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Senator Argall

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Harrisburg Office
Senate Box 203029
171 Main Capitol
Harrisburg, PA 17120-3029
717-783-8657 FAX


District Offices

One West Centre Street
P.O. Box 150
Mahanoy City, PA 17948
570-773-1675 FAX

61 North Third Street
Hamburg, PA 19526-1501
610-562-6895 FAX
(Shared with Representative
Jerry Knowles)

100 North Centre Street
Pottsville, PA 17901
570-622-6629 FAX
(Shared with Representative Mike Tobash)

Spring Township
2850 Windmill Road
Spring Township, PA 19608

237 West Broad Street
Tamaqua, PA 18252
570-952-3374 FAX
(Shared with Representative
Jerry Knowles)

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Merging school district health care, prescription drug benefit plans could save taxpayers millions annually

The Legislative Budget and Finance Committee (LBFC), in conjunction with PRM Consulting Group, completed a study today that I requested under Senate Resolution 250 to look at ways to save considerable tax dollars by merging school employee health care and prescription drug benefit plans into a statewide plan or regional plans. 

You can watch my statement at today’s public hearing here

12/9/15 - Remarks at Legislative Budget & Finance Committee Hearing

The report provided the cost savings associated with combining public school employee health care plans into either a statewide plan or regional plans. Given the fact that in theory, there are 500 school districts with 500 different health care plans for their employees, I believe that Pennsylvania and its citizens would receive significant cost savings if we were to follow through with this plan. 

So what are some key findings from the LBFC and PRM Consulting Group? 

Based on their examination using data from the following sources: 1) survey responses from 269 schools that chose to participate in the study; 2) responses from 27 out of the 37 healthcare consortiums; 3) data from significant health insurers; and input from key stakeholders, they reported the following significant findings: 

  • 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, and if a statewide insurance pool were developed.
  • Several school districts already participate in a consortium for better rates.

Moving forward, I am eager to work to bring this plan into action as we look for ways to save money for the state and its citizens. 

If this report leads to savings over $100 million, that will put a dent in the total amount needed in order to eliminate school property taxes and provide taxpayers with valuable savings.

You can watch the committee’s full presentation on this report here.


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