Committee releases report detailing cost savings through mergers in school health care, prescription drug plans

HARRISBURG – The Pennsylvania Legislative Budget and Finance Committee released a study today detailing millions of dollars in potential savings if school districts pool resources for health care plans, according to Senator David G. Argall (R-Schuylkill/Berks).

“This is a roadmap for real savings for taxpayers,” Argall said, who authored Senate Resolution 250 last session requesting the study. “We have to control school district spending and ever-increasing property taxes. This is about economies of scale – We can achieve considerable savings by enacting the suggestions in the report.”

The Pennsylvania Legislative Budget and Finance Committee worked in conjunction with the PRM Group to compile a final report presented to lawmakers. The report outlines several areas where tax dollars could be saved, specifically:

  • More than $200 million could be saved annually if school districts were to join a statewide health care program.
  • Administering a statewide pharmacy program would save $72 million during the program’s first year.
  • $100 million in cost savings would occur if all school districts participated in a health trust or consortium, or if a statewide insurance pool were developed.

Two-hundred-sixty-nine of the state’s 500 public school districts participated in the study, including 27 out of 37 healthcare consortiums established from throughout the state.

Senator Argall’s statement before the committee

Entire committee hearing

You can read the report here.


Back to Top