Franklin Central School District officials saved more than $800,000 in health insurance costs by switching carriers and offering employees a buyout incentive, according to an audit released today by New York State Comptroller Thomas P. DiNapoli.

“In a time of limited resources and increasingly tight budgets, school districts need to make every dollar count,” said DiNapoli. “I commend district officials for their proactive approach and implementing cost-saving measures that benefit both taxpayers and employees.”

In January 2013, school officials in Franklin assessed the benefits and costs associated with the district’s health insurance coverage and pursued a lower cost alternative. This evaluation allowed the district to find a new insurance carrier that was less expensive and which offered employees two additional health plans that provided equivalent or better coverage than the previous plan.

When auditors compared the district’s former health insurance carrier’s rates to the new carrier, Franklin CSD saved a total of $543,000 from 2013 through 2015.

During the same time period, the district saved an additional $283,000 by offering 25 employees an annual health insurance buyout incentive. The buyout only cost the district $38,000. Had it not offered such an incentive, the district would have paid a total of $321,000 in health insurance premiums for these individuals.

The district’s health insurance expenditures averaged $705,000 per year over the last three years.

For a copy of the audit, visit: http://www.osc.state.ny.us/localgov/audits/schools/2016/franklin.pdf