If the Kyrene School District joined with surrounding districts would that provide better health care benefits and lower rates?
The general rule is that bigger is not necessarily better. Claims are a direct reflection of age, gender, and general health of the insured group. In order for Kyrene to benefit from a larger pool of employees, the pool should be composed of younger and healthier participants. Since claims i.e. doctor visits, hospital stays, lab work, etc. represent 80-85% of the costs, the volume of these claims will determine the premium or rate. For districts to join together, all parties would generally have to agree on a common plan as well as a funding method. These were some of the reasons why Kyrene left a multi-district pool (SEBT) in 1996 to form KEBT. Even with this said, we have asked the KEBT benefits consultant to examine this option as the district goes out to bid the plan for next year. A request for proposal (RFP) has been sent to vendors to achieve this purpose.
