Change in Retiree Health Plan Proposed

I do not have enough information about the process and costs and consequences of this change to make any comment at this time. Anybody else?

Maria
Updated: 6/17/2008 11:47:01 PM
Retires riled over Eau Claire school district's health plan offer
By Christena T. O'Brien
Leader-Telegram staff
Some retired Eau Claire school district teachers are upset they may have to pay more for health insurance than their counterparts who are still working.

Dozens of retirees attended Monday's school board meeting to express their concerns over changes to their insurance coverage that mean they no longer would have identical plans as current teachers.

Retired Memorial High School English teacher Fred Poss is hopeful retirees and district officials can work through the issue.

Retirees aren't asking for anything extra, just what they're entitled to get from past deals, he said.

"A deal is a deal, and when it's not, look out," said Poss, one of six people to address the board Monday.

School officials will meet with retirees Monday in an effort to work through the disagreement over health insurance.

"Whenever we make a big change, there are challenges to that," board President Carol Craig said Tuesday, "so we want an open session, so every retiree understands what's being offered."

In past years, retirees have been offered the same health insurance plan as active employees, said Jim Kling, district executive director of personnel.

In the Eau Claire school district, 274 retirees have the district's health insurance plan, Kling said.

District officials proposed moving all employees, including retirees, to high-deductible health reimbursement accounts but later were directed by their lawyer not to offer the HRA plan because of the possibility of a legal challenge, he said. Because of that, retirees were offered the traditional health insurance plan in effect under the last contract, which comes with a 17 percent increase in the premium.

The out-of-pocket costs for employees vary, but Kling said such costs range from zero to $2,200 for a single plan under the traditional health insurance plan and zero to $1,500 for a single plan under the HRA plan.

"The issue is really one that we don't necessarily have to take on, but it's essential that we do at the same time, and that is because we bargained in good faith, and this is a very concerning factor that came in after the bargaining," said Jo Burke, president of the Eau Claire Association of Educators, the teachers union.

"We've always had an agreement that any insurance plan covers all employees - active and retired," she said, "(so), the issue is whether existing retirees should be provided a different health plan than current employees."

O'Brien can be reached at 830-5838, 800-236-7077 or christena.obrien@ecpc.com.