1Directing the Legislative Budget and Finance Committee to
2conduct a study relating to the feasibility and cost-
3effectiveness of merging public school district health care
4plans.

5WHEREAS, There is increasing concern among the citizen
6taxpayers of this Commonwealth over the rising cost of education
7in our public schools; and

8WHEREAS, School board members and business managers have
9noted that the costs of benefits, particularly those related to
10health care, are among the fastest growing expenditures in a
11district's budget and this problem is particularly acute in
12rapidly growing and urban districts; and

13WHEREAS, The size and composition of an insured group
14directly impacts the costs of coverage, with larger groups being
15afforded better rates; and

16WHEREAS, The extent of health benefit coverage provided to
17school employees is currently negotiated locally, with the
18result that the State has no control over the growth in these

1expenditures; and

2WHEREAS, It is critical to assure taxpayers that governmental
3agencies are providing services in an efficient and cost-
4effective manner so as to provide maximum utilization of
5taxpayer dollars; therefore be it

6RESOLVED, That the Legislative Budget and Finance Committee
7be directed to conduct a study relating to the practicability
8and potential cost-effectiveness of merging public school
9employees under the same group health benefits package; and be
10it further

11RESOLVED, That for the purposes of this study, health
12benefits include medical, dental, vision and prescription drug
13programs and that this study include:

14(1) An analysis of the specific health benefits
15currently provided by school entities throughout this
16Commonwealth, the premium costs related thereto and the
17pattern of growth in these costs.

18(2) Cost of current benefits for the next five years.

19(3) Cost of current school employee contribution or
20average per employee.

21(4) Impact on the Public School Employees' Retirement
22System and State Employees' Retirement System.

23(5) Comparison of coverage with average taxpayer in the
24relevant region.

25(6) Regionalization versus one health care plan.

26(7) Cost savings realized with consortiums compared to
27prior consortiums.

28(8) Administrative, staffing and technology costs
29associated with forming mergers.

30(9) Comparison of school employees versus Commonwealth

1employees.

2(10) Cost of least used benefits by school employees.

3(11) Cost impact of the Patient Protection and
4Affordable Care Act (Public Law 111-148, 124 Stat. 119);

5and be it further

6RESOLVED, That in compiling this report the Legislative
7Budget and Finance Committee seek input from the Department of
8Education, the State Board of Education, the Pennsylvania
9Association of School Business Officials, the Pennsylvania
10School Boards Association, the Pennsylvania State Education
11Association, the Pennsylvania Federation of Teachers, group
12insurance providers and any other groups or individuals who may
13have information relevant to this study; and be it further

14RESOLVED, That the Legislative Budget and Finance Committee
15report its findings and recommendations to the Senate no later
16than June 30, 2014.