Wisconsin School districts’ health plans cost more than businesses’ plans
School districts in southeastern Wisconsin pay significantly more for health insurance than do private businesses – as much as 76% more – and their employees bear much less of the overall cost, an analysis released Wednesday shows.
The relatively small contribution teachers in general make to their insurance coverage drew considerable attention during the superheated debate over Gov. Scott Walker’s budget-repair bill and his bid to sharply limit collective bargaining by most government employees.
Less discussed has been the cost of the insurance plans, which significantly outweigh those offered by private-sector employers, according to an analysis by HCTrends, which describes itself as “a market-oriented forum” on health care issues.
For single coverage, southeastern Wisconsin school districts paid 76% more than private businesses in 2009-’10, according to HCTrends.School districts in southeastern Wisconsin are paying twice as much for health insurance as private sector companies in Milwaukee, according to a new study by HCTrends. That’s just the beginning of what the group found in its study of school district health insurance expenses in 2010.
“Health plan costs for the region’s teachers are 63 percent higher, on average, than the plans offered at private-sector companies with some union representation, and 80 percent higher than the average single-coverage cost for all private-sector plans,” according to the study.
“This combination of above-average plan costs and below-average employee contributions significantly increases the school district’s health care costs. While the average teachers’ plan costs 80 percent more than the average private-sector plan, the per-employee cost borne by the school district is twice as much as the cost borne by the average employer.”
