Central San gives up its crown

In 2015, we wrote about the unfairness of a proposed rate hike by Central San, while the district was simultaneously spending ratepayer money on things like “Rolls-Royce-style health, dental and vision insurance plans that cost as much as $36,868 a year.”

Last Monday, September 9, 2019, we revealed that, “48 district employees received medical plans that cost at least $51,148 each. Plans that expensive almost certainly reflect price gouging, rather than additional value provided…”

We also noted that such excess led to Central San having the highest average healthcare cost of any major government agency statewide.

Today, in an article about our study, the East Bay Times reported that Central San has finally put an end to the madness, and “has switched to CalPERS to purchase healthcare plans, which will save $5.8 million for the 2019 fiscal year.”

While the new plans are still quite pricey, the millions of dollars in savings the district achieved from simply shopping around for the best price is a much needed step in the right direction.

For more reaction to our just-published study, Wildly inflated health costs are costing California taxpayers $3.3 billion annually, be sure to read this piece from the Modesto Bee, or listen to our interview on the John and Ken Show by clicking here. (Our segment starts at around the 66 minute mark.)