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OCN > 2406 > Monument Academy School Board, May 9, 14 – Board approves alternative health insurance benefits

Monument Academy School Board, May 9, 14 – Board approves alternative health insurance benefits

By Jackie Burhans

Monument Academy (MA) held its regular meeting on May 9, followed by a special meeting via Zoom on May 14. The board heard about plans to change to an alternative plan for health benefits, announced its new board members, reported on fundraising efforts, and provided an update on personnel changes.

Health insurance benefits changing

Acting Chief Financial Officer Glenn Gustafson reported that MA faced high claims and an increase in healthcare costs of 10% to 15% with its current vendor, Cigna. MA started looking for different options, surveyed staff, and decided to pursue an alternative to the traditional insurance model. Noting that UnitedHealthcare, Aetna, and Kaiser Permanente make billions of dollars and are seeing steep increases in their stock values, he brought his expertise from managing the $30 million insurance plan at D11. Krista Pelley, director of People Operations, did a lot of work pulling in logistics, he said.

Pelley said that Cigna employer and employee premiums, deductibles, co-pays, and maximum out-of-pocket costs have increased dramatically. With MA’s contribution of $770 per employee, employees might pay nothing for the employee alone to over $18,000 for the employee plus their family. With the proposed plan and a reduction in MA’s contribution to $700, employees would pay nothing for the employee alone to up to $6,000 per year for the employee plus their family. This would leave more money in employees’ pockets, she said. MA would also save about $30,000 annually.

An evaluation team consisting of Pelley, incoming Executive Director Colin Vinchattle, Gustafson, Operations Manager Jake Dicus and Secondary Campus Registrar Laura Polen formed to explore a non-traditional plan alternative. The new plan leverages a Littleton-based company called Peak Benefits (www.getpeakbenefits.com), a consultant for healthcare plans that claims to disrupt the health insurance industry, to pull together cost-saving alternatives. MA employees and dependents will have access to Pinnacle Network (www.pinnacleapc.com), which offers subscription-based primary care that claims to provide a higher level of quality medical care than traditional insurance plans.

Medical and prescription benefits will move from Cigna to Redirect Health (www.redirecthealth.com), which requires the use of a member app to coordinate care virtually or in person, navigates the healthcare system, and provides follow-up. MA will also offer a Health Reimbursement Arrangement (HRA) where the employer provides the plan funding and employees can request reimbursement for actual medical expenses incurred up to that amount. Employees who use all their HRA before year-end must cover subsequent health bills out-of-pocket or using a flexible spending account (FSA) or health savings account (HSA).

Pelley said she wanted to start by speaking to staff, getting emails out to them, and giving them opportunities to ask questions. Pelley made use of technology to solicit feedback and questions. One question raised a concern about a conflict of interest since the CEO of Pinnacle, Dr. John Dygert, is the husband of an incoming board member. Pelley contacted MA’s legal counsel, who noted that the incoming board member’s term doesn’t start until July but that after that, she should recuse herself from voting on anything to do with insurance or providers.

Gustafson said that change is hard, especially when discussing healthcare, and acknowledged that people have primary care physicians (PCPs), specialists, and prescriptions that are near and dear to their hearts and health. MA took this leap, he said, knowing it would be difficult. Team members from the health benefit companies and MA fielded questions. Redirect will work with PCPs who do not accept this coverage to try to sign them up. Dialysis is covered, but organ transplants are not; if the employee is rejected for that, it is considered a loss of coverage, and the employee would be able to get a plan in the individual market and have their premiums reimbursed via the HRA. Gustafson said the two biggest changes are the savings for employees, equivalent to a 10% raise, and needing to plan procedures with Redirect ahead of time.

Staff members who attended the board meeting noted that they didn’t receive much information, didn’t have time to research, and felt a lack of clarity. A staff member said that staff do not understand this type of program, having never heard of it and were feeling panicked that this might be approved at the board meeting. Pelley said MA was going to hold four meetings of 20-30 employees so that they could have a discussion so employees could understand what was going on. Another staff member echoed concerns of feeling rushed, pushing back on negative statements about UCHealth, which had supported her financially.

