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MCOE staff: StayWell JPA to discontinue July 1 amid high-cost claims; district evaluating alternatives
Summary
Business services staff told the board that the StayWell joint-powers authority will be discontinued July 1 because cost claims have eroded reserves; staff described potential alternative pools and noted employee coverage will move to open enrollment under a new arrangement.
Heather Reynolds delivered the business and administrative services update and told the board the StayWell JPA — a self-insured pool that includes 11 school districts and MCOE — will be discontinued effective July 1 because a string of high-cost claims has reduced reserves.
Reynolds said the committee overseeing StayWell voted in January to discontinue the pool and begin transitioning members to alternatives; she described options being evaluated, including the Resnick JPA (larger pool) and the California Valued Trust (CVT). "There has been some really high cost claims that have been coming out over the last couple of years. 1 claim for 1 service was, I think, $2,000,000," Reynolds said, noting the financial pressure on the self-insured group. She said the transition would be handled through open enrollment and that staff will provide details after the full committee meets.
Reynolds also noted facilities work (roof repairs) and said staff will return in March with a more refined solar project for board consideration. Board members were notified of potential impacts to employee coverage and enrollment processes and asked to await the committee’s recommendation at the next full meeting.
