District Administration - May 2009 - (Page 26)

HUMAN RESOURCES CONTROLLING Health Care COSTS Increasingly higher premiums in K12 districts are being offset in innovative ways. BY ALAN DESSOFF W ITH PUBLIC DISTRICTS under more pressure than usual in today’s recessed economy to boost revenue and reduce expenses, health beneﬁts have become a prime target in union contracts. As in most companies in America, health plan designs in public districts are being changed to reﬂect higher out-of-pocket costs, such as higher deductibles on visits to providers, hospital stays, and prescription drugs. District managers are asking teachers and other employees to bear more of the monthly premium costs. Others are opening their own clinics to treat employees. In at least one state—Ohio—several dozen districts have banded together in a health care consortium that cuts administrative costs for all of them. Such savings on health beneﬁts allow districts to boost teacher salaries, a key issue in union negotiations. Some districts have also cut costs by encouraging veteran teachers with higher salaries to take early retire- ment, to be replaced by younger teachers at lower salary levels. Employers usually experience more pressure on beneﬁts costs in an economic downturn, says Scott Hildebrandt, senior associate with Mercer, a global beneﬁts consulting ﬁrm. Employees who have neglected their health and now fear losing their jobs may take advantage of health beneﬁts available to them before losing the beneﬁts with the job, Hildeb- randt says. In two-income households, a spouse who loses a job will usually join the other spouse’s beneﬁt plan as a dependent, increasing health costs for that employer. In 2008, total national health expenditures were expected to rise nearly 7 percent—two times the rate of inﬂation, according to the National Coalition on Health Care. Health care spending is expected to rise at similar levels for the next decade, reaching $4.3 trillion in 2017. District Administration 26 May 2009

Table of Contents for the Digital Edition of District Administration - May 2009

District Administration - May 2009
Contents
From the Editor
News Update
Facilities
Supervisor’s Opinion
Community Relations
Technology and Learning
Human Resources
Technology
Profile
How Well Does This Web Site Work?
Problem Solution
New Products
Product Focus
Tech Disruptions

District Administration - May 2009

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