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Teacher Health Insurance

 

Teacher health insurance is a major issue in teacher contracts today. In the past, public schools did not require their teachers to pay their premiums at all, but the percentage of teachers who now pay at least part of the premium is rising. In the Lakeville Regional School District, the union has signed a contract agreeing that the teachers will get no pay increases within the first year, and they will pay an extra 15% of their premiums. The Olmsted Falls Education Association in Ohio signed a contract that increases its teachers’ insurance premiums and prescription co-pays.

In some cases, teachers must accept a lower pay in order to have an affordable insurance plan through their employers. Generally, public school teachers pay less of their premium than most employees in the private sector, but their payments for insurance are increasing rapidly. Insurance was a guaranteed benefit across the United States for public school teachers, but the rising cost of group insurance premiums has forced many teachers to seek individual plans.

 

Teacher Health Insurance: Individual Plans

Many teachers are now pursuing individual plans for themselves and their families. These plans appear to be more expensive initially, but they offer many benefits to teachers as policy holders. Unlike the types of health insurance plans offered by their employer, individual plans can be customized to a teacher’s personal needs. Rather than accepting a generic group plan, each individual teacher can choose what medical needs should be covered and what is not necessary. The plan can remain the same even if a teacher moves from one job to another. The flexibility offered with individual plans has lured many teachers away from the traditional group plans.

HMOs, called managed care plans, offer individual coverage at a lower price, but the policy holder is limited to a list of eligible doctors and hospitals. Teachers who are not particular about which doctor they visit could consider an HMO. Indemnity plans, on the other hand, are most expensive but more flexible. The policy holder can visit any doctor or hospital. Some who cannot afford insurance at all opt for medical discount plans. These plans offer a list of doctors and other professionals who offer their services for a lower price. Even a teacher who has an insurance plan could consider a medical discount plan as a supplement to save money.

 

Teacher Health Insurance: Who Pays for It

Money for group insurance plans in the public school system comes from American taxes and the Uniform Rate of Tax. The Uniform Rate of Tax is what each public school is required to pay for property taxes to the government. The money from that tax is pooled together and handed back out to the schools in equal distributions, along with other tax dollars and government allotments.

It is estimated that $15 million from the Uniform Rate of Tax will go to teachers’ insurance plans this year. Some argue that the government should devote more money to teacher health insurance because it affects the quality of the school system. In Texas, many have suggested that the school system take $700 million out of the Permanent School Fund in order to buy teacher health insurance. The debate about who should fund teacher insurance continues to thrive in Texas and across the country.

 

Teacher Health Insurance: Union Involvement

Sometimes teacher health insurance plans that are associated with the union are more expensive. For example, Michigan has a union group called MESSA which provides insurance for its teachers. MESSA’s insurance costs have risen 13%, while other schools in the area are reporting a slight decrease in insurance costs with comparable benefits. The union also leads negotiations with school boards to guarantee that its teachers maintain the best coverage possible. Despite the union’s efforts, teachers in the public school system have been forced to explore their options and find more affordable individual plans.

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