Workers: Health options too costly
JANESVILLE Several Janesville School Board members expressed dissatisfaction Thursday with the way district administrators are presenting health-insurance options for employees.
The district is working on a new health care system that will result in employees paying more for their health care starting July 1, when current union contracts run out.
If Wisconsin Act 10 is upheld in the courts, the school board will be able to impose the costs without negotiating new contracts.
Board members Kevin Murray, Karl Dommershausen and Dave DiStefano complained about the process.
Boyd Consulting Group, the district's insurance consultant, has presented two health plans employees could choose. Representatives of the various employee groups met for the second time Thursday night with the school board to discuss those options.
Three employee representatives expressed concern that higher costs would severely affect their members.
Terri Rauscher, a physical therapist representing workers who are not in unions, said some members of her group are considering their options in the private sector.
Rauscher suggested the district needs to offer less expensive options if it wants to keep good employees. Jim Dulin, who was representing maintenance workers, and Donna Stenner, chief steward for the union representing secretaries, clerks and aides, expressed similar concerns.
District officials have stated that retaining good employees is one of their top goals as they set benefit levels and workplace conditions that would start next school year.
The discussions have not included an exclusive provider organization with either Mercy Health System or Dean, Murray said. Such plans steer employees to providers in a limited network, but they offer cost savings in exchange.
"I need more options than just a cost shift to the employees," Murray said.
Bill Boyd said he discussed those options with Dean and Mercy and found that the reduced costs would be comparable to the discounts the district already gets through The Alliance, a health-care buying cooperative the district belongs to.
Murray said after the meeting that he was not satisfied and would investigate the matter. He said he helped negotiate an EPO for city of Janesville workers when he was a firefighter, and that improved coverage while lowering costs.
The entire board could direct the administration to seek other options, Superintendent Karen Schulte told Murray.
Board member Kristin Hesselbacher suggested the board discuss this at its meeting Tuesday.
Board President Bill Sodemann said the board could do so but would have to be careful about making decisions because that could be construed as an unfair labor practice in the wake of a court ruling that much of Act 10 is unconstitutional.
Murray said he's not opposed to employees paying more for insurance, but he wants to see options for saving money at the same time.
DiStefano said he would like to see five or six insurance options, with cost estimates, not just two. Limiting the health-care network, as an EPO does, should be explored further, DiStefano said.
Dommershausen said he was "shocked" when he saw how much money employees might contribute.
If the goal is to regain the best and brightest teachers, "I don't think this does it," Dommershausen said.
Just how much employees will pay remains uncertain. Sodemann said the original figure of about $7 million coming from 1,113 employees who are covered by district insurance was high and most likely will be "substantially" lower. He did not elaborate.
The board and employees will have another insurance meeting, Sodemann said. No date was set.


Sep 22, 2012 at 1:21 p.m.
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Oreally said, "Look, the entire country needs to get serious about containing health care costs..."
I'm glad to see other people recognizing that healthcare is an issue that affects the entire country. The place to address it is not on an employer by employer, individual by individual, state program by state program basis. The answer is a national, single-payer system in which insurance companies (and their profits) are eliminated from the equation. Let school boards concern themselves with education, not healthcare coverage. Let businesses concern themselves with growing their businesses, not healthcare coverage. Let individuals concern themselves with building a better life for their families and themselves as opposed to living under the threat of bankruptcy due to the high costs of healthcare and uncovered catastrophic illnesses.
Sep 22, 2012 at 1:11 p.m.
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To all young people,
Teaching is not worth it. Unless you are devoted enough to the profession to all but volunteer, you should seek a career field in the private sector. Lord knows that the private sector could use some highly educated, professional types anyway. The benefits are disappearing from the teaching field and the pay is not being raised to compensate for that loss. It is not a profession for you if you want to have a family. I spoke just last week to a married couple, both teachers, and they told me with great sadness that after much thought and creative budgeting that they would not be having children becaue they simply can't afford it. Sure in the short term they could but they would have to sacrifice planning for retirement not to mention completely ignoring saving for the post high school education of their child/children. If you're single and plan on staying that way or coupled with someone and you both plan to never have kids, perhaps you'll be able to get by as a career teacher. Otherwise, I highly recommend figuring something else out. I know that if my advice is taken that the education of our children and, ultimately, this whole nation's future will suffer. Having worked in education and then left it, I can tell you the transation may be difficult, but the relief that comes with knowing that your entire career field isn't under attack by the government and the uninformed masses is a welcome feeling. If you can avoid having to go through that transition by choosing a different career path from the very start, I highly suggest that you do so.
Sep 22, 2012 at 1:04 p.m.
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Look, the entire country needs to get serious about containing health care costs, and this is a good place to begin. Whining and excuse making are not helpful. And turn off the fog machine, people, please.
Sep 22, 2012 at 12:56 p.m.
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Why should they get any surplus back. It is called insurance. I have health insurance but havent been to a doctor in years. Should I get my premiums back because I didn't use it. No When I do finally need it chances are I will draw out more than I paid in that given year.
Sep 22, 2012 at 12:44 p.m.
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true citizen - you are saying that teachers shouldn't get money back, that they pay in for health care, if they don't use as much as projected and the district should be able to just pocket it?? Why not have employers pay 100% then and keep those millions every year! What a joke.
Sep 22, 2012 at 11:46 a.m.
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Milton17...you are only bias of the act 10 decision and your numbers here do not reflect. Perhaps the surplus you speak of can help pay for all of the Milton ipads being used as per the other article on today's gazette page. Teachers will be just fine and they have had it really well off bennies and pay-wise. Very few exceptions. And the children will not be affected like the heart string pullers have tried to suggest, when act 10 finally wins through the liberal judge's attempts to block it.
Sep 22, 2012 at 10:22 a.m.
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The employees currently pay 4% of their health care and do not see any of the money that has resulted in surpluses throughout the years. If employees have to pay more, then they should see that same % given back to them since every year is resulting in a surplus from the health care; instead of lining their Fund 10 balance! Bet that will never happen!!
Sep 22, 2012 at 8:09 a.m.
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Its called,"What you don't know, won't hurt us. "
Sep 22, 2012 at 7:35 a.m.
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Agreed. The Board and the media continually "stir the pot" without explaining the details.
Sep 22, 2012 at 6:36 a.m.
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luv...good questions!
Sep 21, 2012 at 8:38 p.m.
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Here we go again. Will one of the Board members please explain what the Fund 10 balance is made of, why it goes high and low, and what the residual is actually comprised of? How high has the balance gone in the past few years? What is the lowest the balance has been over the past few years? Can you explain the concept of being self-insured, and needing a certain minimum estimated amount of cash reserves to cover a reasonably estimated amount of health related expenses? How many employees are actually covered by the self-funded health insurance plan? Also, please tell us how much money is deducted from an employee's paycheck for family health insurance coverage under the current plan, per month, and how much the new coverage is estimated to be, per month. The general public does not understand these concepts. Is there perhaps a web link you could provide so that we can gain a better understanding? Thank you.
Sep 21, 2012 at 6:22 p.m.
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There's big money in health insurance. The self-insured school district has a fund balance in the tens of millions of dollars thanks to the sale of health insurance (collecting more in premiums than benefits paid out). And now they want to raise the premiums?
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