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Budget: WPS Presentation to MMSD/MTI Health Insurance Task Force
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WPS’s (Wisconsin Physician Service) recent presentation to the MMSD/MTI Health Insurance Task Force. [Text: HTML] [pdf slides] |
25.62% of Madison’s $402,464,374 2014/2015 budget to be spent on benefits; District’s Day of Teacher Union Collective Bargaining; WPS déjà vu
Act 10 duckduckgo google wikipedia
Madison Teachers, Inc. Solidarity Newsletter (PDF), via a kind Jeannie Kamholtz email::
School Board Decisions on Employee Health Insurance Contributions Could Further Reduce Wages
Under MTI’s various Collective Bargaining Agreements, the District currently pays 100% of the health insurance premiums for both single and family coverage, but retains the ability to require employees to contribute up to 10% of the monthly premium for both single and family coverage.
District management has recommended to the Board of Education that they adopt a Budget which would allow for up to a 5% increase in health insurance premiums to be paid by the District. If the Board agrees, this would require employees to pay any increase above 5%, and insurance carriers of District plans currently propose premium increases greater than 5%. The Board is currently discussing whether to require the employee to pay the increase. If the Board does, that would further decrease employees’ take-home pay. Even a 2% employee premium contribution would cost employees over $120 per year for the least expensive single coverage, and over $300 per year for the least expensive family coverage, i.e. any increase would compound the loss of purchasing power described above.
2014-2015 budget documents, to date.
Several articles on the legal controversy regarding Wisconsin “collective bargaining”:
WILL to Madison School Board: Comply With Act 10 or Face Lawsuit.
Mary Burke (running for Governor) votes for labor talks with Madison teachers.
Madison School Board nearing extension of union contracts.
Madison School Board flouts the law in favor of teachers union.
Liberals look to one last chance to overturn Scott Walker’s reforms, in a judicial election.
The Madison School District’s substantial benefit spending is not a new topic.
What Does Your MTI Contract Do for You? Health Insurance
Madison Teachers, Inc. Solidarity Newsletter (63K PDF), via a kind Jeanie Bettner email:
Since the late 1960’s, MTI members have had the benefit of the best health insurance available. Stressing the importance of quality health insurance in providing economic security, members have made health insurance their #1 priority via their responses to the Union’s Bargaining Survey. And, the Union not only was able to bargain specific benefits, such as acupuncture and extended mental health coverage, as demanded by MTI members, but due to a 1983 MTI victory in the Wisconsin Supreme Court, MTI was able to have an equal voice in which insurance company would provide the plan. This is important because different insurance companies have different interpretations of the same insurance provisions.
Unfortunately, the District Administration took advantage of the increased leverage in negotiations enabled by Governor Walker’s Act 10 forcing concessions in health insurance and other Contract provisions in exchange for them agreeing to extend MTI’s five Collective Bargaining Agreements through June 2013.
Members of MTI’s teacher bargaining unit, who elected WPS health insurance under old Contract terms, will now lose that coverage June 30, 2012. The District is in the process of distributing materials by which members of the teacher bargaining unit can become familiar with the options available for coverage commencing July 1. They are Dean Health Plan, Physicians Plus and Group Health Cooperative. Each offers an HMO and a Point of Service Plan. The latter carries a higher premium, but enables broader choices for services.
The District has scheduled five sessions for those with questions to seek answers from the above-referenced plans.
April 9 – Doyle Auditorium -1:00-3:00 p.m.
April 11- La Follette C17 – 4:00-6:00 p.m.
April 17 – Memorial Wisconsin Center – 4:00-6:00 p.m.
April 19 -West LMC – 4:00-6:00 p.m.
April 23 – East LMC – 4:00-6:00 p.m.
The Madison School District’s support of the costly WPS health insurance option has been quite controversial over the years.
Madison School District & Madison Teachers Union Reach Tentative Agreement: 3.93% Increase Year 1, 3.99% Year 2; Base Rate $33,242 Year 1, $33,575 Year 2: Requires 50% MTI 4K Members and will “Review the content and frequency of report cards”
via a kind reader’s email (200K PDF):
The Madison Metropolitan School District and Madison Teachers Inc. reached a tentative agreement Tuesday evening on the terms and conditions of a new two-year Collective Bargaining Agreement for MTI’s 2,600 member teacher bargaining unit. Negotiations began April 15.
