Rye Neck Union Free School District – Health Insurance Cost Savings (2022M-164)

Issued Date

February 24, 2023

Audit Objective

Determine whether Rye Neck Union Free School District (District) could achieve cost-savings by offering a health insurance buyout incentive (buyout).

Key Findings

District officials (officials) could achieve cost-savings by offering a buyout in lieu of health insurance coverage.

Total savings could range between approximately $130,000 and $190,000 annually if the District offered family plan coverage buyouts of $4,500 or $6,000 and individual plan coverage buyouts of $2,000 or $2,500.

Key Recommendation

Consider offering a buyout to help reduce costs.

District officials generally agreed with our recommendation and indicated they will consider our recommendation.

Background

The District serves the City and the Town of Rye in Westchester County. The District is governed by an elected six-member Board of Education (Board) responsible for the general management and control of financial and educational affairs.

The Superintendent of Schools is responsible for the District’s day-to-day management under the Board’s direction. The Assistant Superintendent for Business and Finance (Assistant Superintendent) oversees the District’s business operations, including health insurance coverage.

The District participates in the State-Wide Schools Cooperative Health Plan (SWSCHP). At the time of our audit, the District had not negotiated a health insurance buyout to offer to their employees.

Audit Period

July 1, 2021 – June 30, 2022