STATE HOUSE – A bill introduced in the General Assembly by Rep. Jan P. Malik (D-Dist. 67, Warren, Barrington), would require school districts to participate in the state health insurance plan if participation would mean lower health costs.
“From the data and studies that I have seen, there is no doubt that doing this is going to save our local school districts a significant amount of money, without in any way altering the kind of insurance coverage that is being provided,” Malik said. “Based on current R.I. Department of Education data … The Education Partnership has concluded that school districts would be saving nearly $8 million in the current fiscal year if this plan were in place right now.”
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Those figures show a state health insurance plan as envisioned under the Malik legislation would cost $4,041,155 for the current fiscal year, at a monthly rate of $23.78 per employee. The non-state plan, at $70 per employee, would cost $11,895,745 for the same period. “The net difference – and therefore the net savings to the school districts – is $7,854,591,” Malik said, “or enough in savings to pay for the program for the next two years.”
His bill (2007 H5118) is co-sponsored by Rep. Arthur J. Corvese (D-Dist. 55, North Providence), Rep. Henry C. Rose (D-Dist. 63, East Providence, Pawtucket), Rep. Thomas C. Slater (D-Dist. 10, Providence) and Rep. Susan A Story (D-Dist. 66, Barrington, East Providence). It is now before the House Committee on Finance.
“Under my proposal,” Malik said, “school districts can continue to exist as they are, with their own individual autonomy, yet save a lot of money.”
Additional information on the proposal is available at www.rilin.state.ri.us.
