Health insurance bids could save taxpayers, schools and teachers millions of dollars
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ST. PAUL, Minn., April 7: After years of enormous increases in the cost of health insurance for school employees, relief may be near.
More than 200 local affiliates of Education Minnesota, the statewide educators’ union, received health insurance bids this week through the Minnesota Public Employees Insurance Program (PEIP). The bids indicate that districts which switch to PEIP can expect an average health insurance premium increase of 1 percent, a remarkable improvement for districts that have struggled for years with double digit increases in the cost of health insurance.
Most Minnesota school districts currently contract separately for health insurance. Over the last eight years, insurance companies have raised the premiums drastically on these small insurance pools, putting heavy financial pressure on schools that offer insurance to their employees, and on the educators who pay significantly more in family premiums and higher deductibles.
Education Minnesota has proposed for several years that Minnesota move all school employees into the same pool for health insurance. In 2010, the Minnesota Management and Budget Office estimated such a move would save schools $180 million in the first three years of operation, and at least $100 million annually in every year thereafter. School employees would save tens of millions of additional dollars. Governor Tim Pawlenty vetoed the measure three times during his eight years in office.
Current Minnesota law allows employee groups to seek health insurance bids without their employer’s approval. So in 2009, employees from 14 school districts went ahead on their own, and formed a multi-employer risk pool within PEIP. The resulting drop in their health insurance premiums encouraged others, and in January of 2011, school employees from 232 other groups sought bids through PEIP, resulting in today’s estimates.
Rather than embrace the lower costs of health insurance to schools and school employees, some GOP lawmakers are now introducing bills that would take away the ability of teacher groups to seek the lowest cost health insurance. The insurance lobby is pushing hard for these bills.
Education Minnesota is encouraging all taxpayers to contact their legislators and ask them to oppose Senate File 247 and House File 371.
About Education Minnesota
Education Minnesota represents 70,000 professionals working together for excellence in education for all students. Education Minnesota’s members include teachers and educational support professionals in Minnesota’s public school districts, faculty members at Minnesota’s community and technical colleges and University of Minnesota campuses in Duluth and Crookston, retired educators and student teachers. Education Minnesota is affiliated with the American Federation of Teachers, National Education Association and AFL-CIO.
April 08, 2011