The Lawrence school district cast its lone vote against the proposed sale of Blue Cross and Blue Shield of Kansas to a for-profit Indiana insurance giant, district staff said Monday.
A committee of district teachers, classified staff and administrators made the decision to oppose acquisition of the plan by Anthem Insurance Companies Inc. of Indianapolis, which has 8 million policyholders in eight states.
"Our feeling is to vote no on the merger," Barbara Lynch, the district's employee benefits manager, told the Lawrence school board.
That district's committee added its voice to that of doctors, hospital administrators and nurses concerned the sale to Anthem wouldn't be in the best interests of 700,000 policyholders in Kansas. There is the possibility Anthem would raise rates more rapidly to satisfy stockholders.
"From what I have heard ... there certainly seems to be some valid questions being raised," said Sue Morgan, Lawrence school board president.
The school board accepted the committee's action without taking its own vote on the issue.
Blue Cross of Kansas administers programs for the district's 1,500 employees, but the district remains one of the few left in Kansas that are "self-insured."
l Meanwhile, the school board voted 6-1 to pay a consulting firm $23,000 to help the district negotiate a new insurance benefit package for employees.
One reason for bringing in experts was the possible sale of Blue Cross of Kansas, Supt. Randy Weseman said.
While approving the deal with Haake Companies of Kansas City, Mo., several board members expressed concern that the recommendation from the benefits committee didn't include information about other firms that bid on the contract.
Board member Jack Davidson, who voted against the measure, said it was impossible to assess Haake's proposal without considering the options.
"I didn't get enough information," Davidson said. "I haven't a clue."
The committee interviewed representatives of four consulting firms before picking Haake, which served as consultant five years ago when the district's policy was last put out to bid.
l In other business, an agreement approved by the school board will draw upon the expertise of Kansas University faculty to assess the educational needs of public school children.
By committing $21,000 to pay half the annual salary for a director of the new Center for Psychoeducational Services, the district will receive about 660 hours of evaluation for students in kindergarten through 12th grade during 2002.
Angela Lumpkin, dean of KU's School of Education, said she would wager her professional reputation that the center would make a "big difference in the lives of kids."
The board voted 6-1 in favor of the contract. Member Scott Morgan said he didn't question the integrity of KU's program, but couldn't vote to launch a new program in lean budget times.
No comments
Commenting is turned off for this story.