The Contract, for July 1, 2009 to June 30, 2011, needs ratification from both the Board of Education and MTI. The Union will hold its ratification meeting on Wednesday, October 14, beginning at 7:00 p.m. at the Alliant Energy Center, Dane County Forum. The Board of Education will tentatively take up the proposal in a special meeting on October 19 at 5:00 p.m.
Terms of the Contract include:
2009-2010 2010-11
Base Salary Raise – 1.00% Base Salary Raise – 1.00%
Total Increase Including Benefits – 3.93% Total Increase Including Benefits – 3.99%
Bachelor’s Degree Base Rate $33,242 Bachelor’s Degree Base Rate $33,575
A key part of this bargain involved working with the providers of long term disability insurance and health insurance. Meetings between MTI Executive Director John Matthews and District Superintendent Dan Nerad and representatives of WPS and GHC, the insurance carriers agreed to a rate increase for the second year of the Contract not to exceed that of the first year. In return, the District and MTI agreed to add to the plans a voluntary health risk assessment for teachers. The long term disability insurance provider reduced its rates by nearly 25%. The insurance cost reductions over the two years of the contract term amount to roughly $1.88 million, were then applied to increase wages, thus reducing new funds to accomplish this.
The new salary schedule increase at 1% per cell, inclusive of Social Security and WRS, amount to roughly $3.04 million. Roughly 62% of the salary increase, including Social Security and WRS, was made possible by the referenced insurance savings.
Key contract provisions include:
Inclusion in the Contract of criteria to enable salary schedule progression by one working toward the newly created State teacher licensure, PI 34. Under the new Contract provision, one can earn professional advancement credits for work required by PI 34. - Additive pay regarding National Board for Professional Teaching Standards, i.e. an alternative for bargaining unit professionals who are not teachers (nurses, social workers, psychologists, et al) by achieving the newly created Master Educator’s License.
- Continuance of the Teacher Emeritus Retirement Program (TERP).
- The ability after retirement for one to use their Retirement Insurance Account for insurance plans other than those specified in the Collective Bargaining Agreement. This will enable one to purchase coverage specific to a geographic area, if they so choose, or they may continue coverage with GHC or WPS – the current health insurance providers.
For elementary teachers, the frequency and duration of meetings has been clarified, as have several issues involving planning time. All elementary teachers and all elementary principals will receive a joint letter from Matthews and Nerad explaining these Contract provisions.- For high school teachers who volunteer for building supervision, there is now an option to enable one to receive compensation, rather than compensatory time for the service. And there is a definition of what “class period” is for determining compensation or compensatory time.
- For elementary and middle school teachers, MTI and the District will appoint a joint committee for each to study and recommend the content and frequency of report cards.
For elementary specials (e.g. art, music) teachers, the parties agreed to end the class and a half, which will mean that class sizes for specials will be similar to the class size for elementary classroom teachers.- For coaches, and all others compensated on the extra duty compensation schedule, the additive percentage paid, which was frozen due to the State imposed revenue controls, will be restored.
- School year calendars were agreed to through 2012-2013.
- Also, MTI and the District agreed to a definite five-year exemption to the Contract work assignment clause to enable the District to assist with funding of a community-based 4-year-old kindergarten programs, provided the number of said 4-K teachers is no greater than the number of District employed 4-K teachers, and provided such does not cause bargaining unit members to be affected by adverse actions such as lay off, surplus and reduction of hours/contract percentage, due to the District’s establishment of, and continuance of, community based [Model III] 4-K programs. (See note below.)
Audio / Video: Madison School Board Vote on the MTI 2007 – 2009 Agreement
The Madison School Board voted 4-3 (for: Carstensen, Moss, Silveira and Winston; no: Cole, Kobza and Mathiak) Monday evening to approve the proposed MMSD / MTI 2007 – 2009 agreement. The new arrangement, which does not include substantial health care changes, was set in motion by the “Voluntary Impasse Resolution Document” – also approved by a 4-3 vote (Carol Carstensen’s alt view). This document, approved before negotiations began, took health care changes off the table if the discussions resulted in arbitration.
- 30 Minute Video Clip
- 34MB MP3 audio recording of the entire board meeting (MTI Agreement vote discussion begins at about 6 minutes
- MTI’s useful synopsis of the Agreement: 150K PDF, including the extension of the TERP (Teacher Retirement Extension Program) through 2011
- Going to the Mat for WPS by Jason Shephard
- Lawrie Kobza notes that changes in health care would have increased salaries by 2.8%, rather than the current 1%.
