Anne Arundel School Board, Unions, Agree to Increase in Drug Copays

As part of an effort to curb health care cost for the Anne Arundel County Public School System, three of the schools’ unions agreed to increases in copays for some prescriptions drugs to save the school system about $400,000. The three-year agreement starts in 2018.

As reported by The Capital Gazette,

The school system’s health care fund has faced about a $20 million deficit in the past two years. Medical costs rose and the school system has been expanding its staff. Earlier this year, the school system transferred $2 million from a surplus fund to pay for health care. County Executive Steve Schuh also transferred $5 million from the county budget to help pay for health care for school employees and avoid drastic actions, such as furloughs and layoffs.

Schuh and school officials have said they need to shift some costs of the health insurance to employees to make the fund sustainable.

The agreement between the school board, Teachers Association of Anne Arundel County, the Association of Educational Leaders, and the American Federation of State, County, and Municipal Employees increases copays for preferred prescription drugs to $20 and non-preferred brand prescriptions to $35. Those unions represent teachers, administrators and maintenance workers respectively. Generic drugs will continue to cost $5.

School staff that belong to those three unions now have copays of $15 for preferred brands and $25 for non-preferred brand.

Under the plan, a new tier called specialty prescriptions, which are defined as injectables with the exception of insulin, would have a copay of $50 in 2018, $65 in 2019 and $75 in 2020.

The agreement also allows specialty prescriptions to be redefined after Jan. 1, 2019.

School officials’ effort to curb costs include an agreement with CareFirst that saves the school system $16.9 million over a three-year period, starting in 2018.

County officials are also asking the State Board of Education to allow the county government to make a one-time allocation of $22.5 million for school health care costs for the fiscal year beginning July 1. This would exempt the school system from the state law that requires the level of per-pupil funding in one year to be matched in all subsequent years.

The state agency is expected to respond by the end of the month.

Read the full article for more information.