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| How we began. |
In response to continually escalating health benefits premium costs, the NY44 Health Benefits Plan Trust was established in 2003 as an Article 44 Trust to contain health care costs at Erie 1 BOCES. The plan is offered to employees and eligible retirees of Erie 1 BOCES and participating school districts. Beginning its eighth year of operation, and having obtained self-funded status in January 2008, the Trust has grown to approximately 6,800 enrollees from 26 participating districts/schools, representing 86 bargaining units.
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| What sets us apart. |
What makes the Trust unique is that the plan, governed by the New York Insurance Department, is controlled by 10 trustees: five appointed by the labor organizations and five appointed by Erie 1 BOCES’ administration. Because the Trust is jointly run, both union and management have an equal say in how it operates including decisions about benefits offered to the members, annual contributions charged to the employer, expenditures, and additional services. |
| Collaboration. |
Enrollment continues to increase, as the initial success is shared with other local school districts and BOCES across western New York. If collaborative services in health care are a district need in other regions, similar self-funded initiatives could take root with the Trust as their model.
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| Value. |
The Trust has already reported cost savings and other benefits. The plan has historically contained its costs by nearly 10% annually, amounting to millions of dollars. As a self-funded plan, the trust benefits from having premiums which more closely reflect the actual health claims experience of the trust’s covered employees as opposed to an industry-wide experience, which a traditional insurance plan, employing ‘community rating’ would adopt. The plan uses two networks of providers (i.e., hospitals, doctors and other health care professionals). The employees’ area of residence determines which network of providers they use. Independent Health provides coverage within the eight Western New York counties of Allegany, Cattaraugus, Chautauqua, Erie, Genesee, Niagara, Orleans and Wyoming. Beech Street provides nationwide coverage outside the eight-county western New York area. Self-funding allows the Trust to provide employees and retirees with the same benefits under either network.
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| Reputation. |
The Trust is proud of its reputation for providing quality, cost-effective health benefits. As with our founding organization, Erie 1 BOCES, we are committed to those we service – our students, staff and communities – by understanding, anticipating and responding to their needs. |
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