Insurance Shortfall Closed By $13M For Polk County Schools

BARTOW, FL — Polk County Public Schools said it is ahead of schedule in closing a $17 million shortfall in the health insurance paln for the district with health-care plan adjustments and alternate means of care. According to a news release, the work done to stabilize the health plan means that, for the foreseeable future, employees will not incur any additional costs for insurance coverage.

A combination of high-dollar claims and insufficient funding over time had pushed the school district’s health plan far into the red. In 2019, the gap between anticipated claims and available funding exceeded $17 million.

“Two years ago, I brought to your attention that our health plan had major problems … and that we had to make some major changes,” said Chief Financial Officer Michael Perrone at the April 28 school board work session.

Polk County Public Schools’ self-funded health plan is on track to become financially sound this year because of the changes negotiated and implemented by the Polk Education Association, officials said. The school district changed insurance companies from Florida Blue to Blue Cross and Blue Shield of Alabama.

Employee deductibles increased from $750 to $900 annually. Co-pays went from $40 to $50. Increases in the district's contribution, employee deductibles and co-pays and changes to its pharmaceutical coverage — combined with better-than-expected claims in 2019 —cut the projected deficit from more than $17 million to just over $4 million.

In addition, the district encourages employees to utilize the district’s two free health clinics as well as participation in the district’s wellness program.

If no changes had been made, the health plan wouldn’t have gotten out of the hole until 2023.

The stabilization of health-care costs could mean that in future budget years, the district will be in a better position to provide pay increases, though Perrone cautioned the financial impact of the pandemic on the district remains to be seen.

To watch the health plan presentation to the school board, skip to 1:46:30 on the video provided by Polk County Public Schools: