Posted: 6/2/04

School opts for new health care plan

Showing concern to hold down the rising costs of health care premiums, ISD 831 employees and the school board have approved a major change in the districtís health care plan. The school board on May 3 voted to accept a recommendation for its employee benefits committee to adopt a Medica convertible health care plan. The district was projecting an 18 percent increase in the premium cost for the existing Medica Health Plan. The switch to the Medica convertible plan will mean a 7 percent increase in the premium cost for all school district employees. Based on the projected 7 percent hike, the district expects to pay total premium costs of $6,043,430 for the fiscal year starting July 1. That compares to the anticipated 18 percent premium hike and a total dollar commitment of $6,664,492. The new plan spells out new levels of employee deductible limits, co-pay limits and establishment of employee savings account that enables employees to carry over qualifying medical expenses to subsequent years.

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