By Jennifer Eisenbart
Editor
Officials with the Burlington Area School District wanted to stay with the Wisconsin Group Health Trust for the district’s health insurance.
But a 25 percent hike in premiums doesn’t make that feasible.
On Monday, the School Board heard two different proposals outlined by Jeff Ireland, the representative from M3 – the district’s new health insurance consultant.
Ireland said the district had directed him to attempt to negotiate with the Group Health Trust, with the caveat that a 25 percent increase is unacceptable.
Instead, he worked with the WEA, WPS, Humana and Anthem Blue Cross to try and keep the benefit levels the district already had in place with competitive bids. WPS declined, and Anthem Blue Cross came back with a narrow coverage area that excluded several hospitals the district uses – including Froedtert and the Medical College of Wisconsin and Wheaton Franciscan.
The bids from Humana and WEA are competitive with each other, but Ireland did caution that the rates are lower in hopes of drawing the district’s business – and they will likely go up next year.
However, as Ireland outlined in the informational session, one of the current options for the district’s health insurance will go away – the PPO plan that about 80 district employees currently “buy up” to, or pay a portion of their own premium.
Currently, the district also has two high-deductible, HSA programs available. Those would remain, but with the switch to Humana or WEA, the deductible amounts would be lowered.
Ireland outlined two different plans. One would involve no additional cost to the district, while the second option would cost the district about $97,000 more a year. Both eliminate the PPO plan.
The first option – which would not increase district costs – would have a $1,500 deductible for individuals and $3,000 for families. The second option would have the district absorbing some cost of the increase with deductibles of $1,350 for an individual and $2,700 for a family.
Humana’s offer costs the district a total of $4.4 million a year, while the WEA offer is $4.3 million a year.
No action was taken at the meeting, but the board asked for some addition information regarding the “experience cost” – what the district is currently using for health insurance and its impact on the costs.
The board will take action at next Monday’s meeting.
Non-renewal notices
The School Board approved the preliminary notice for one non-renewal Monday night. BASD Superintendent Peter Smet said it is for a reduction in hours for one full-time position.
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