Health insurance consortium switches plans from Medical Mutual to Anthem for cost savings

The Orange City School District Board held a regular meeting on May 1, 2025, where key topics included staffing contracts and a significant change in health insurance providers aimed at reducing costs.

The board approved a contract with the Educational Service Center of Cuyahoga County for the 2023-2024 school year. This agreement includes the provision of a residency officer, an intervention specialist, an administrator, and a paraprofessional. The decision to contract these positions was explained as a necessary measure to support students who are out of district, rather than hiring staff directly.

A major highlight of the meeting was the decision to switch the district's health insurance plan from Medical Mutual to Anthem, effective April 1. This change is expected to save the district approximately 10% in costs, which is crucial given the financial pressures from rising medical expenses. The board discussed the depletion of reserves over the past two years and emphasized that this switch is a step towards financial stability.

Despite the change, employees are not expected to notice significant differences in their covered services, as a disruption analysis indicated that 99% of providers in the Medical Mutual network are also in the Anthem network. The board acknowledged potential challenges, particularly with specific providers, but expressed confidence in Anthem's commitment to expanding its network.

The financial implications of this decision are substantial, with the consortium spending around $120 million annually on healthcare across 20 districts. The board noted that the transition to Anthem is not only a cost-saving measure but also aims to improve the overall quality of care for employees.

In conclusion, the meeting underscored the district's proactive approach to managing staffing needs and healthcare costs, ensuring that both students and employees receive necessary support while maintaining financial integrity.