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School insurance rates might spur labor fight By DAMIAN MANN Mail Tribune Monthly insurance premiums for most Jackson County school districts exceed the state average, according to a survey released recently by the Oregon School Boards Association. Six of the nine Jackson County districts pay a higher monthly premium than the state average of $636.34, setting the stage for disputes with unions over insurance caps and stimulating searches for different carriers. Caps are the maximum amount districts pay toward premiums. Two county districts also have the distinction of paying the highest share of premiums, requiring little or no contributions from employees. Prospect School District pays the second highest in the state, covering $846.52 of monthly premiums for its employees. Only the Klamath school system pays more, footing the entire $901.73 bill for insurance. Eagle Point is not far behind, paying its employees' entire premium of $836.37. While the Ashland School District has a higher-than-average premium at $780.15, its teachers pay the third highest out-of-pocket expenses at $305.77. Unlike Prospect and Eagle Point, Ashland has placed a cap on coverage amounting to $474.38. Most other districts in the state also have caps. While most carriers have increased premiums, some school districts in the county were surprised this summer to learn they faced 70 percent rate hikes by OEA Choice Trust, affiliated with the Oregon Education Association. OEA said rates increased in other parts of the state as well. Insurance experts have cited an aging population in Jackson County and higher medical utilization as contributing to generally higher premiums here. To combat the problem, some districts, like Rogue River, have gone with a cheaper plan, and others are considering different carriers. Prospect Superintendent Don Alexander said a cap on insurance to reduce the district's share of costs is already being discussed as part of a new contract next June. "For the last several years, we've had 20 to 40 percent increases," he said. "This year we had a 28 percent increase and it's only going to go up." His district has OEA Choice, which Alexander describes as a "Cadillac plan." Although many teachers feel loyalty to this insurance because it is part of an education organization, Alexander said his district is being forced to look at other less expensive plans. "We can't afford as a district to go up and up and up," he said. As the state forecasts budget cuts from a worsening economy, educators are being warned to prepare to cut costs even further. "With our costs going up and our budgets being reduced, everybody's got to share in the burden," he said. Alexander acknowledges the discussion of caps will be a problem in negotiations. "It is going to be a big issue and will continue to be," he said. When Ashland teachers negotiated an insurance cap of $474.38 - the maximum contribution the district would make - they never imagined that rates would rise so high, said Leeanne Wallace, Ashland Education Association president. Most teachers, she said, opt for a slightly cheaper plan than the one cited in the survey, but it still requires about $200 a month in out-of-pocket expenses for teachers. "They're really discouraged," she said. To find a solution to this problem, the district has formed a committee to look at other insurance options. Wallace said teachers are continually struggling to retain a competitive salary in the face of increasing budget cuts and are hoping to avoid accepting an insurance plan with fewer benefits. The Eagle Point district foots the entire bill for its teachers' premiums, but it does offer an alternative plan that costs less. Finance director Greg Lecuyer said the typical plan costs $719, with the $836.37 cited in the survey being the highest plan available. The Rogue River School District would have paid $800 a month if it had stayed with OEA Choice, but the district opted to go with Regence BlueCross/BlueShield recently. This cut the premiums to $518.35, with the district paying a cap of $506. Medford schools also considered OEA Choice but chose Regence because of its lower rates, saving the district $1 million in annual costs. Reach reporter Damian Mann at 776-4476, or e-mail [email protected] Mail Tribune Home | Ottaway Newspapers, Inc. | Dow Jones & Co., Inc. | Privacy | Contact Us Copyright � 2001 Mail Tribune, Inc.