Glens Falls schools hope employees, retirees will switch health insurance plans [The Post-Star, Glens Falls, N.Y.]

March 23--GLENS FALLS -- The Glens Falls school district wants employees and retirees to switch to a cheaper health insurance plan that will save the district thousands of dollars.

Half the area school districts have succeeded in discarding the Matrix Indemnity Plan in favor of the cheaper Preferred Provider Option (PPO).

Other districts, eager to save money, are trying to do that now. But employees and retirees must agree to the switch. Unions must also agree to drop a health insurance plan from labor contracts.

"The problem is, school districts have to negotiate it out," said Paul Jenkins, superintendent of schools. "We can't just throw it out and say, 'We don't want it anymore.' "

As a result, districts like Glens Falls plan to inform its members using the Matrix about the benefits of the PPO.

School leaders in other districts have said the quality of benefits of the PPO is on par with the Matrix.

But the cost for the Matrix is such that some local districts have negotiated with unions to no longer offer the plan to new employees.

In some districts, unions have agreed to require anyone on the Matrix to pay the difference between that plan and the PPO.

This year, a Matrix family plan costs $24,000 and officials expect it to rise another 16 percent in 2013-14. The PPO is roughly $20,000 and will increase 7.5 percent for next year, officials said.

In Glens Falls, teachers pay 16.5 percent of the cost for their health benefits.

Jenkins said the Matrix is not only expensive, but no upgrades have been made to the plan, unlike the PPO.

"Although you see new changes to the PPO or lower-cost plans, the provider (for the Matrix) is not making any changes, but the expense is going up," Jenkins said.

Glens Falls has 107 retirees and 38 employees on the Matrix, said Stephen Meier, the district's director of business.

The district has already discussed the benefits of the PPO with employees on the Matrix. Now, the district plans to do the same with retirees, officials said.

Glens Falls is among 30 local school districts that have formed a consortium to buy health insurance.

Over the years, all the districts shared the cost of the Matrix. At this point, only half the districts still offer the Matrix, and only they pay the cost, Jenkins said.

The cost of the Matrix plan is also on pace to exceed a limit that will trigger a tax in 2018 under the Affordable Care Act. The limit is roughly $27,000 for a health insurance plan. Any amount more than that will be taxed 40 percent, which employers will have to pay.

Area superintendents are trying to find a way to avoid paying the fee, which has been dubbed a "Cadillac" tax.

At Lake George, the district also wants employees and retirees to leave the Matrix plan.

In December, the district had 167 Matrix plans, which include people using the individual, two-person or family plan. At that time, 14 employees were using the plan.

Superintendent Patrick Dee said the district will have informational sessions for employees and retirees to learn about the PPO.

Dee said the district could save around $130,000 if members left the Matrix plan.

"There is a pretty significant financial benefit for our school district and our retirees to make a move," he said. "However, it needs to make sense to the individual retiree."

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