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Representatives of school workers say higher insurance deductibles and co-payments would be more palatable.
By ROBERT KING
© St. Petersburg Times, published December 19, 2000
BROOKSVILLE -- The school district's two labor unions -- one for teachers, the other for blue-collar workers -- are vehemently opposed to any increase in their health insurance premiums, even if it's as small as $10 a month.
Union representatives said higher premiums already have devoured much of the pay raises workers received this summer. And they say many will not be able to afford health coverage if the rates go up further.
"A death sentence for the insurance" is how it was described by teacher representative Cynthia Moore, a fifth-grade teacher at Spring Hill Elementary School.
Both the teachers and the Hernando United School Workers, which represents bus drivers, custodians, aides and other support staff, said during a meeting Monday of the district's health insurance committee that they will acquiesce to some insurance hits.
Specifically, the unions would accept a new (probably $500) deductible and higher co-payments for items such as medical lab tests, emergency room visits and hospital stays.
They also agreed that it may be necessary to raise the limit on out-of-pocket costs employees pay for serious illnesses from $1,000 to $2,500 or $3,000.
Costs for doctor visits and prescription drug costs would be unaffected.
In all, the changes would generate no more than $700,000 of the $2-million in savings officials say is needed over the next 18 months to make the district's self-insurance plan pay for itself.
Since the district dropped its private insurer in 1999, school district employees have racked up more medical costs than the School Board and its employees have paid in. It currently serves about 1,850 people.
The board is scheduled to discuss the health care dilemma, including the position of the labor unions, today at a 3 p.m workshop. The board is expected to make a final decision in January. Any changes, which could go beyond the unions' wishes, would take effect Feb. 1.
Last year, when health costs were higher than expected, the board pumped $700,000 into the plan. But there is no such cushion this year.
The district's cash reserve is depleted, and its operating budget appears to be overspent, leaving the board no room to absorb higher health costs.
Currently, employees with individual coverage pay premiums of $20 a month, though families pay much more. A simple visit to the doctor requires a $25 co-payment. Generic drugs cost school workers $15; brand-name drugs $20.
Edd Poore, the school district's personnel director, said he doesn't think a $5 increase to the monthly premium is unreasonable. That alone would generate almost $175,000 in savings. And he warned that cuts not made now will have to be made later.
"Health insurance can no longer be built around what people can afford," Poore said.
But Colin Davies, a Westside Elementary custodian, said some of the people in his union who make $7 an hour and work a six-hour day would consider that a big hit. "Whenever you mention $5 more or $10 more, they have to give something up," he said. "What do you give up?"
Union leaders say that sticking to increases in the deductibles and the co-payments -- while avoiding a monthly premium increase -- puts the burden on people who use the insurance. Those who remain healthy or avoid doctor visits for minor illnesses would pay nothing extra.