[r20] Rep. Dermody's bill to save schools money approved by House (3/30/2011)

Wednesday, March 30, 2011

Start Date: 3/30/2011 All Day
End Date: 3/30/2011

Rep. Dermody's bill to save schools money approved by House

STATEHOUSE - The House of Representatives approved a bill authored by State Rep. Tom Dermody (R-LaPorte) on Wednesday. House Bill 1260, which deals with school health insurance, passed by a vote of 81-12 and is now headed to the Senate for further consideration.

Under HB 1260, if a school corporation's health insurance costs are over 12 percent more than what the state employer health insurance costs for the same type of plan for over a year, the school would be required to submit a report to the state detailing how they will bring their health insurance costs to be within 12 percent of the state health insurance's cost within a year. If the school is unable to bring costs within that 12 percent after that second year, the school would be required to join the state health insurance plan.

"This bill is meant to save money for school corporations," said Rep. Dermody. "We need to encourage our schools to spend money more efficiently, so ensuring that their health insurance costs are not any more than 12 percent higher than what the state pays for theirs is a great way of doing that. We want to provide schools some flexibility in their health coverage, but we need to keep them accountable and efficient."

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