CECHCR helps LEAs save on health-care costs
Published: September 28, 2012
School governance teams looking to cut costs may find huge savings in one of their major expenditures—health care—courtesy of free trainings and other services from the California Education Coalition for Health Care Reform.
“Schools spend billions of dollars every year on health benefits,” observed Janet Walden, CECHCR’s project director, and those costs have been rising more than twice as fast all other core educational expenses.
To counter that trend, CECHCR offers innovative analyses and trainings that can help school districts and county offices of education temper those escalating costs. With CSBA and five other management groups joining three major employee bargaining groups on its board of directors, CECHCR’s mission is to bring together management and labor on innovative solutions that preserve good medical coverage at affordable prices.
“Step one,” according to Walden, “is to begin to educate management and unions on how to be wiser purchasers” of health plans, and to leverage the substantial purchasing power that local educational agencies wield in a competitive market. CECHR teams of labor-management trainers have worked with more than 350 LEAs to explain how to reduce costs at the local level, ease administrative burdens and spend less time in collective bargaining. Those insights are delivered in three training modules, culminating in a follow-up services module—all presented without cost.
The nonprofit this year added a fifth module—a “Second Opinion” offering free analyses of an LEA’s health-care benefits.
“Some districts really need in-depth assistance,” Walden said. The Second Opinion option delivers that on request once all parties at the LEA agree to seek additional help. Following a complimentary “desk review” of health-care plans, the consulting firm of J. Glynn & Co. estimates what savings could be achieved. That process can proceed to an additional analysis and recommendations. At that point, CECHCR assesses a fee based on a conservative estimate of the LEA’s projected savings, with proceeds paying for the contractor and to help support CECHCR in its continuing mission.
“If we don’t find you any savings, we’re not going to charge you any money,” Walden declared. Fees rarely exceed 20 percent of the savings, she added.
CECHCR boasts of some extraordinary savings for LEAs: $11.5 million in the Montebello Unified School District, $4 million at Moreno Valley Unified School District, $1,500 per person in the Newhall Unified School District.
CSBA Legislative Advocate Brian Rivas represents the association on CECHR’s board of directors.
“CECHCR’s work is incredibly valuable to school districts and county offices of education,” Rivas said. “School spending on health and welfare doubled between 1998 and 2008, and prices continue to increase. CECHR is helping districts cut costs through effective wellness programs and purchasing pools, along with training to implement new programs.”
Find out more at www.CECHCR.org consider attending CECHR’s workshop, “Lowering Costs and Achieving Better Health Benefits,” on the opening day of CSBA’s Annual Education Conference and Trade Show, coming to San Francisco Nov. 29-Dec. 1.
Register now from the Events Calendar at www.csba.org.