Memphis City Schools officials consider new health insurance : Jane Roberts
Employees and retirees of Memphis City Schools will likely be covered by Cigna and served by Methodist Healthcare next year in an insurance change the board of education is expected to approve next Monday.
Under the recommendation presented Monday night, the district would save $15.7 million a year by moving from a plan that offers care at all local hospitals to one that limits employees and retirees to a handful of hospitals, but does not include Baptist Memorial Health Care Corp. Employees are not expected to see an increase in premiums this year if the change is adopted.
The recommendation is essentially the plan Supt. Kriner Cash promoted last spring but withdrew after dozens of people, mostly retirees, complained loudly that they were not involved and had no input in the decision.
Cash withdrew his recommendation, saying the process was flawed, and he pledged to rebid the package. He convened a 12-member committee representing employees, retirees and unions to review the proposals and vote on the best option. Aetna, BlueCross BlueShield of Tennessee, Humana and United Healthcare also submitted proposals.
The committee unanimously chose the Cigna single hospital plan, which offered the best price guarantees, long-term cost projection and lowest guaranteed pharmacy rates.
"We asked the vendor to demonstrate commitment to our strategic goals, which they could do in a number of ways," said Sybille Noble, the district's chief contracting officer and committee chairwoman.
Cigna also pledged $100,000 a year for three years to aid the district's academic achievement, $150,000 over three years to promote Cash's healthy youth initiative and 300 clinical nursing hours at no cost to the district.
Board members praised Cash and the process, telling him repeatedly how pleased they were with the committee and the thoroughness of the process.
Cash needed the praise because the meeting included a number of hotspots that prompted bursts of anger. The first was his announcement that the 50,000 square feet of space the board voted to lease for $356,000 a year at Mendenhall Square Mall was going to cost an additional $350,000 this year to bring up to fire code required for K-12 students.
The space has been used by Southwest Tennessee Community College. But the standards are more rigorous for younger children.
Board members were incredulous at times, wondering why no one had noted the more stringent code before the district took occupancy.
Cash took responsibility for the problem.
"I appreciate you being honest with us and taking responsibility for this, but I do know for a fact that codes are written. Please talk to your staff about being thorough and following through with projects," board member Patrice Robinson told Cash.
The school is being used as the MCS Prep Academy charter school for overage-for-grade students in the district's southwest portion.
Forty of the students in the mall setting were sent to other schools until the work is done. About 150 students are still in the building until the code work is done, leading Cash to say that the violation must not be too serious.
If the board does not approve the additional expense, Cash will have to find another space.
