drunk driver killed English in May 2009.
• Council authorized the execution of a shared services agreement with Pemberton Borough for municipal court services.
• Council discussed the positives and negatives of fixing potholes with short-term solutions compared to long-term solutions, given the costs and the weather of the past few months.
• Evehsam Chief Police Christopher Chew gave a report on the dropping crime rate in Evesham.
