Tyler ISD may raise health insurance rates [Tyler Morning Telegraph, Texas]

May 16--Tyler ISD employees could see a spike in their monthly insurance premiums.

But district officials said even with the increases, the cost will be less than that of the majority of other school districts, which use a state plan.

The district is proposing to raise its insurance premiums to keep up with rising health care costs and expected increases in plan use, according to information from the school district.

Board members will consider the issue during a 7 p.m. meeting today in the Plyler Instructional Complex, 807 W. Glenwood.

Jill Fondren, the district's coordinator of payroll and benefits, said TISD has had a small increase in the number of people signing up for the plan, but also more people are using it once they are signed up.

Ms. Fondren said the district hasn't raised its premiums since 2004 and intentionally didn't do so the past few years because employees didn't get raises.

Because TISD is self-insured, the revenue has to cover the costs of the plan, Ms. Fondren said.

The proposed increases range from $20 a month on the low end to $125 a month on the high end between the district's two plans.

The exact increase depends on which plan the employee chooses and how many people are being covered.

The premium changes for the two plans would generate about $840,000 in new revenue for the plan, according to district information.

Even with the increase, the monthly premiums would be significantly lower than the Teacher Retirement System-Active Care Plans, which are used by about 95 percent of other Texas school districts, according to district information.

In most cases, the district's rate is less than half the cost of the comparable TRS plan, according to district information.

District officials wrote that the school district's medical benefit plan would continue to be a positive recruitment tool even with the changes.

The district also is proposing to discontinue one of its plans that covers more than 900 employees, but not their dependents.

The Inpatient Hospital Benefit Plan pays $100 a day for each day a covered employee is hospitalized, according to the district information. It pays for inpatient hospital stays only. No other medical services, supplies or drugs are covered. It's intended to supplement other medical coverage.

Employees pay no premium, but the district pays $30 per month per employee on the plan.

This plan, as is, fails to meet minimum coverage standards under the Affordable Care Act.

The act requires that all people have health care coverage through a minimum essential coverage plan starting Jan. 1, 2014, according to the district.

Therefore, the district is proposing to discontinue the plan and offer the new High Deductible Medical Benefit Plan to employees.

This plan would meet the act's coverage requirements and be considered affordable under the act.

However, it also would cost employees $90 to $460 per month in premiums depending on the number of people covered.

The district would see a net increased cost of more than $304,000 because of this switch.

TISD will contribute $225 monthly per employee for coverage under one of the health care plans, according to the district.

TISD will provide its open enrollment period in September for the coming health plan year.

Those who do not choose coverage at that time won't be able to enroll for coverage in January, when the federal law requires all people to have health care coverage.

The school district will not be penalized for employees who choose not to select coverage, according to the district.

About 2,600 employees are eligible for the district's health plan and about 1,600 of them are currently on a health plan, Ms. Fondren wrote in an email.

In other business, the school board will vote on the resignations of Ramey Elementary School Principal Dr. Alfreddie Felder and Hogg Middle School Principal Dr. Jo Ann Simmons.

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