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Laguna Beach USD review: employee health premiums set too low in most years, district absorbed the cost
Summary
A preliminary district review found employee contributions for health plans were set below contractual levels in nearly all sampled years, shifting hundreds of thousands of dollars to Laguna Beach Unified School District and prompting recommendations to change rate‑setting and monitoring practices.
Laguna Beach Unified School District officials and outside reviewers told trustees on Sept. 25 that the district has for several years been charging employees less than the collective bargaining agreement requires for health insurance, leaving the district to cover the difference.
Michael Bishop, one of two independent reviewers engaged by the district, told the board the preliminary review of four years of rate‑setting showed the employee portion was set too low “in 97 percent of the cases,” a condition that contributed to budgetary overages in recent years. "In many cases ... small amounts; in some cases, large amounts," Bishop said, noting examples where…
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