District Administration - May 2009 - (Page 29)

to cover an estimated $670 million budget deficit for 2009-2010. The Rockwood (Mo.) School District has held its health care cost increases to about 3 to 4 percent annually, about half the national average, for five years, reports David Glaser, chief financial and legislative affairs officer. The self-insured district in part bids out its prescription drug coverage every three years and asks bidders for their lowest prices on the 10 medications most commonly prescribed in the district. With efficiencies like that in its health plan, Rockwood agreed with teachers for salary increases averaging 6 percent this year and 5 percent next year. “The increase is the full cost of teacher increases including their annual step increase,” Glaser says. “Most people recognize that the great teachers are underpaid.” A committee of administrators, teachers, support staff and retirees that oversees the district’s health insurance plan understands that “the more expensive the plan is, the less money is available for salary increases, and that influences how they approach it,” Glaser says. In Schaumburg (Ill.) School District No. 54, where premiums of $12.7 million for medical programs are 6.45 percent of the district’s budget, the cost of claims is less in inflation-adjusted dollars than it was six years ago because fewer claims are being submitted, says Mohsin Dada, assistant superintendent for business services for the Shaumburg district. Schaumburg’s health benefits plan ties the district’s contribution to the dollar amount of claims that employees submit. The district pays the full premium for employees “as our claims are contained,” Dada says. But if the total dollar amount of all claims submitted this year goes up more than 5 percent over last year’s total, employees will have to kick in 50 percent of the premiums next year. Schaumburg’s district also has an aggressive wellness and preventive care program that reimburses employees for heart, blood pressure, cholesterol and similar checkups. The district’s benefits committee is considering paying part of the cost of health club memberships and reimbursing employees www.DistrictAdministration.com who enter programs to help them stop smoking or lose weight. But that is a sticky issue, Dada says, because some committee members feel that “if people have not taken care of themselves, why should we pay for them to do it?” Meanwhile, the district also cuts costs through its early retirement program for teachers, replacing teachers who retire at the $90,000-$100,000 salary level with “relatively new” teachers who start at around $40,000, Dada says. Schaumburg offers an incentive of up to a year’s salary to encourage early retirement. On-Site Clinics Some districts, including Houston (Texas) Independent School District and Maryville (Tenn.) City Schools, cut costs by operating their own clinics on district properties. Offering primary care services through a worksite clinic costs less for employers than having employees visit off-site doctors and hospitals and also reduces time lost by May 2009 29 http://www.qomo.com http://www.qomo.com http://www.DistrictAdministration.com

Table of Contents for the Digital Edition of District Administration - May 2009

District Administration - May 2009
Contents
From the Editor
News Update
Facilities
Supervisor’s Opinion
Community Relations
Technology and Learning
Human Resources
Technology
Profile
How Well Does This Web Site Work?
Problem Solution
New Products
Product Focus
Tech Disruptions

District Administration - May 2009