The Clark County School District (Las Vegas area) is having the same debate many school districts around the country about the cost of health insurance. In Wisconsin, they have a teacher union associated health insurance.(WEA), which is a non-profit insurance company. The cost of the teacher union insurance almost cost more than private for profit insurance companies. Over half of the school districts switched from the teacher union insurance to the for-profit companies and they have saved hundreds of thousands to millions of dollars over the course of a year or more.
In the Clark County School District, there is a battle between the union and administration/school board over who will provide health insurance to teachers (only teachers because the other CCSD unions use for profit companies).
The union does not want to give up the Teachers Trust Health Insurance because they just don't want to. If the Teacher's Trust lose the account, they will go out of business as they only have 1 account- teachers in the district. The union also thinks that the Teacher's Trust do a good job and are cost effective. But the biggest reason is that the teacher's union does not want to go to a for-profit health insurance company. It just pisses the hell out of the union to have to go to a for-profit health insurance because they are soooo evil.
Well, the CCSD put out their talking points a couple of weeks ago and they show that the change would save teachers money while providing the same or better service than the Teachers Trust company.
From the FAQ's:
1. If I were in the District’s plan would I pay more for the new insurance than what I am paying
now?
No, in fact, you will pay less for the comparable plan plus you will have previous benefits restored.
These include Long Term Disability, survivor benefits, and a nation-wide Preferred Provider
Organization (PPO) network, which allows you to see a physician in any part of the United States,
not just for emergency or urgent care. In addition, today, the THT retiree medical plan is so
expensive that most cannot afford it. CCSD retirees enjoy access to the same plans as our active
employees for the same premium payment to the insurers.
2. Is the District negotiating to replace the Teachers Health Trust?
The District makes annual payments to the THT as required by Article 28 of the negotiated
agreement between CCSD and CCEA. It is therefore a subject of bargaining. The District is
bargaining to stop paying money to the THT and instead use the insurance carriers who provide
benefits to all the rest of the District’s employees.
3. Why does the District want to replace the THT?
The District believes that if teachers become part of the insurance program for all employees, the
District can provide better benefits at a lower cost. Because the District uses fully insured plans
there is a much broader choice of plans to choose from that more effectively meet the needs of our
employees such as, Preferred Provider Organization (PPO), Health Maintenance Organization
(HMO), Point of Service (POS) plans, that have lower paycheck contributions, if any, than the
THT must charge. The current THT plan cannot offer this kind of choice without potentially
putting some of its plans in financial jeopardy.
4. Will switching to a private carrier compromise health care for teachers?
No. All of our other employees have for many years received Health Care from large insurance
companies with thousands of physicians, dentists, and eye care professionals.
5. Will the District save money by switching coverage?
Yes. Savings to the taxpayers are in the millions of dollars, monies which will be used to offset
lost positions and potential salary cuts and to fund District programs and operations that enhance
student achievement.
http://ccsd.net/news/pdf/20110919-1944339523.pdf
The list goes on.
Bottom line, our new superintendent, Dwight Jones is taking on the teacher's union and he needs the public's support. This is going to be one of the few times CCSD will be able to save millions of dollars just by going with a different health insurance company.
It is quite clear, the health insurance company change will benefit the teachers and the school district. The only people it will harm will be those with a vested interest in keeping a high price company in business and those who hate the notion of having a for profit health insurance company.
Hopefully, Superintendent Jones will not back down to the unions and will continue to fight for the for-profit health insurance company that will benefit both the teachers and the district.
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