Madison School District Healthcare Cost Savings

The Madison School District Board of Education approved a collective bargaining contract with the custodial units last night in which the custodians agreed to move from their current health care plans (GHC and the Alliance PPO) to a 3 HMO plan which is GHC, Dean Care and Physicans Plus. MMSD continues to pay 100% of the premium, but there are cost savings associated with this change. 85% of those costs savings was passed on to employees in salary and 15% went to MMSD.
This change is effective 1/1/2007. A big benefit of this change is that Administrators will also move to the 3 HMO option.
I’ve not seen an MMSD press on this important issue, but this is what I understand is happening.
Health care expense links.
This is a very positive development, particularly given the inaction on this topic in the recent past and one I believe helps support the 11/7/2006 referendum.
MMSD Press Release.