KASB Risk Management Heath Care Consulting (November 2016)
KASB’s newest service helps manage health care and benefits costs.
KASB Risk Management Health Consulting is a new option for members interested in managing health care costs and related employee benefits.
“There are many, many solutions out there for health insurance,” said Rod Spangler, director of KASB Risk Management, “but school districts are woefully underserved because they aren’t receiving true consulting services. Typically an insurance broker or representative offers a two lever system – raise premiums or reduce benefits. There are many other alternatives that should and could be explored.”
Spangler outlined the new service for the KASB Board of Directors at its Nov. 5 meeting. He will provide additional information at the KASB Annual Conference in Wichita during a breakout session Saturday, Dec. 3.
“Our members know a lot about education, but the depth of knowledge about health insurance is limited. That’s where we can provide great value,” he said.
According to Spangler, the concept of health consulting is fairly simple.
“There’s a big difference between a health insurance broker and a consultant. Most districts work through a broker to get employee health, and the broker gets paid by the insurance carrier. The consultant works for the board of education,” he said. “You get the same services as from a broker, and the cost of the insurance usually goes down.”
Spangler noted that while it is certainly acceptable practice and industry standard for health insurance carriers to pay commissions to brokers, in many cases district could reduce the overall cost of their insurance plans if they access their health insurance differently.
Through an endorsed consulting agency, McInnes Group Inc. (MGI) in Fairway Kansas, KASB Risk Management Health Consulting provides clarity and education around plan design options, assistance with negotiations and communication with the insurance carriers and detailed plan analysis. Fees are based on several options and range from a percentage of the annual medical premium to a percentage of the realized savings.
KASB members can also now receive at no cost up to two hours of consulting on their health plan as well as ACA. Additional consulting work is available at an hourly rate.
“The better schools operate their business, the more money they have for the classroom. With all of our risk management solutions, we are aggressively working to find more appropriate, fiscally responsible price so that our members can turn those resources into an student success asset,” Spangler said.