- KJ Jakobson’s health care cost/benefit analysis
- A teacher noted the recent MTI vote.
- Susan Troller: Board approves teachers contract deal on 4-3 vote.
- TJ Mertz:
Three Board of Education members voted against the MTI contract on Monday, June 18, 2007. My initial reaction was that it was a ‘free” vote, a vote without consequences. When elected officials know that there are sufficient votes to pass or defeat a measure they can use their votes to make a statement without taking responsibility for what would happen were they to prevail. This is what happened on Monday, those who voted against the contract knew that it would pass and that they would not be held responsible for the serious consequences that would ensue had they been in the majority. Upon reflection, I realized that in fact the vote has the consequences of exacerbating divisions among our teachers that are hard to justify based on their stated rationales for opposing the contract.
Statement on MMSD/MTI Tentative Collective Bargaining Agreement Vote
After much consideration, I have decided to vote against the tentative agreement negotiated by the District and the MTI teachers union. I will do so because the agreement fails to include significant health insurance changes, and as a result, unreasonably depresses the salary increases that can be provided to our teachers.
While the total salary and benefit increase to our teachers under the proposed agreement is 4.02%, our teachers will only receive a 1% increase in their salaries in each of the next two years. This is so even though we ask our teachers to do more and more each year given budget cuts and changes in our student demographics. The rest of the increase is eaten up by benefits, the vast majority of which is for health insurance.
I would like to see our teachers’ salaries increase by more than 1% per year. I believe a greater increase is well-deserved, and is needed to continue to keep and retain excellent teachers. I also believe a greater increase is needed so that the District’s starting salary for new teachers is competitive.
While money is obviously very tight, we could provide teachers with higher salaries if the District and the MTI teachers union – working together – would negotiate health insurance changes. The District’s initial proposal regarding health care insurance was to offer teachers the choice of three different HMO options or WPS. If a teacher chose one of the HMO options – Group Health Cooperative, Physicians Plus, or Dean Care– the District would pay the full cost of that HMO. If however a teacher chose coverage under WPS, which would still be available, the District would only pay the cost of the most expensive HMO, and the teacher would pay the rest of the cost of WPS. This proposal would have provided for a 2.81% salary increase for teachers for 2007-2008 – as opposed to a 1% increase.
The District and other employees groups have successfully worked together to revise health insurance coverages during this past year with the result that more money was available for employee wages to these groups. I was hopeful that similar results could be achieved for our teachers.
When I have raised this concern about how teacher salaries have been unreasonably depressed by the increasing cost of WPS, I have been told by some that it is none of the District’s business how MTI decides to split the negotiated salary and benefit package. I just cannot agree with this view.
While it is true that the total dollar impact to the District is the same regardless of how MTI splits the money between salary and benefits, I believe it is very important to the District how the money is spent. It is essential to the District that we have good, competitive teacher salaries and that our health insurance costs not drain money away from those salaries. It is essential that our teachers are paid fairly and equitably. It is not fair that a teacher who takes WPS insurance should receive $7,500 more in salary and benefits than a teacher who takes Group Health Cooperative. It is not fair that a majority of our teachers take Group Health Cooperative, yet they continue to have their compensation reduced to fund the benefits of others.
I am extremely disappointed that the District and MTI, working together, could not reach an agreement that puts more money into teachers salaries and less into health insurance costs. I truly believe that if the interests of the whole had been put first, this could have been done. Because we failed to take advantage of this opportunity, I feel I have no choice but to vote against the tentative agreement.
Madison Schools MTI Teacher Contract Roundup
Conversation regarding the recent MMSD / MTI collective bargaining agreement continues:
- Andy Hall wrote a useful summary, along with some budget numbers (this agreementi s56% of the MMSD’s $339.6M budget):
District negotiators headed by Superintendent Art Rainwater had sought to free up money for starting teachers’ salaries by persuading the union to drop Wisconsin Physicians Service, a health-care provider that offers open access to medical treatment with no need for referrals.
The district wanted MTI members to choose from among three health-maintenance organizations that limit coverage to specific providers in return for lower costs.
But the union kept the current mix — WPS plus one HMO, Group Health Cooperative — after members in a survey indicated support for maintaining those options.
Matthews is a paid member of the Wisconsin Physicians Service board of directors — an arrangement he defends as a means of advocating for members and the district. Critics contend it represents a conflict of interest.
