Tecumseh adopts insurance ‘best practice’

TECUMSEH, Mich. — Tecumseh Public Schools trustees have named the district as its own insurance policyholder, a move intended to help it gain an additional $100 per pupil in state funding in 2011-2012, The (Adrian) Daily Telegram reported.

Trustees said they believe the action will help the district contain health insurance costs, according to The Daily Telegram. Tecumseh currently purchases health insurance through the Michigan Education Special Services Association, an affiliate of the Michigan Education Association, the report said.

Traditionally, MESSA will not provide insurance to a school district unless MESSA is named the policyholder. However, the school aid budget for the coming year requires districts to adopt four of five “best practices” in order to receive higher per-pupil funding, The Telegram reported.

Naming the district as the insurance policyholder is one of those; others include requiring employees to pay at least 10 percent of their health insurance premiums; sharing or consolidating services among districts; seeking competitive bids for noninstructional services and creating a public “dashboard” showing financial and performance data, The Telegram reported.

“They’ve dangled the $100-per-pupil carrot in front of us,” said board president Ed Tritt, according to The Telegram. “This is like you or me shopping for insurance. If we can find it at a better price, we’ve got to take it.”

The (Adrian) Daily Telegram, “Tecumseh school board adopts state ‘best practice’ on insurance,” May 24, 2011

Mackinac Center for Public Policy, “School Savings: Is Your School District Missing Out on Savings?” Jan. 18, 2010