Board Divided Over Supplemental Accident Insurance

Posted on 08 February 2012

By Claire Walla

Ever since the need for student accident insurance was brought into question last year, it has been a hotly debated item among Sag Harbor School Board members.

Last year, the board voted to eliminate the service (which is not required by law). However, at the urging of some Pierson parents, the school has been asked to reinstate it.

Student accident insurance is a policy that provides limited coverage if a child is injured while at school or during a school activity.  This is different from liability insurance — which the school is required to carry — which would cover the cost of a lawsuit if it was ruled there was negligence on the part of the district.

“We are the owners of the biggest house in the community,” said school board member Sandi Kruel. “We open up our door every single day and we have high-risk activities. For us not to protect ourselves and the children is totally appalling to me.”

At a school board meeting on Monday, January 6, the district’s director of business operations, Janet Verneuille, presented six student accident insurance plans for the board to consider, only two of which she said were viable. A company called Chartis offers one option at $46,453 per year, while Pupil Benefits — the company the school district used up until last year — is $39,521.

According to Verneuille, the problem with Pupil Benefits had to do with “reasonable and customary” costs, which are the costs the insurance company itself determines for a medical procedure. If a family doesn’t have medical insurance, student accident insurance will gauge the amount of money it pays for services based on these “reasonable and customary” estimates.

Because medical expenses are relatively high on the East End, Verneuille said the correlation between the two left many families without much of a financial return.

“The cost benefit wasn’t there,” she said.

Board member Walter Wilcoxen noted that issues surrounding Pupil Benefits arose when a parent in the school district complained of receiving only $300 back on a $3,000 medical bill.

However, board member Chris Tice said that discrepancy was not always true.

“I’ve heard from parents who said they benefited [from student accident insurance],” she said. “Not everyone who filed claims was dissatisfied.”

Plus, she added that student accident insurance could be helpful for those families that don’t currently have health insurance.

“How is that the responsibility of the district as a whole?” Wilcoxen countered. “The primary question is whether or not it’s our obligation to do this. I think it’s the parents’ obligation to provide health care for their children.

Plus, he continued, “For what you’re getting back, it’s not worth it.”

Board member Gregg Schiavoni agreed.

“I think it’s a perk if we carry it,” he stated. “But, for what it’s costing the district to carry this insurance, the payout isn’t worth it. We’re barely under the tax cap. If we want this policy, we’ll have to make cuts to stay under the cap.”

Kruel noted that student accident insurance would come out at about $45 per student, which she said was “miniscule” in the grand scheme of things, considering the school’s budget is currently proposed to come out to $35 million.

She added, “If the bus proposition passes, we’ve got hundreds of thousands of dollars to play with.”

(Part of the 2012-2013 budget presentation included a proposal for the district to purchase six new buses, which Verneuille estimated would save the district up to $1 million over the next 10 years.)

By the end of the meeting, the board was not ready to make any decisions as to whether or not to adopt a new student accident insurance plan until finding out what the “reasonable and customary” rates would be for both Chartis and Pupil Benefits. Verneuille said she would reach out to the insurance companies and try to provide updates at the board’s next business meeting.

In other news…

The Sag Harbor School Board approved plans to tear out the existing maple-wood floor in the Sag Harbor Elementary School gymnasium and replace it with a rubber material called “pulastic.”

According to Principal Matt Malone, a thin layer of concrete beneath the current wood floor cracked because of a steam leak from a pipe beneath the gymnasium. This ultimately caused a portion of the wooden surface to “bubble up,” he said.

“Some of that same problem, though to a lesser scale, has been detected in other segments of the floor,” he explained.

Malone and the district’s buildings and grounds director, Montgomery Granger, said the pipes have been repaired. But the floor — which is relatively new, having been paid for by a bond resolution in 2008 — definitely needs replacing.

District Superintendent Dr. John Gratto said the floor will be replaced at no cost to tax payers because it is considered a defect and is covered by the school’s insurance.

While several board members lamented the loss of the gym’s relatively new maple flooring, Malone said the Pulastic surface is more durable and easier to maintain than the maple wood.

“Every day we have about 500 people coming into the gym for morning program,” Malone added. “That wear and tear is something that’s been problematic for a long time.”

As for the timeline of the project, Dr. Gratto said construction can begin as soon as next week and run through winter vacation. The goal, he added, is for the school ”to open up on the 27th with a new gym floor.”

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