“Our plan is cheaper than almost any in town,” said Matthews, referring to a union comparison of Wisconsin Physicians Service coverage, used by half of the members, to coverage offered to employees of state and local governments.
“The teachers were willing to pay more, they were willing to move money from wages to health insurance, in order to preserve those kinds of rights.”
Among the new costs facing teachers: A $75 co-pay for emergency room visits and a $10 co-pay for office visits.
Premiums for WPS, which is favored by many members with a serious illness in the family, will cost 10.4 percent more beginning July 1. But the premiums will decrease slightly beginning Jan. 1 as the co-pays take effect. For example, the WPS family premium will cost the district $1,711 per month while the employee’s share will be $190, falling to $187 on Jan. 1.
The GHC premium will increase by 5.7 percent — to $974 monthly for family coverage, paid entirely by the district — beginning July 1. That amount will decrease to $955 on Jan. 1. - Don Severson & Brian Schimming discuss the agreement and the school board: 5MB mp3 audio file.
- 2005 / 2007 Agreement 528K PDF.
- The Madison School Board will vote on the Agreement Monday evening, June 18, 2007.
- Additional links and notes.
- Don Severson: 3 Simple Things.
- MMSD / MTI contract negotations beginCarol Carstensen: An alt view on Concessions Before Negotiations.
- Going to the Mat for WPS
- What’s the MTI Political Endorsement About?
- Some MMSD unions have addressed health care costs.
MMSD and MTI reach tentative contract agreement
Madison Metropolitan School District:
The Madison Metropolitan School District and Madison Teachers Incorporated reached a tentative agreement yesterday on the terms and conditions of a new two-year collective bargaining agreement for MTI’s 2,400 member teacher bargaining unit.
The contract, for the period from July 1, 2007 to June 30, 2009, needs ratification from both the Board of Education and MTI. MTI will hold a ratification meeting on Thursday, June 14 at 7:00 p.m. at the Alliant Energy Center, Dane County Forum. The Board of Education will take up the proposal in a special meeting on Monday, June 18 at 5:00 p.m. The MTI meeting is closed to the public, while the Board’s meeting is open.
Terms of the contract include:
2007-08
Base Salary Raise: 1.00%
Total Raise incl. Benefits: 4.00%
2008-09
Base Salary Raise: 1.00%
Total Raise incl. Benefits: 4.00%
Related Links:
- Concessions before negotiations.
- TJ Mertz comments on the agreement.
- Channel3000
- WKOWTV:
Taxpayers will continue to pay 100% of the health care premiums for half of the teachers who choose Group Health, and 90% of the premiums for the other half of teachers who join WPS. WPS teachers pay $190 a month for a family and $72 a month for an individual.
The union says those costs are too high.
The district said it tried to introduce two new HMO plans to lower costs, but the union rejected them.
MMSD / MTI Contract Negotiations Begin: Health Care Changes Proposed
The district and Madison Teachers Inc. exchanged initial proposals Wednesday to begin negotiations on a new two-year contract that will run through June 30, 2009. The current one expires June 30.
“Frankly, I was shocked and appalled by the school district’s initial proposal because it was replete with take-backs in teachers’ rights as well as the economic offer,” John Matthews, executive director of MTI, said in an interview Thursday.
But Bob Butler, a staff attorney with the Wisconsin Association of School Boards who is part of the district’s bargaining team, said he believed the district’s proposal was fair and flexible.
He said the administration’s proposal on health care provides two new HMO plans that could bring savings to the district and new options to employees, while still providing an option for the more expensive Wisconsin Physicians Service plan for employees who want it.
The district is proposing that teachers accept language that would allow two new HMO insurance plans, provided by Dean Care and Physicians Plus, to be added to the two plans currently offered.
Slightly more than 53 percent of the employees represented by the teachers’ bargaining unit use the less expensive Group Health Cooperative plan, which is a health maintenance organization, or HMO. The district’s costs for the GHC plan for next year are $364.82 per month for singles and $974.08 for families. Employees who opt for the GHC do not pay a percentage of the premium themselves but are responsible for co-pays for drugs that range from $6 to $30.
If about the same number of district employees — 1,224 — use the GHC plan next year, it would cost the district about $11.6 million.
The other option currently available to teachers is provided by Wisconsin Physicians Service. A preferred provider organization plan, it provides health insurance to just under 47 percent of the district’s teacher unit.
