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South Columbia County Chamber of Commerce |
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CHAMBER UPDATE |
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April 2007 |
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March 16, 2007 E-Newsletter,Volume 2 No 10
Legislative Report Rep. Brad Witt
Hello again, from your State Capitol!
In recent years, our school districts have been doing yeoman’s work when it comes to providing an education for our children on carefully crafted budgets. With all of the escalating costs associated with education, including salaries and benefits, supplies, transportation, insurance, maintenance and capital improvements, it is no wonder that our districts are looking for relief. The Legislature cannot do anything about some of these expenses, but it can possibly do something about reining in health care costs.
On Tuesday, the House spent the better part of the day debating the merits of SB 426, the bill that would create the Oregon Educators Benefit Board (OEBB). This Board would be directed to contract with providers for health and dental benefit plans for employees of certain school districts, education service districts and community college districts. There were many hearings on this bill and several days of negotiations before votes were cast.
Many school districts now contract with the Oregon School Boards Association (OSBA) for health insurance. OSBA has provided very good coverage thus far for district employees, but each district has had to negotiate its own contract based on its particular size and demographics. Fear of leaving an adequate health insurance system has prompted many school districts to request that the bill be amended to require an independent actuarial study. I would favor such a request had this issue not already been studied several times, beginning in 2003. Three different studies by three different, independent actuarial firms concluded that combining school employees into one health insurance pool will save school districts and their employees millions of dollars each year.
Oregon’s school-based health insurance pool numbers about 85,000 potential enrollees. With a pool this size, OEBB should be well positioned to negotiate favorable health insurance rates. There are a number of reasons for this including: · Lower per capita administrative costs · Greater bargaining power with insurance companies · Economies of scale (which is to say that eggs are cheaper by the dozen) · More stable demographics as well as more stable patterns of usage
The latest study, conducted by Watson Wyatt Worldwide, projected a potential savings of $270 million in five years, once the plan is fully implemented. Actual savings will be slightly less, however, because SB 426 exempts districts that self-insure or that have their own health insurance trust.
Section 16 of the bill also provides for some measure of local control. A local union and a school district may still negotiate a collective bargaining agreement that extends beyond the October 1, 2008 start-up date for the plan. However upon expiration of the contract, participation in OEBB will be mandatory. Also, districts that self-insure or have their own health insurance trust may opt out of the state pool if they meet certain requirements, but their impact on overall costs is minor.
The second protection, found in Section 17, specifically obligates the OEBB to provide a plan, with comparable benefits, that is no more expensive than the prior benefit plan. This is a statutory obligation and if the OEBB does not meet its responsibility to provide a plan at least as good as what the district currently has, then the district can sue to compel compliance. This is a pretty heavy hammer. All in all, I felt that this bill offered compelling reasons to support it. It is now headed to the Governor for his signature.
Bills of Interest… HB 3419 (Rep. Scott et al): Eliminates civil liability of seller or manufacturer of firearm or ammunition for damages resulting from unlawful use of firearm. HB 3422 (Rep. Esquivel, Witt et al): Establishes Oregon State Police Fund. HB 3439 (Re. Roblan, Witt et al): Requires all boats that carry passengers for hire to require each person on board to wear personal flotation device when crossing ocean sand bar or other obstacle that exists between open sea and harbor entrance. HB 3492 (Rep. Gilliam, Witt et al): Requires Board of Medical Examiners to reveal certain information about complaints against licensees of board when requested to do so by any person. HB 3351 (Rep. Lim): Directs State Dept. of Fish and Wildlife to develop and implement plan to control and reduce pinniped predation of salmonids in Columbia River.
Thanks for taking the time to read my newsletter. We’ll try and send it to you on a weekly basis. Please don’t hesitate to contact my office if you have questions or comments about this article or anything thing else regarding state government. |
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2007 Board of Directors About the Chamber Update
Letter to Chamber Members Sustainable Tourism Report Board of Directors & Staff
Press Release—Rainy Day Fund Membership News That’s New Press Release—Columbia City School New Members Newsletter Ad Drawing
From Marna’s Desk Chamber Statistics April Events May Events Member to Member Discounts Ticor Title Ribbon Cutting
Education Survey Results Chamber Events Technology Article Spring Clean Up Day
Legislative Report Megga Easter Egg Hunt Kiwanis Raffle
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