Muskego School Board Wrestles With Insurance Decision

Crowd Vocal on Million-Dollar-Plus Decision

Right after the annual meeting the School Board held a regular session and found a $1.1 million-dollar-decision on health insurance carriers much harder to make than the earlier tax levy vote, which passed swiftly.

The cut to insurance expense is driven by state budget actions, and may result in a carrier change by January 1, 2012 to carve savings from district premium costs, according to district administration.

Teacher Anna Wendt, quoted in on the subject, asked the district for balance by comparing itself to lower-charging school districts like Kettle Moraine, Mukwonago and Hamilton, instead of schools like New Berlin that are raising both premium shares and deductibles for employees.

Other teachers and retirees worried that employees will get the message they are not valued and the district may lose good teachers as benefit costs to employees rise, they said.  

Retiree Jim Baumgarten questioned whether consultants advising the district have a conflict of interest when they study and recommend carriers, since the consultants are paid by the very insurance companies they are offering guidance on. 

School Board Clerk Eric Schroeder later said he is confused by the district’s relationship with the insurance brokers, Willis of Wisconsin, himself.  “I’m totally lost,” he said, “we hired a consultant from May to December…now they’re a broker indefinitely.”

Board Pushes for More Answers

Board members found diverse opinions among themselves on health insurance issues after Business Services Director Scot Ecker recommended they adopt a carrier change from WEA to Humana. 

That change, Ecker said, would meet goals to reduce costs and maintain up to 96% of the same providers as the previous carrier, WEA, did for employees…and add additional providers to the available network.  Clerk Eric Schroeder agreed, saying that the current plan is beneficial to employees but not to taxpayers.

“This is what we’re charged to do,” he said of the recommendation to switch. “Be equally responsible to taxpayers and teachers.” 

Many board members said they had received numerous letters or emails on health insurance changes and weighed them carefully. 

Board member Rick Petfalski said he was not comfortable with the options on the table and asked to see additional information on choices previously presented to the board. 

Board member Mike Serdynski also was uncomfortable with some options, but for different reasons.  He felt the district might be leaving substantial money on the table.  Even with changes the MNDS will be highly competitive if not better than other districts, Serdynski said.

Others, like Vice President Lisa Warwick, felt the board could make a decision immediately.  She said district employees understand this is a time of great change and the MNSD will weigh options carefully to make the best decision. 

Discussion was tabled with a request from board members for more detail on at least two of the options under consideration.