Hernando County School District's health insurance premiums to rise 14.5 percent :Tony Marrero
By: Health Insurance
Submitted: 2009-09-28 16:31:38 | Word Count: 822
Hernando school officials figured they could talk their insurance carrier down from a shocking 21.5 percent hike in premiums
They did. After negotiations with Blue Cross and Blue Shield of Florida in recent weeks, the increase will be 14.5 percent — still a significant jump, district officials say.
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"We feel better about it," said Heather Martin, executive director of business services. "We're certainly not pleased, but we also understand this is a nationwide issue."
When asked about the negotiations and the lower figure, Blue Cross spokesman Mark Wright e-mailed a statement.
"(Blue Cross) continues to work with Hernando County Schools in regards to their claims experience and benefits in order to offer multiple options for consideration," Wright said.
Now, the district and the local unions are in talks to hash out how the higher costs will be covered. Under its most recent offer, the School Board would pay $55 more per employee per month than last year. That would bring the total cost to the district for the second half of this fiscal year and the first half of next year to $14.6 million — a total increase of $1.73 million.
The cost to employees in the HMO single plan would increase by $11.92 per month. About 1,740 of 2,600 total enrollees opt for that plan, making it the most popular of the eight offered by the district.
The Hernando Classroom Teachers Association had asked the board to pay $268,000 more than what was offered. Now, the union must provide a counteroffer.
The difference between the district and the union is about more than money, though. It's philosophical. Under the current policy, the district contributes the same amount to each employee regardless of the plan. The union wants the district to kick in additional money for family insurance plans to give relief to family budgets, said HCTA president Joe Vitalo.
"We're trying to keep them down to around a 10 percent increase," Vitalo said of the family plans. "Under the current board proposal, some are looking at 17, 18 percent."
For example, the monthly contribution by an employee with children on the HMO plan would go from $345.94 to $417.72; employees on the HMO family plan would see their contributions rise from $813.04 to $939.96.
Some districts have already taken similar approaches, Vitalo said.
Martin countered that some districts that had similar policies have changed course to save money in tight times.
The Hernando United School Workers Union, which represents non-instructional employees, seeks to limit the HMO single plan increase to $10, Martin said. Colin Davies, president of the union, did not return messages seeking comment.
Martin noted that teachers got an average 4 percent pay increase this year after the board agreed to reduce the number of pay "steps." That is on top of a 2.3 percent raise last year, when the board also agreed to cover an additional 1.5 percent of insurance costs.
Non-instructional employees got a 2.5 percent raise.
Despite the differences, both sides characterized the talks as cordial.
There would be no increases in deductibles or copayments for any plan. The district's insurance committee reasoned that a dramatic increase in copayments for, say, an emergency room visit would not be worth knocking off a few percentage points from premium costs, Martin said.
The School Board is slated to consider the latest proposals during an Oct. 6 executive session.
Board member James Yant said in his opinion the district is successfully walking a fine line between fiscal prudence and generosity to employees.
When asked in July about the 21 percent increase, Wright of Blue Cross said the company uses past claims history to project premiums. Blue Cross paid about $14 million in claims last year.
The district has had a relatively high number of catastrophic claims in recent years, Martin said. But she also has noted that the district has been "punished" for the lack of urgent care facilities in the county. That forces employees to go to hospital emergency rooms, an expensive way to get urgent care that drives up the district's claims.
Martin says she's hopeful that a new urgent care center in Brooksville and at least two others in Pasco County will help.
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