IU Health Plans saves $1.7 million for Wayne Township Schools’ health insurance plan
—INDIANAPOLIS — Indiana University Health Plans made a $1.7 million “grant” to the Metropolitan School District of Wayne Township this spring in the form of money saved on the district’s health insurance.
By working with IU Health Plans, the Indianapolis school district saw claims in its self-insured plan fall to $10 million last year from a projected $11.7 million.
At a time when health insurance claims are rising at many large employers in Indiana and elsewhere, the 14.5 percent reduction in health plan expenses at MSD Wayne was a welcome outcome, district Superintendent Dr. Jeffrey Butts said. The savings were especially helpful, he noted, because the district has faced a multi-million-dollar gap in property tax funding caused by a drop in assessed valuation in the township following the recent recession.
“The insurance savings were significant and have really helped,” Butts said. “It was a good experience working with IU Health, especially at a time when health insurance is so volatile. It is critical to have somebody you can work alongside.”
MSD Wayne will use the savings gained under the IU Health Plans contract to help reduce future insurance premiums for the district’s 2,150 covered teachers and other employees and their dependents, Butts said.
IU Health Plans achieved the savings for its client primarily by working closely with employees and dependents, especially those with high-cost chronic illnesses, to better manage their health, said Cathy Collins, leader of IU Health Plans’ commercial business.
“A big part of the savings was in patient management, using population health measures,” Collins said. IU Health Plans operates a wellness clinic in Wayne Township for school district employees and dependents, who also have convenient access to IU Health West Hospital in nearby Avon.
Collins said IU Health Plans is hardly done finding ways to save money for its school district client, even while improving care to employees. “It’s amazing what’s been accomplished there,” she said. “I think this year is going to be even better.”
ABOUT THE IU HEALTH PLANS/MSD WAYNE CONTRACT:
- After using another insurance benefits company for many years, the school district solicited bids in 2014 to run its self-insured health plan. IU Health Plans won the contract to be administrator and health provider starting January 2015.
- Approximately 1,400 school district employees and 750 dependents are covered under the district’s plan by IU Health Plans.
- Savings totaled $1.7 million in 2015 in the form of reduced claims and expenses. Original expected claims were $13 million, projected claims after figuring savings from a new high-deductible plan were $11.7 million, and actual claims were $10 million. (Savings included $160,000 in reduced plan administrative expenses.) The first-year savings under the contract were verified recently by IU Health Plans and the district after all 2015 claims were reconciled.
About Indiana University Health Plans
Founded in 2013, IU Health Plans is part of the Indiana University Health system. It offers health plans covering about 200,000 members in Indiana, including IU Health employees. It has plans geared to individuals, families, the Medicare-eligible, and employer groups and their employees and families. For more information: http://iuhealth.org/healthplans/
About Metropolitan School District of Wayne Township
Established in 1962, MSD Wayne Township serves much of the Westside and Southwestside of Indianapolis. It has about 16,000 enrolled students and 2,300 teachers and other employees.