School district to take over insurance program

Terry Webster

Thursday, Aug. 30, 2001 | 11:03 a.m.

An arbitration ruling Wednesday that replaces the health insurance provider for the Clark County School District's support employees will leave those with unpaid bills fighting to get them covered, according to a top school district administrator.

The decision will allow the Clark County School District to dissolve the financially troubled Education Support Employees Association Health and Welfare Trust and create its own health care plan for the more than 8,700 employees and family members.

The plan, which will be administered by Health Plan of Nevada, will go into effect Nov. 1.

But those stuck with overdue health bills -- in some cases tens or hundreds of thousands of dollars -- will have to battle the health trust or the union to get them paid, Edward Goldman, southeast regional superintendent, said.

The district moved to take over the fund because it is losing money and not paying health bills, leaving employees liable for the charges, Goldman said.

"They have not been making payments to physicians, and the employees are being left to pay it," he said. "They also have raised co-payments. These people are our employees, and we can't allow this to happen to them."

The school district sought to take over the trust, while the union fought to continue providing the insurance.

The district also had sued the union to force it to continue providing health benefits to 150 retirees and 35 dependents who were to lose coverage. Those retirees, who had chosen to use the union insurance over their other options, will be covered by the school district's new plan, school district general counsel Bill Hoffman said.

"We've always believed those retirees were entitled to continued insurance," Hoffman said. "That lawsuit I suspect will be solved quickly now."

The ruling, signed by arbitrator Thomas Roberts, noted the district will now be able to offer a "more financially stable benefits provider" that will offer more benefits packages.

"The ESEA argues the trust is no longer in danger of failing, but the persuasive weight of evidence is to the contrary," Roberts wrote.

Under state law, the arbitrator had to either side with the district or the union, the arbitrator wrote.

He also pointed out that the district does not have the ability to increase its contributions to the trust.

Bobby Mancuso, president of the support employees union, said he was shocked by the decision. The union was confident the ruling would be in its favor, he said.

"It's the most horrible decision I have ever seen in my life," he said. "There is absolutely no basis for this decision."

Mancuso said at this point, the union does not plan to challenge the arbitration, because its legal options are limited.

"It would be a long shot," he said.