AG to withdraw from IU1 health insurance consortium, join Allegheny County group
YORK RUN — The Albert Gallatin Area School District anticipates saving money by changing health insurance consortiums for the coming year.
Teachers will receive health insurance beginning July 1 via the Allegheny County Schools Health Insurance Consortium (ACSHIC), pending acceptance into the group.
The school board at its recent meeting authorized the district to notify the Allegheny Intermediate Unit of its intent to enroll in the ACSHIC and to withdraw from Intermediate Unit 1 Health Insurance Consortium.
Superintendent Chris Pegg said the move is one byproduct of ongoing negotiations with the teachers’ union to come to terms on a new contract and will result in “substantial” cost savings for the district while providing similar benefits as those that employees are currently receiving.
Pegg said the switch to participating in the ACSHIC is expected to save the district an estimated $900,000 in health insurance costs.
Albert Gallatin must still be approved for acceptance into the ACSHIC. The district is required to give the Allegheny Intermediate Unit a 90-day notice prior to its intended start date in the group, said Pegg, as well as notice to the IU1 by March 31 of the its intent to leave the latter’s health insurance consortium.
The district currently spends approximately $6 million a year on health care costs, according to district business manager Denise Sheetz.
The ACSHIC represents over 18,000 school district employees and retirees at 41 school districts, four vocational schools and one Intermediate Unit in southwestern Pennsylvania, according to the consortium’s website. It provides health care coverage through Highmark BlueCross BlueShield.