A more flexible plan that allows participants to go to different doctors for different medical specialties, the WPS plan next year will cost the district $747.78 per month for singles and $1,961.13 for families. Under the current contract, employees pay 10 percent of the cost of the WPS plan, which this year is $65.65 per month for singles, and $172.18 per month for families.
The cost estimate for the school district’s share of the WPS plan under the current contract would be about $19 million. Employees, who pick up 10 percent of the cost as their share of the premium, would pay another $2 million under the current structure.
It’s important to remember that a majority of the Madison School Board voted several months ago to not arbitrate with MTI over health care costs. Andy Hall has more:
But with the Madison School Board facing a $10.5 million budget shortfall, is the board giving away too much with its promises to retain teachers’ increasingly pricey health insurance and to discard its legal mechanism for limiting teachers’ total compensation increase to 3.8 percent?
Yes, School Board Vice President Lawrie Kobza said Saturday, “I feel very strongly that this was a mistake,” said Kobza, who acknowledged that most board members endorse the agreement with Madison Teachers Inc., the teachers union.
State law allows districts to avoid arbitration by making a so-called qualified economic offer, or QEO, by boosting salaries and benefits a combined 3.8 percenter a year.
“To agree before a negotiation starts that we’re not going to impose the QEO and negotiate health care weakens the district’s position,” Kobza said. She contended the district’s rising health-care costs are harming its ability to raise starting teachers’ salaries enough to remain competitive.
The “voluntary impasse resolution” agreements, which are public records, are used in only a handful of Wisconsin’s 425 school districts, according to the Wisconsin Employment Relations Commission.
Carol Carstensen posted an alt view on Concessions before negotiations. Related: What a sham(e), Sun Prairie Cuts Health Care Costs & Raises Teacher Salaries – using the same Dean Healthcare Plan and “Going to the Mat for WPS“. TJ Mertz says Susan neglected to mention the QEO (note that the a majority of the MMSD school board agreed not to arbitrate over the QEO or health care casts in “Concessions before negotiations”.
MMSD, MTI and Health Insurance – A Clarification
There seems to be some confusion about the negotiations between MTI and the school district. The Board WILL be negotiating health insurance with MTI; the Board has NOT taken health insurance off the table. The Voluntary Impasse Agreement (VIA) does NOT eliminate this as a subject of negotiation. The VIA DOES set up a structure for negotiations: a schedule, agreement by MTI that teachers will not engage in job actions, dates for the start of mediation if a settlement hasn’t been reached, name of the mediator, a date for binding arbitration if mediation is not successful and name of the arbitrator. IF no voluntary settlement is reached and we go to binding arbitration, MTI agrees that it will not propose a change to the salary schedule and the Board agrees not to change health insurance. Those agreements are meant to make binding arbitration less attractive to both sides – and to put the emphasis on reaching a voluntary agreement.
Because the Board has not yet provided MTI with our proposals I cannot discuss them in public. I can however talk about the settlement we have reached with our custodians who are represented by AFSCME. The custodians agreed to change their health insurance to a choice of 3 HMO’s (Group Health, Physicians Plus and DeanCare). The savings from this change allowed a greater salary increase (2.5%). A small amount of the savings ($15,000) went back to the budget. These savings are realized only in the first year – thereafter, the base for figuring future costs uses the lower health insurance costs.
One of the most dramatic changes of the last 5 years (and one that has been little noted) is the movement of teachers from WPS to Group Health. This year more than 50% of the teacher’s unit take Group Health Insurance – the lowest priced HMO in the community.
A more complete discussion of this issue can be found at: http://www.madisonamps.org/component/option,com_jd-wp/Itemid,31/p,51/
Carol Carstensen
Going to the Mat for WPS
Suzanne Fatupaito, a nurse’s assistant in Madison schools, is fed up with Wisconsin Physicians Service, the preferred health insurance provider of Madison Teachers Inc.
“MTI uses scare tactics” to maintain teacher support for WPS, Fatupaito recently wrote to the school board. “If members knew that another insurance [plan] would offer similar services to WPS and was less expensive — it would be a no-brainer.”
WPS, with a monthly price tag of $1,720 for family coverage, is one of two health coverage options available to the district’s teachers. The other is Group Health Cooperative, costing $920 monthly for a family plan.
During the past year, the Madison school board has reached agreements with other employee groups to switch from WPS to HMO plans, with most of the savings going to boost pay.
