Westport School System Saves $700,000 By Switching Insurance Carrier

Westport’s school insurance cost increase, roughly one percent over last year, has beat the town’s projected increase of five percent, according to Board of Education benefits consultant Robert Pernicka, Senior Vice President of The Segal Company.

Part of Westport’s savings can be attributed to the town not suffering any recent catastrophic medical claims, Pernicka noted. Overall, changing to Cigna in 2010 has resulted in a seven percent savings ($700,000).

“We knew Cigna would provide the same level of benefits for a better price,” Pernicka said at the board of education meeting at Tuesday night. The board of finance was also in attendance Tuesday to evaluate the system’s medical insurance costs.

Pernicka mentioned that the current plan gives employees incentive to purchase generic medications in lieu of name brand meds as the co-pay for generic prescription drugs is $10 compared to $45 for name brands.

Pernicka spoke about trends and the fact that Westport beat many of them. Not only did Westport beat the school system’s health benefits projected cost increase, but they also beat the regional increase by nearly seven percent.

Board of Finance Chair said he was impressed that the school board was able to keep the ‘numbers in check,’ noting the current healthcare issues nationwide.