Janesville schools told to cut insurance spending

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Beth Wheelock
August 20, 2008

Insurance consultants say they do not know why the Janesville School District's insurance claims are down. Nearly $30 million in charges were turned in in Janesville, more than $15 million of those were denied and nobody complained.

A representative from the teachers union says, "only a few complained...a few always complain...there was no increase in the number of complaints and the results are statistically improbable."

One consultant told the school board yesterday "it's a perfect storm." There are three factors leading to part of the savings: more claims not medically necessary than anticipated, more medicare or medicaid claims and alliance insurance had various unanticipated savings.

The consultants recommend the school district cut expenditures for insurance 10 percent from roughly $18 million to $16 million.

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