School Board May Change Carriers First, Benefits Later in Muskego Norway Health Insurance Plans

The Muskego Norway School Board reviewed options to trim over $1.3 million in district health insurance expense at its meeting Monday night, with further action to take place on October 25, 2011.

Three options for reducing costs were presented by consultant Willis, insurance brokers for the school district.  A carrier change appears imminent, as do changes in benefits outlined in the presentation, as the local school board adjusts to State budget constraints.

Much of the discussion centered on the timing of benefit changes to allow time for input, education, and engagement among district employees. The switch to a new carrier is proposed for January 1, 2012, to save money on premiums while delivering benefits similar to those employees currently receive.

The Human Side of Insurance Changes

Current and retired district employees packed the room at the meeting, with many speaking during public comment and interactive periods. The Board was attentive as they expressed their concerns about losing benefits long ago acquired in lieu of increased wages and other forms of compensation.

Teacher Deb Loomis stood in front of the school board and the viewing public to tell the human side of health insurance costs:  she suffered a brain aneurism that nearly destroyed her five years ago, she said. 

Loomis wanted board members to know how critical short- or long-term disability payments, co-pays, and other benefits became to her during the worst time in her life, Loomis said.  Her recovery depended on them, and helped her return to the classroom she so dearly loves, she said.

Anna Wendt, a teacher who has served as chief negotiator for teachers in the past, pointed out that employees have “pushed on” through “times of great change,” and appealed to the board to “please make a good choice for us to take care of our families and ourselves. “

Teacher Debbie Brownlow put it more succinctly:  “I’m devastated by the change from WEA (the district’s current carrier).  I’ve had a great deduction in my income and now…in my insurance,” she said.

Three Proposed Options for Employees

Five medical carriers and seven dental carriers were asked to quote on plans for the district, to achieve a minimum 7% reduction in the district’s present $9 million budget for dental and health insurance, according to source documents. 

After measurement against district “beacons,” or values, and with input from a cross-section of district employees, Willis brought 3 options to the table for the board to choose from, as shown in source documents. 

All three options include recommendations for a carrier change from WEA, the district’s provider for 28 years, to Humana, and a switch to Met Life dental, both effective January 1 of 2012.

The second stage of each option is to consider plan design changes that range from “small” to “aggressive,” according to source documents.  These would occur down the road, in July of 2012, consultants proposed at the meeting.

Speed vs. Deliberation

Several board members expressed concerns about delaying benefits changes until July of 2012, a move consultants said would allow the district time to educate employees and offer more benefit choices.

“I appreciate what you said about more choices,” said board President Jim Schaefer, “but I also think we don’t want to change it (the plan) now and in July.”

“It’s frustrating to the end user,” said board member Dean Strom, to change the plan in January 2012 and then again six months later.

Others countered the need for immediate change. 

“I’m pleased with the process…thoughtful, involving, helps us meet some needs now and prepare to meet others in the future,” said Superintendent Joe Schroeder. 

He later added, “We’re a learning organization.  I’d like to make sure our staff had a chance to learn and understand” any changes, he said.

“We’re talking about building positive momentum,” said consultant Tom Hitchcock.   Many benefits deserve further study, he said. These include waiver of premium and opt-out benefits, and waiting would also give the district time to consider “all of the services WEA has been providing” in a more thorough evaluation, the consultant said.

The School Board is scheduled to take action on the proposed options on October 25, 2011 at Muskego High School in the Performing Arts Center.