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Lewisboro BOE, Teachers Reach Accord On Health Plan

The Katonah-Lewisboro Board of Education and District Teachers Association have approved a Memorandum of Agreement.
The Katonah-Lewisboro Board of Education and District Teachers Association have approved a Memorandum of Agreement. Photo Credit: Katherine Pacchiana

LEWISBORO, N.Y. – The Katonah-Lewisboro Board of Education (BOE) and the Katonah-Lewisboro District Teachers Association (KLDTA) have agreed to eliminate the self-insured health plan that has been in effect for approximately 20 years and replace it with a traditional plan offered by New York State Health Insurance Plan (Empire).

When the self-insured plan originated it was deemed cost-effective based upon the average costs of health care at that time. As the health care industry has evolved over the decades, however, self-insurance is no longer cost-saving.

The BOE and the KLDTA researched a number of viable options and found that the New York State plan is the most practical solution. The new plan is expected to provide reliable health care coverage while it ultimately saves the district a significant sum.

This change in health insurance coverage follows on an earlier amendment to the prescription drug plan, estimated to save approximately $300,000.

On another plane, the BOE and the Teachers Association reached an agreement on an Early Retirement Incentive Plan (ERIP). The plan will grant a cash award of $17,500 to eligible members with at least 15 years of service who choose to retire between May 10, 2013 and June 30, 2015. This would ultimately save significant salary and benefit costs, because the district could then hire somewhat less experienced, and therefore lower-paid, teachers. The estimated savings for next year alone would be approximately $32,500 per retiree.

“The Board is proud of what we have accomplished with the KLDTA,” said BOE President Mark Lipton. “We look forward to continuing this kind of collaborative progress.”

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