The New Richmond Exempted Village School District is expecting big savings in its health and dental insurance costs after pulling out of the Clermont County Insurance Consortium and joining the larger Southwestern Ohio Educational Purchasing Council.
New Richmond spends approximately $3 million a year for employee health and dental insurance and was facing an increase of 8 percent effective July 1 had it remained in the Clermont County Insurance Consortium which now includes all Clermont County school districts with the exception of West Clermont, Milford and now New Richmond.
“Health and dental insurances represent the second largest expenditure for the district,” said interim NREVSD treasurer Mike Mowery. “Our Board of Education and administration decided to have an independent insurance agent assess our situation.”
Mowery and NREVSD Supt. Adam Bird selected Horan Associates to first review New Richmond’s data and subsequently to seek bids from additional carriers and consortiums for New Richmond’s business.
“We had one bid come in from another insurance consortium, the Southwestern Ohio Educational Purchasing Council, that provided for a seven percent decrease in premiums,” said Mowery.
So instead of an increase of $240,000 in insurance costs the district will realize a savings of around $200,000 in the coming year. New Richmond had been part of the Clermont County consortium for more than 25 years.
“Within the next several years we expect the savings from this change to amount to over $1 million from lower premium prices,” said Mowery.
The decision to move forward was made at a special school board meeting April 13 with the change in coordination with certified and classified employee bargaining units.