In December, the board held a secret vote in closed session to give up its right to seek health insurance changes should negotiations on the 2007-09 teachers contract go into binding arbitration. (The board can seek voluntary insurance changes during negotations.)
“What we’ve done is taken away a huge bargaining chip,” says board member Lucy Mathiak. “Every other major industry and public sector has had to deal with health-insurance changes, and we’ve got a very real $10 million deficit.”
MTI Executive Director John Matthews says other employee unions “made a big mistake” in switching to HMO plans. Matthews has long maintained that WPS provides superior coverage, despite its higher costs and disproportionate number of complaints. And he defends the paycheck he collects from WPS as a member of its board, saying he’s better able to lobby for his teachers.
Much more on this issue, including links, audio and a transcript, here.
What’s the MTI political endorsement about?
In 2006-07 the Madison School district will spend $43.5M on health insurance for its employees, the majority of the money paying for insurance for teachers represented by Madison Teachers, Inc. (MTI) That is 17% of the operating budget under the revenue limits.
In June of 2007, the two-year contract between the district and MTI ends. The parties are now beginning negotiations for the 2007-09 contract.
The Sun Prairie School district and its teachers union recently saved substantial dollars on health insurance. They used the savings to improve teacher wages. The parties joined together openly and publicly to produce a statement of the employees health needs. Then they negotiated a health insurance package with a local HMO that met their needs.
The Madison School district has no choice but to look for ways to reduce future health insurance costs, while keeping a high quality of care. What we pay our teachers in the future depends on it–both in wages and in post-retirement benefits. What we can offer to our children in programs depends on it.
We have made some progress in reducing future health insurance costs for some of the union-represented employees and for our administrators. I hope that board members elected in April will continue down this path. It’s not an easy path.
MTI plays hard ball in its election endorsements. It is looking for candidates that will continue coverage by Wisconsin Physicians Services (WPS)—no matter what else is available. It is also telling the incumbents what kind of treatment to expect from executive director John Matthews if the incumbent takes his or her board role seriously enough to represent the kids’ interest at the negotiating table. For an example, see MTI’s newsletter for late January:
http://www.madisonteachers.org/Solidarity/Solidarity%2006-07/solid012207.pdf [65K PDF]
By Invitation Only: How the MMSD-MTI Health Insurance Task Force Limited Its Options
In June of 2005, when the majority of the Madison School Board approved the two-year collective bargaining agreement with the teachers union, the agreement included a task force to study and make recommendations on possible changes in health insurance coverage for the teachers, the majority of the district’s employees. Task force members would be the superintendent and his appointees and John Matthews, exuective director of Madison Teachers,Inc. (MTI) and his appointees. They were to issue a report no later than February 15, 2006.
From the beginning, the task force provision was a great deal for the teachers union. It was risk-free. If the parties could identify health insurance savings, the savings would go directly to increase teacher wages during 2006-07. The parties would re-open the contract to switch dollars from this important fringe benefit to wages. If not, the teachers would keep the current coverage and current wages.
A gain for the district was not so easy to identify. Superintendent Art Rainwater talked about the potential health insurance savings as a benefit in future negotiations. Lowering health insurance costs during 2006-07 would allow the district to continue high quality health insurance coverage for its teachers (as we should) and go into future negotiations with a reduced base for health insurance costs. With health insurance costs for all employees running at about $35M per year, any longterm reduction would help the board redirect significant dollars to school programs and staff.
If the task force had used the year to take a comprehensive, objective look at health insurance alternatives for the teachers, the school board might expect an important report this week. It would tell the board how dollars currently going to health insurance could be used for wage increase at no loss in quality of care for district employees. I don’t expect anything like that because we have not seen a serious effort to seek out alternative insurance proposals and evaluate them and the board has exercised no oversight or direction.
The task force has met twice at MTI headquarters, on January 11 and January 25. It did not solicit a wide range of proposals for health insurance for the teachers.
Instead, the task force invited the current providers, Wisconsin Physicians Services and Group Health Cooperative, plus Dean Care and Unity to make presentations. They did not invite Alliant (whose insurance is good enough for MMSD administrators and the custodial union), Physicians Plus (a very competitive local provider with a doctors’ network that overlaps the current providers), the State Health Plan (open to school districts) or WEA-IT (a company associated with the Wisconsin Education Associations Council). John Matthews, who continues to serve on the Board of Directors for WPS, did most of the questioning of the insurance companies at the task force meetings. The gist of his questions for Dean Care and Unity were whether they could provide what WPS currently provides, according to him.
