Sunday, August 25th, 2019

Will the Madison school district finally use Act 10 to save money?

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Is it possible the Madison school district will finally use the tools of Act 10 to save money by making teachers contribute to their health care premiums? As I report at Watchdog.org, the answer is “sort of.”

Under the proposal discussed at a preliminary budget meeting Monday night, a “differentiated premium contribution plan” would require teachers to pay 3 percent of their health insurance premium costs, while some support staff would pay 1.5 percent. Food service employees and security, presumably the lowest earners working for the district, would continue to pay nothing.

Nationally, employees who receive health care coverage through their employer pay an average 18 percent of the health insurance premium cost for single coverage and 29 percent for family coverage, according to a Kaiser Family Foundation survey. In Wisconsin, the average employee contribution for single coverage is 21 percent and 22 percent for family coverage.

The district is also trying to figure out how to implement even these small contributions without any employees having a net loss in pay, including those employees who are not currently eligible for raises in the next year.

Here’s what the contributions work out to. Compare the chart with what you’re paying.

Budget presentation slide from the Madison Metropolitan School District.

GIVE A LITTLE BIT: Teachers would have to pay between $40.54 and $53.58 per month for health insurance family coverage under a new proposal being considered by the Madison Metropolitan School District Board of Education.

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