Valley Schools was created in 1987 by school districts pursuant to ARS 11-952 as an Arizona nonprofit corporation to allow public entities to jointly purchase insurance and pool insurance risks. The Valley Schools Management Group (VSMG) is an Arizona nonprofit corporation which provides professional management of insurance pools. VSMG has several trusts and pools it manages, including the Valley Schools Worker’s Compensation Group (VSWCG), the Valley Schools Insurance Group (VSIG) which handles liability insurance, and the Valley Schools Employee Benefits Group (VSEBG) which provides health, dental, life, short term disability, vision, COBRA, and more. HPACT stands for Health Programs for Arizona Cities, Counties, and Towns. HPACT is a Valley Schools-exclusive program crafted for the unique employee benefits needs of Arizona governmental agencies.
The Valley Schools Management Group (VSMG) administers the financial, accounting, audits, investments, personnel, human resources, budgeting and other oversight of all the Valley Schools organizations under its umbrella. Valley Schools Employee Benefits Group (VSEBG) provides health, dental, life insurance and other benefits. Valley Schools Workers’ Compensation Group (VSWCG) provides workers’ compensation insurance. VSIG is the Valley Schools Insurance Group which provides liability insurance. Health Programs for Arizona Cities and Towns (HPACT) is a program crafted for the unique employee benefits needs of Arizona governmental agencies.
Valley Schools combines employers into a larger group which gives them much more purchasing power in the purchasing world. In addition, Valley Schools employs specialty contract negotiators familiar with each line of insurance that are able to negotiate better contracts and pricing vs an individual employer.
Valley Schools is created by governments, for governments. It is an Arizona nonprofit corporation and as such only needs funding to support its small number of accounting, service, contracting and support staff, along with paying for audits and additional services. Valley Schools does not have stock holders or make profits. By eliminating profit margins as an Arizona nonprofit corporation, the administrative costs for Valley Schools are well below the marketplace.
Valley Schools is independently audited each year by a CPA firm and is overseen by the Arizona Department of Insurance. All Valley Schools meetings are open to the public. Audited financial reports are available to all members. Each year independent consulting firms also check on reserves and liabilities to ensure they are above standards in the industry and claims audits are done independently to insure that claims are properly processed. The Arizona Department of Administration conducts regular examinations of Valley Schools.