Very disappointing start for MTI-MMSD health insurance task force
On Wednesday, January 11, representatives of Madison Teachers, Inc. (MTI) and the Madison school district met at the union’s headquarters for three hours. MTI Executive Director John Matthews chaired the meeting. It was the first of two meetings at which MTI and MMSD will supposedly explore the potential for savings on health insurance costs for the teachers. Those expecting a serious effort by union and district representatives to compare costs and services from a range of health insurance providers and press the companies for savings will be seriously disappointed.
There were two presentations at the meeting: one from representatives of Wisconsin Physicians Services (WPS) and one from Group Health Cooperative (GHC). Despite a promise from the board president and superintendent that the meeting would be videotaped, the district did not tape the meeting. So far only the text for the WPS presentation (with accompanying PowerPoint) is available for public review.
At the meeting on January 25, 2006—also at MTI’s headquarters at 821 Williamson Street beginning at 1 p.m.—the task force will hear presentations from representatives of Dean Care and Unity. There has been no explanation of why there will not be presentations from Physicians Plus or the State Group Health Plan. Both offer services comparable to those that teachers currently receive under the collective bargaining agreement between the parties at competitive rates.
Collaboration or collusion: What should the public expect from MMSD-MTI Task Force on Health Insurance Costs?
In a recent letter to the editor of Isthmus, KJ Jakobson asks “whether the new joint district-union task force for investigating health insurance costs be a truly collaborative effort to solve a very costly problem? Or will it instead end up being a collusion to maintain the status quo?”
Here is the full text of the letter, published on August 10, 2005, and her challenge to the Madison School Board.
Shephard: Madison Schools WPS Insurance Proves Costly
Jason Shephard emailed a copy of his article on Madison Schools’ Healthcare costs. This article first appeared in the June 10, 2005 issue of Isthmus. The Isthmus version includes several rather useful charts & graphs that illustrate how the Madison School District’s health care costs compare with the City and County. Pick it up.
“When you call WEA Trust, not only do they know how to say Oconomowoc, they know where it is on a map,”
The company insured the vast majority of school districts before former Gov. Scott Walker’s Act 10 in 2011 blocked unions from negotiating over benefits, which led school districts to shop for cheaper alternatives, resulting in a stark revenue loss for the company. Conservatives heralded the change, saying it saved school districts tens of millions of dollars around the state.
“For years taxpayers across the state were getting a raw deal,” Walker said in a 2012 press release. “Collective bargaining stymied competition for benefits in the health insurance market, and instead directed property tax revenue to those affiliated with big government union bosses,” adding taxpayers were saving millions with the changes he enacted.
WEA Trust has since expanded to cover state, county and municipal workers.
WEA Trust spokesperson Steve Lyons said Act 10 had nothing to do with the company’s decision to pull out of the health insurance market in Wisconsin.
2014: 25.62% of Madison’s budget to be spent on benefits.
Commentary on the Madison School District’s healthcare costs
According to MTI’s memo, health insurance changes under consideration include:
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Moving future retirees from health insurance plans offered through the district to the state Department of Employee Trust Funds’ Local Annuitant Health Program, a relatively new program for retired public employees.
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Increasing employee premium contributions for teachers and other employees from 3% to 6% and for certain hourly workers, such as security assistants, from 1.25% to 2.5%.
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Adding a $100 deductible for individual plans and $200 for family plans.
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Dropping GHC and replacing it with a plan through Quartz.
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Increasing employee premium contributions to 10% or 12%.
Keillor said a major increase in employee premium contributions is a “nonstarter.”
“We have not gotten any kind of sense over one that’s more preferred,” he said of the options under consideration. “Right now, I’d say none of these are preferable options to folks.”
But Keillor acknowledged the union doesn’t have a say in the decision other than amplifying the voices of employees because Act 10 — the 2011 law that severely limited the power of most public-sector unions — restricts unions to only negotiating on base wages.
Madison’s taxpayer supported K-12 school district, despite spending far more than most, has long tolerated disastrous reading results.
Health insurance costs have long been an issue in the Madison School District.
Administrators warned that benefits were unsustainable in 2014.
