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Board praises new employee health clinic as officials explain insurance fee changes
Summary
District leaders celebrated a new no-cost employee health clinic and explained UnitedHealthcare administrative fee changes and rebate policy impacts; staff said ASO fee increases may cost roughly $250,000 annually but retained rebates could return substantially more to district health funds.
Okaloosa County School District leaders used the workshop to highlight a newly opened employee health clinic and to explain recent administrative and rebate changes with the district's health plan.
Sarah Cato, the district's risk management director, told the board changes in state appropriations now allow self-funded plans to retain full medical and pharmacy rebates. She said UnitedHealthcare raised its administrative-service (ASO) fees during renewal and added charges for services such as prior authorizations and paper claims. "That part wasn't brought forward to us at the time of renewal," Cato said, describing the new charges as a pass-through cost the district will pay.
Cato reported an estimated ASO cost increase of about $250,000 per year but said retained medical and pharmacy rebates could produce substantially larger returns — staff cited a potential return figure mentioned during discussion of up to $3,500,000 — and that funds would be allocated to district health funds to support employee services. Board members and the superintendent praised the clinic's ribbon-cutting and reported positive employee utilization and feedback. Cato invited the board to an open house on April 25.
Board discussion asked for clarification on prior practices and how the district will use rebate proceeds; Cato said prior to the appropriations change the district had received partial pharmacy rebates but not full medical rebates. No formal board action was taken on insurance plan changes at the workshop; staff said further details and figures would be provided in budget materials.
