ERIC Number: ED325145
Record Type: RIE
Publication Date: 1989-Sep-11
Reference Count: N/A
Statewide Community College Employee Benefit Consortium.
Guy, Jerry T.
Health insurance benefit programs in Texas community college districts fall into three groups. Comprising 25% of the districts, districts fall into three groups. Comprising 25% of the districts, the "help me now" group has experienced heavy group health insurance benefit utilization over the past few years and is unable to purchase required coverage at rates even close to state funding. The second group, the "we're okay for now" group, comprises about 50% of community college districts and purchases coverage at or near the state funding level. The final group, the "what's the problem" group, comprises about 25% of community college districts and purchases group health insurance at a price well below the state funding level. This final group may be unprepared for the runaway health insurance premiums which have already struck the other districts. There is evidence that group health insurance premiums will double every 3 years. The components of this increase in health care costs are medical inflation, cost shifting, increased utilization, catastrophic cases, technological advances, and malpractice. Factors more specific to community colleges include minimum benefit standards, adverse risk selection, an aging population, and health maintenance organizations draining the healthier risk population pool. The formation of a statewide consortium of community college districts managed by a common benefit consulting firm to provide employee health benefits would result in: lower administrative costs; lower pooling charges; rate stability; reduced staff costs; increased carrier interest; political influence; and greater autonomy and self-determination. Presentation overheads, and guidelines for implementing a consortia are included. (JMC)
Publication Type: Speeches/Meeting Papers
Education Level: N/A
Audience: Administrators; Practitioners
Authoring Institution: N/A
Note: Paper presented to a meeting of presidents from the Texas Public Community and Junior College Association (Austin, TX, September 11, 1989).