An insurance trust utilized by 80 school districts in the state, mostly in Southern Illinois, has fallen $7 million in the red due to higher-than-expected medical claims and drug costs.
The Salem Grade School District is one of the districts impacted. Superintendent Dr. Leslie Foppe told the school board Thursday night says a lot of school officials are not happy. The trust has come up with a plan to charge an extra assessment to each district, which would amount to $108,000 to the Salem Grade School district.
“I’m a believer in the trust. It’s a co-op. There’s a lot of benefits,” Foppe said. “There are times that districts have harder years with employee health, and those districts that don’t kind of carry that one. Right now, we’re one that’s doing well but now we’re having to carry because there are people that are severely ill that need treatment that costs. That does also drive the costs of things that are unforeseen at times. You never know when you’re going to get sick or be diagnosed with something.”
Foppe says because their losses have not been excessive, they have been placed in Tier One which has a smaller payment than district’s with larger losses. She notes if the district wanted to leave the trust, it would cost $217,000. Foppe is optimistic the shortfall will not happen each year, although participating districts had to pay extra when a similar shortfall occurred two years ago.
