Insurance costs to rise for MCS employees

The cost of health insurance will jump 10 percent this year for city schools employees and retirees, the first increase in three years.

The district share will be $10 million of the $13.5 million increase, based on projections shared with the school board Monday night.

The average hike in premiums is 9 to 10 percent. This year, the district and companies around the nation are feeling the effect of changes in health care reform, including a provision that allows families to insure dependents though age 26.

The district has no way of knowing how many families will be affected by the change. Supt. Kriner Cash's challenge is to decrease costs by improving employee health.

"It's very important to figure out ways to get more employees to take health-risk assessment," he said. "What we are finding is that 7 to 9 percent of employees are driving 93 to 96 percent of cost."

He said the district could save money by charging an 80-20 split for employees who seek second opinions. The district covers the cost of second opinions, which Cash wants to continue.

"Looking at the profile of our employees, I think it is wise and helpful to encourage our employees to get a second opinion."

He also wants to push for broader use of generic drugs. "It may seem like small changes, but it really makes a big difference," Cash said. "Changes, like anything, do cause anxiety to staff. ... We've got to make sure we are extra super sensitive."

Cash drew criticism last year when he recommended the board change policy administrators from Blue Cross to Cigna. Retirees filled the auditorium to voice their opposition.

This time, he asked employees and retirees to sit on a committee reviewing changes.

Early in the year, premium costs were in line to increase roughly 9 percent. Reforms pushed the hike past 11 percent. Changes in medical coverage and drug plans reduced costs nearly 1 percent.