HEALTH INSURANCE 101: Bid it out, please

I would hope that someone in the Ripon School District, and the Ripon Education Association, would read these articles and consider the ramifications here in Ripon:

SOURCE: Beloit Daily News
Switch from Wisconsin Education Association to Dean or Mercy would save district money
A change of insurance providers for teachers in the School District of Beloit Turner could lead to them receiving what the Board of Education calls “substantial” raises.

Representatives from both parties met Wednesday for the third time since bargaining for the 2009-11 contracts began March 30.

“In some cases, these will be extra generous increases,” board Vice President Doug Clark said.

Turner Education Association President Shelly Crull-Hanke made clear the board is still offering a 3.8 percent salary and benefits package with a shift in dollars.

The board recommended the union switch from the Wisconsin Education Association’s insurance to a dual-choice option that would let teachers choose between Dean and Mercy.

The current provider’s rates are projected to grow next year by nearly 8 percent: $9,563 for a single plan and $21,660 for a family plan. The board pays 100 percent of teachers’ insurance premiums.

Dean’s rates would mean a drop in 21.5 percent while Mercy’s would mean a decline of about 26.5 percent.

Other districts - Brodhead, Evansville and Parkview - have already dropped the Wisconsin Education Association insurance. Superintendent Dennis McCarthy also noted the administrative and support staff employees plan to switch to the dual-choice option.

The union requested a copy of the proposed policies to compare the insurance plans.

“The TEA feels that there are still many unanswered questions and need to be more informed with the insurance change proposals,” Crull-Hanke said. “Until more information can be obtained, we cannot make a decision at this time.”

While the board remains firm in offering a total salary and benefits package increase of 3.8 percent for both years, McCarthy said, the rollover of insurance savings would go toward the salary schedule and mean even higher percent increases.

The more people who select Mercy “would mean more savings,” he said. “That would be more money in the salary schedule.”

The schedule assigns wages based on a teacher’s level of education and longevity with the district.

Under conservative projections, teachers would see a 7.062 percent per cell increase in year one and a 0.819 percent per cell increase in two. This would average to about 3.941 percent over the two years, McCarthy said.

He noted this is close to the union’s request of a 4 percent per cell increase.

As an example of how the raises would change salaries, Turner’s starting wage would increase from $32,677 to $34,985, and the top-end wage would grow from $59,739 to $63,958.

“That’s huge dollars,” McCarthy said. “That’s dollars those people haven’t seen.”

He acknowledged taxpayers will want to know how the district can justify such raises at a time when the unemployment rate is nearing 20 percent and the district is facing a projected $200,000 deficit next year.

“If you’re willing to change your insurance the answers are there,” he said. “We’re not talking one more dollar than we initially offered.”

Crull-Hanke stressed teachers’ families are affected by the recession, too.

“We’re all in that same boat,” she said.

If the union declines the board’s offer to change insurance providers, the board would recommend a 10 percent monthly co-payment of the premiums.

The union is waiting to set its next negotiation date until members have a chance to hear from insurance representatives and conduct a membership meeting to discuss their options, Crull-Hanke said.

The 2007-09 bargaining cycle lasted about six months. The contract increased the salary and benefits package by 4.39 percent for the first year and 4.2 percent for the second, which was up from the district’s initial offer of 3.8 percent.

SOURCE: Kenosha News
Consolidating insurance could generate savings for Wilmot High School
WILMOT — A savings of $321,784.71 can be realized if all Wilmot Union High School employees change to a comparable health and dental insurance plan offered by a different provider, the Board of Education learned Tuesday.

The information was gathered as part of a multi-district study spearheaded by Central High School Superintendent Scott Pierce. Wilmot Administrator Bill Heitman said the two companies who can provide matching policies have guaranteed their quotes through the end of the year to allow for the district to negotiate a change.

“It is just a tremendous savings,” Heitman said. “This is something we should really look at.”

Employees are classified into four categories at Wilmot: teaching staff, administrative and administrative secretary staff, non-certified staff and a non-certified staff group of recent hires that get 55 percent of its health insurance covered.

The unionized staff is currently getting health insurance through the Wisconsin Education Association Trust Fund. Delta Dental and the Wisconsin County Association Group Health Trust have provided a comparable policy based on the specification in a request for proposals sent out to 20 different insurance companies.

Heitman said the district can start with any size group of employees and should encourage participation. He said employees would see no impact in services.

If all employees switch to Delta Dental, the district would save $22,407.02. If all employees except those in the teachers’ association made the switch the savings would be $6,388.94. If all employees switch to the WCA trust for health insurance, the district would save $299,377.79. Minus the teachers, this savings drops to $87,339.47.

Heitman said the Wilmot Teachers Association has been provided with the information. It is also possible teachers could get better insurance — one with lower deductibles — and the district would still see more than a $200,000 savings. Also, the savings can be turned into a revenue source for teacher salary increases.

School Board president Nadine Slowinski asked if a history of policy increase rates was included. Heitman said administrative costs increase at a lower percentage under the WCA policy.

Heitman said a recommendation for action will most likely come before the board in June.