Nearly 200 employees of the Madison School District who currently have health insurance provided by Wisconsin Physicians Service will lose that option, saving the district at least $1.6 million next year.
But the real savings in eliminating what has long been the most expensive health insurance option for district employees will come in “cost avoidance” in the future, said Bob Nadler, director of human resources for the district.
“It’s a big deal for us – it really is,” Nadler said.
“It certainly will be a benefit to both our employees and the taxpayers,” said Superintendent Art Rainwater, adding that the savings were applied to salary increases for the employees affected.
The change, which will take effect Aug. 1, is the result of an arbitrator’s ruling that allows the district to eliminate WPS coverage as an option for members of the clerical unit of Madison Teachers Inc., and instead offer a choice of coverage by Group Health Cooperative, Dean Care or Physicians Plus at no cost to employees. Those employees previously had a choice between only WPS or GHC.
Currently, the district pays $1,878.44 a month for each employee who chooses WPS family coverage and $716.25 for single coverage.
For Dean Care, the next highest in cost, the district will pay $1,257.68 per employee a month for family coverage and $478.21 for single coverage.
This year, WPS raised its costs more than 11 percent while other providers raised their costs by 5 percent to 9 percent, Nadler said.
- The high cost of WPS insurance has been a frequent topic in recent Madison School Board races and referendums.
- Concessions Before Negotiations
- Arbitrator’s Award (Sherwood Malamud) 50 Page 255K PDF
- Jason Shephard: WPS Insurance proves costly.
- KJ Jakobson: Madison Schools Health Care Cost / Benefit Analysis
The tradeoff between WPS’s large annual cost increases, salaries and staff layoffs will certainly be a much discussed topic in the next round of local teacher union negotiations.