JACKSON SCHOOL BOARD SIGNS CONTRACT WITH INSURANCE CONSULTING FIRM

JACKSON -- The Jackson Board of Education approved a one-year contract with insurance consulting firm Robert O'Bryne and Associates during a meeting Tuesday night.

Dr. Terry Gibbons, assistant superintendent of Jackson schools recommended the contract with the consulting firm to help the district shop for other insurance options.

"What we are faced with is a situation where from my perspective, we need some help," he said. "This will only be for one year."

The consulting firm will charge the district two percent of its employee benefits budget, about $16,851, for assistance in making the district marketable to insurance companies. The district will be billed monthly, and the contract may be canceled with a 30-day notice at any time.

Duties of the consultants will include helping school officials to obtain past claims histories and in preparing requests for proposals to be submitted in the spring.

School board members said they were reluctant to hire a consultant because of the expense involved. However, they said they understood the short-term need for assistance and recommended the contract be canceled as soon as the need subsides.

"If we can afford it, I would be in favor of approving a motion, but keep a close eye on it until the crisis passes," said board member Jack Knowlan Jr.

Jackson is one of many public entities in the state that will experience a significant increase in health insurance premiums through the Missouri Consolidated Health Care Plan this year.

Missouri Consolidated was created by state statute in 1992 to administer the health-care program for state employees. Public entities like city and county governments and school districts later became eligible for the program under the same plan.

A five-year contract was signed with health maintenance organizations (HMOs) and point of service (POS) plans throughout the state to provide health coverage to state employees.

Earlier this year HMOs and POS plans complained they were losing money by participating in the plan. This summer, providers requested and received permission from lawmakers to alter the 3 percent cap on premium increases they had promised when the plan was sold.

Jackson schools will take a hit of about 25 percent.

Gibbons said the firm will continue to help the district in its attempts to gain access to its claims history from the previous year. To date, Missouri Consolidated has not released the district's claims history, an action which has made other insurance companies hesitant to vie for the district's business.

"Insurance companies like to know what they're getting into, and we couldn't provide that information," said Gibbons at a recent board meeting.