Report: Indiana could save $450M on school insurance

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A new report says health insurance for Indiana's public schools and universities could cost at least $450 million less annually if they joined the state's plan for public employees.

But most of the savings would come through stingier health plans or higher out-of-pocket expenses for teachers, professors and other employees. The analysis from a consulting company found that it would cost public schools and universities about $270 million to get the same level of insurance they're getting now.

The report said the state would save money by pooling more employees in its health insurance plan and through other methods.

The idea of moving public schools and universities to the state's health insurance will likely be an issue in the 2011 legislative session as lawmakers work on a new two-year state budget.

The State Budget Committee met  Wednesday to discuss the report. Senate Appropriation Chairman Luke Kenley, who chairs the committee, says lawmakers are looking for all ways to stretch tax dollars given the prolonged recession.

Legislation passed in 2009 ordered the independent analysis of health insurance benefits.

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