Legislative solutions to Maine educational budget problems are starting to come in. Rep. Ralph Sarty (R-Denmark) released a proposal for one such idea today. Rep. Sarty’s legislation would give districts the option to self-insure and hopefully save money. “I’ve spoken with nearly 20 school superintendents, and they are all intrigued by this idea,” said Rep. Sarty (R-Denmark). “They are keenly aware that the state’s General Purpose Aid for local schools will drop by $92 million next year and is expected to remain at that level for the following biennium. Health insurance for teachers is costly, and superintendents are very interested in the idea of saving money by self-insuring. They see it as a way of preserving positions for teachers.”
Rep. Sarty’s bill consists of three pieces. The bill would require both the Maine Education Association and Anthem to release any health insurance data to districts at request. Language would be added to Title 20-A Sec. 1001 that would allow school districts to consider group self-insurance or go in with other districts on a plan. Rep. Sarty is hoping more insurance choices, as opposed to the one choice offered now, will give districts the best deal in these tough times.
“At the very least,” Rep. Sarty said, “[school districts] want the flexibility to explore the possibility of saving money. This bill does not require school districts to do anything. It simply gives them the freedom to look for savings during a time of extreme financial pressure.”
With Anthem taking flak for an attempted rate hike, Rep. Sarty’s proposal could be an attractive alternative. The MEA may balk at this bill. The MEA states that, “group health insurance plan is available only as a negotiated contractual benefit and cannot be purchased on an individual basis.” How that reflects on Rep. Sarty’s option for districts is unclear. Optional plans would also be available, such as the Maine Municipal Association plan which offers choices with varying benefits and premiums.
Rep. Sarty’s bill must receive six votes out of ten council members at a February 25th meeting. If it passes, the bill will move to committee before reaching the full legislature.
Is this proposal the free market at its finest or just another bottle of snake oil?
UPDATE:
We’ve just received word that Rep. Sarty’s proposal was voted down. In a party line vote, the Legislative Council rejected the proposal 6-4.
