Senator Patrick M. Gallivan, (R-C-I, Elma) says legislation (S.2675) he sponsored to permit the Depew Union Free School District to establish an insurance reserve fund in order to pay expenditures related accident and health insurance claims has been signed into law. The legislation was drafted at the request of school administrators.
“Like many other school districts, Depew has moved to a self-insurance model, which has proven to be financially beneficial, but under these programs, year to year costs can be unpredictable,” Senator Gallivan said. “This legislation removes current statutory restrictions and allows the district to establish a reserve fund to pay health care claims.”
In an effort to contain costs associated with traditional premium based insurance plans, more and more school districts are adopting self-insurance programs. Allowing districts to establish an insurance reserve funds allows administrators to efficiently manage finances and minimize the impact claims and revenue fluctuations.
The bill was sponsored in the Assembly by Assemblymember Monica Wallace and was unanimously approved by the Legislature. It was signed into law earlier this week by Governor Cuomo.