School employees pay more, get less

Published 12:00 am Monday, May 13, 2002

By LEONARD GRAY

RESERVE – Employees of the St. John the Baptist Parish public school system will pay more and get less, under a newly approved health care package unanimously approved by the school board.

The board insurance committee returned a unanimous recommendation for the renewal of United Health Care’s package, where monthly premiums will go up by $33.

However, a portion of that will be picked up by the school district, though it is not known yet how much.

At the same time, the 950 employees and 100 retirees covered in the plan will have higher deductibles and lower prescription drug benefits under the plan, with generic drugs going from $5 to $10, preferred drugs from $20 to $30 and non-preferred drugs from $45 to $60.

“You had to trade off benefits to keep your rates down,” commented board president Dr. Gerald Keller.

Felix Boughton, executive director of business for the school district, further explained, “Medical costs have been increasing 15 percent every year.”

The total annual premium, under the new package, went up by $676,975 to a high of $6.29 million, Boughton continued.

However, even that is less than many area school districts, such as in St. Charles Parish, where the increase approved with one company was compounded when that company, The Oath, went into bankruptcy and the district had to scramble to find a replacement – at an even higher cost.

The effect on parishes such as St. Charles and St. John the Baptist is considerable, when the school districts are generally the largest single employers in each parish, Boughton said.

In executive session, the 11-member board reviewed the five options offered by United and “we came back with a sixth option,” which included putting a cap on just how much the district will pay of the premiums, the remainder of which will have to be absorbed by the employees.

“We were originally looking at a 50 percent increase,” Keller said, “but we got it down to 12.06 percent.”

However, the bottom line is “they’re trying to help out the employees as much as they can, within the budget,” Boughton commented. “They are going to be fair; they are going to be fiscally responsible.”

Though sales tax collections are low and the economy is in a slump, Boughton pointed out last year’s $6.7 million budget surplus will help tide the district through this year, even with the health care insurance increase.