Asked if staff would be able to provide input before a vote, board President Ryan Graham said the board was being asked to take action tonight. Gustafson noted that staff would leave soon and must complete open enrollment by June 30. Pelley said the board could wait until Monday or Tuesday. Graham asked the board to consider a special meeting on Tuesday, allowing employees at both campuses to meet to discuss the proposal. Pelley said the first session with employees would be held the following day, and a recording would be available.

The board unanimously approved a special Zoom meeting on May 14. Vinchattle reported good attendance at the employee meetings at both campuses and a mostly positive response from attendees. The board unanimously approved moving their health benefits from Cigna to Peak Benefits and authorizing the executive director to sign the necessary documents.

Board election results

At its regular meeting, board member Matt Ross announced the results of its board elections, which saw the re-election of Vice President Lindsay Clinton and the selection of Jelinda Dygert. Their three-year terms will start on July 1.

Fundraising update

Dicus began by thanking the sponsors of MA’s gala, which raised over $134,000 for MA. He also thanked staff and board members for their help with the event and its silent auction. The gala is the biggest fundraiser. MA will always have its Lynx fund, but it was not as successful as last year. Other fundraisers include facility rentals and the school store. The community donated over $50,000 to teachers in gift cards they can use to buy supplies and science kits.

Dicus said MA raised $215,000 overall, including upcoming facility rentals, exceeding its $200,000 goal.

Personnel and organization chart changes

Pelley reviewed personnel changes, noting that 14 staff members are not returning. Three of those are retiring, and one was cut due to budgetary constraints. She said reasons for leaving included “personal” and “leaving the profession,” noting a 90% retention rate. MA has filled the middle school English and Latin positions and extended an offer for a custodian position at its East Campus. MA has a newly proposed job description for athletic director/dean, having decided to use existing staff for middle school mental health, saving $50,000 for a middle school counselor. Pelley said math and tech applicants are needed, and there were three applicants for registrar assistant. The hiring committee for the secondary principal comprises four parents and six staff members.

Regarding employees changing positions, Pelley said in elementary, one teaching assistant was moving to a teacher position, a third-grade teacher was moving to physical education, a full-time kindergarten teacher was moving to part-time, and a tech teacher would move to the position of tech assistant support. She also noted that Laura Polen would move from Registrar to Finance, and Vinchattle was moving from middle school principal to executive director. Pelley confirmed that she had spoken to legal counsel to verify the rules about posting positions internally or externally as required.

Pelley noted that the proposed organizational chart had been discussed and showed proposed reporting structure changes and position removals or additions. She explained the meaning of the colors and said the board needed to review the job descriptions for the athletic director and dean assistant. The board unanimously approved the organizational chart along with the job descriptions.

Highlights

Board meeting highlights include:

  • Carle was excited to spotlight Scott Kohlhase, the first valedictorian from Monument Academy East Campus High School. Kohlhase could not attend because he was participating in a Senior Sunset event, so Vinchattle accepted his certificate.
  • The board awarded Haynes the HVAC contract for the West Campus to replace two of its units which are nearing their end of life. The board unanimously approved a contract for $160,323 with Haynes and agreed to draw down the Preschool Fund balance by $82,000 to help pay for it. Gustafson suggested meeting with the board about a five- to 10-year capital plan.
  • The board unanimously approved the FY24-25 proposed budget, along with resolutions for the appropriation of funds, use of beginning fund balances, and inter-fund borrowing.
  • The board unanimously approved policies DJ Purchasing and Contracting and DK Payroll Procedures. The purchasing policy creates a hierarchy of who can sign contracts. The payroll procedures policy is a recommended best practice and provides controls for position changes, additions, and deletions, which must go to the board for approval. MA board policies can be found at http://bit.y/ma-policies.
  • The board agreed to hold its annual retreat on July 12 at 9 a.m., the venue of which will be determined.
  • Ross reported that the West Campus School Accountability and Advisory Committee (SAAC) only received 37 responses to its end-of-year survey compared to 140 in the past. The West Campus SAAC wrote a letter raising questions about the organization’s nature and purpose and the possible benefits of combining with the East Campus SAAC.

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The MA School Board meets at 6:30 p.m. on the second Thursday of each month.

The next regular board meeting will be on Thursday, June 13, at 6:30 p.m. at the East Campus. See more information at https://bit.ly/ma-boe.

Jackie Burhans can be reached at jackieburhans@ocn.me.

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