District Sticks with Teachers Union Health Care Plan

Shorewood teachers will remain with their current health care coverage through the Wisconsin Education Association Trust after the School Board voted Tuesday to renew the plan.

Business Manager Mark Boehlke said the district received a bid from UnitedHealthCare, the only other company that offered a plan similar to the district’s current plan, but WEA’s bid was about $328,000 less that United.

“The quote from WEA was considerably cheaper; it made sense to stay with them,” Boehlke said.

WEA is a nonprofit insurance organization created by the Wisconsin Education Association Council, the state's largest teachers union.

With their current plan design, the WEA annual family premium is $1,617 less than the United Health premium. The district says the renewal cost for single person plan decreased from the current cost of $805.78 to $775.98 or 3.7 percent, and for a family plan from $1,827.74 to $1,756.78 or 3.9 percent.

The new rates will go in effect July 1.

Under the Early Retiree Reinsurance Program, a federal program that aims to make reduce health care costs for retirees, the district expects to receive a credit for more than $95,000.

"We're making this decision because it's the best economic decision," School Board President Paul Zovic said. "With all of the uncertainty going on, it is nice to give our staff something with consistency.”

Shorewood's decision to stick with WEA Trust comes as other school districts in southeastern Wisconsin have moved away from the union insurance plan to save costs.

The Hartland-Lakeside School District in Waukesha County says it can save nearly $700,000 by switching from the WEA Trust to UnitedHealthCare, the Journal Sentinel reports. The Menomonee Falls School District voted Monday to dump the WEA Trust and the Brown Deer School District has saved about $170,000 annually by changing insurers, the newspaper said.

Since the Shorewood doesn't use the state health care plan, educators will not be subject to the provision in the budget repair bill that public employees pay 12.6 percent of their premium. However, Boehlke said the district plans on making that change anyhow as the teachers union has told the board it is prepared to contribute 12.6 percent and the district has planned its budget around it.

Contract negotiations will likely resume July 1, as the current teachers contract expires June 30.

Boehlke added unrepresented employees like administrators will start paying 12.6 percent starting next school year. Custodial employees aren't affected as they have a three-year contract that expires in 2013.