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Montoursville school district absorbing higher health care rates

By Mike Reuther 2 min read

Health insurance costs are expected to rise significantly in the Montoursville Area School District in the coming year.

And the 14.4 percent increase likely to be included in next year's spending plan is only part of a trend not likely to end anytime soon, district officials reported at Montoursville Area School's recent work session.

District Superintendent Daniel Taormina said the higher health costs simply are not sustainable over the long run.

"It's been continuing to be a thing," he said.

He said it's an issue the board must address with options that could include hiking taxes or finding other funding options.

"We've got to tackle this," he said.

Business Manager Jessica Reich said everything certainly seems to be trending towards higher insurance costs.

"I think we are definitely going to land on that 14.4 percent (increase)," she said. "I don't see it going down from there."

The increase will mean an additional $568,620 in health care coverage to bring the district's overall cost to $4.5 million.

This year, the district absorbed 9.9 percent higher costs for health coverage.

Reich noted that the district has stop-loss coverage, but it's expensive.

Stop-loss coverage is a financial safety net that is meant to protect self-insured employers from catastrophic medical claims.

The district is part of the Lycoming County Insurance Consortium (LCIC), a pooled health and welfare trust that manages employee benefit plans for public school districts and other educational entities in the region.

In other matters, the board approved the hiring of Marisa Sponhouse, pending receipt of clearances, as a school counselor at a starting annual salary of $79,436.

The board approved Myla Kelley as a substitute teacher and accepted the resignation of Chris Higley from the event staff.

Taormina reported that work at the varsity baseball field which includes new drainage and sod on the playing surface is wrapping up.

The next board meeting is scheduled for 7 p.m. Tuesday, Nov. 10 at the high school.

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