Cape Girardeau School District employees face higher health insurance premium

Employees in the Cape Girardeau School District would pay more in health insurance costs under a proposed plan to buy down a nearly 20 percent spike in premiums.

But the deal with the insurer is far from done as the Cape Girardeau School Board hurries to seek last-minute insurance bids, in large part to avoid running afoul of one of its own policies.

The district's insurance provider, Anthem Blue Cross and Blue Shield, reduced its targeted 19.7 percent premium increase for next year to a 10 percent increase by raising deductibles, prescription drug copays and charges for office visits in the district's basic preferred provider organization health insurance plan. Employees in the lower-deductible "buyup" PPO would see the full increase, while members in the higher-deductible plan would see about a 9 percent increase in costs, according to David Johnson, senior benefits consultant for CBIZ Benefits & Insurance Services, the district's benefits adviser. Johnson provided his analysis at a special school board meeting Monday night.

The rate increase triggered a debate, including sparring between board members Tony Smee and Kyle McDonald.

The district this school year will pay about $4.1 million in health insurance costs, more than double what it paid a decade ago. Today, health care benefits make up about 10 percent of the district's budget. With another round of public education budget cuts expected ahead, Smee contends the district needs to get a handle on health insurance expenses, suggesting putting a cap on employee health benefits.

"How long are [the rising costs] sustainable if one out of every 10 dollars is spent on our health care?" Smee asked. "For some reason this has become this untouchable subject."

McDonald countered a cap would be a hardship for Cape Girardeau teachers, who saw their wages frozen this year.

"If teachers have to suck up another 10 percent, you can't put that kind of burden on families that quickly," he said.

Nearly 800 employees are covered under the district's insurance plan, including about 180 retirees. Employee insurance costs have more than doubled in the district over the last decade, up from $3,235 in 2002 to $6,790 this school year, according to the district.

As the board debated how to control costs, it discovered that it has neglected to follow one of its policies, which mandates contracts over a certain dollar amount go out for bid at least every three years. The last time the insurance contract went to bid was when Anthem earned the district's bid in 2005.

The board instructed Johnson to send out requests for proposals, a process the consultant said could take at least three weeks.

It is likely the board won't vote on a bid until the middle of December, giving plan administrators a couple of days to educate employees on the changes and enroll them in the plans. Board member Stacy Kinder suggested sticking with Anthem, saying the district shouldn't press employees to make a quick decision simply because of the board's policy oversight.

Teacher Lesa Hinton, a member of the Community Teachers Association, said the tight timeline will present a challenge to employees weighing difficult insurance decisions.

"But if [the insurance bid[ comes in less than it is now. it would be worth it," she said.

mkittle@semissourian.com

388-3627