Healthcare Costs & The Madison Schools
Madison Teachers Inc. and five other Madison-based unions are so concerned about significant financial losses at Group Health Cooperative of South Central Wisconsin, they’re urging members to vote for particular candidates in Group Health’s board election Thursday.
“MTI cannot stand idly by and watch GHC disappear,” John Matthews, the teacher union’s executive director, wrote in a letter last month to members.
Group Health lost $18.7 million last year after losing $15.7 million in 2013 and $5.5 million in 2012, according to financial statements filed with the National Association of Insurance Commissioners.
Kevin Hayden, Group Health’s CEO, is on leave for reasons the HMO won’t explain.
Group Health made $364,000 the first quarter of this year and expects a “substantial improvement over 2014,” a statement by board president Ken Machtan said.
The losses were covered by “substantial reserves so no debt was accumulated,” Machtan said. Group Health “continues to maintain a healthy reserve,” he said.
Healthcare costs have long been a significant issue in the Madison School District’s budget.
Madison School Board Tension over Spending/Taxes & Compensation
Gov. Scott Walker says the changes he has rammed through the Legislature will give school districts and local governments “the tools” they need to withstand the severe cuts in state aid his budget will deliver. What he doesn’t get into is how the tensions caused by his agenda will divide the members of these bodies, as they have the state as a whole.
One example of this is the Madison school board, where disagreements over the impact of Walker’s actions have spurned an ugly exchange, in which school board member Lucy Mathiak lobbed an F-bomb at a fellow board member, Marj Passman.
The exchange happened yesterday, March 14. Passman was contacted by a Madison school teacher who felt Mathiak had been dismissive of the teacher’s concerns, urging her to “get over yourself.” Passman, who allows that board members have been deluged with angry emails, says she expressed to Mathiak that she agreed this response was a little harsh.
Somewhat related: Jason Shepherd: Going to the mat for WPS
School board yields to pressure to keep costlier insurance option
Suzanne Fatupaito, a nurse’s assistant in Madison schools, is fed up with Wisconsin Physicians Service, the preferred health insurance provider of Madison Teachers Inc.
“MTI uses scare tactics” to maintain teacher support for WPS, Fatupaito recently wrote to the school board. “If members knew that another insurance [plan] would offer similar services to WPS and was less expensive – it would be a no-brainer.”
WPS, with a monthly price tag of $1,720 for family coverage, is one of two health coverage options available to the district’s teachers. The other is Group Health Cooperative, costing $920 monthly for a family plan.
During the past year, the Madison school board has reached agreements with other employee groups to switch from WPS to HMO plans, with most of the savings going to boost pay.
In December, the board held a secret vote in closed session to give up its right to seek health insurance changes should negotiations on the 2007-09 teachers contract go into binding arbitration. (The board can seek voluntary insurance changes during negotations.)
Lucy has been a long time friend and I have long appreciated her activism on behalf of students, the schools and our community.
A Health Care Cost Win for the Madison School District & A Pay Raise for Madison Teacher’s Clerical Unit
Nearly 200 employees of the Madison School District who currently have health insurance provided by Wisconsin Physicians Service will lose that option, saving the district at least $1.6 million next year.
But the real savings in eliminating what has long been the most expensive health insurance option for district employees will come in “cost avoidance” in the future, said Bob Nadler, director of human resources for the district.
“It’s a big deal for us – it really is,” Nadler said.
“It certainly will be a benefit to both our employees and the taxpayers,” said Superintendent Art Rainwater, adding that the savings were applied to salary increases for the employees affected.
The change, which will take effect Aug. 1, is the result of an arbitrator’s ruling that allows the district to eliminate WPS coverage as an option for members of the clerical unit of Madison Teachers Inc., and instead offer a choice of coverage by Group Health Cooperative, Dean Care or Physicians Plus at no cost to employees. Those employees previously had a choice between only WPS or GHC.
Currently, the district pays $1,878.44 a month for each employee who chooses WPS family coverage and $716.25 for single coverage.
For Dean Care, the next highest in cost, the district will pay $1,257.68 per employee a month for family coverage and $478.21 for single coverage.
This year, WPS raised its costs more than 11 percent while other providers raised their costs by 5 percent to 9 percent, Nadler said.
Related:
- The high cost of WPS insurance has been a frequent topic in recent Madison School Board races and referendums.
- Concessions Before Negotiations
- Arbitrator’s Award (Sherwood Malamud) 50 Page 255K PDF
- Jason Shephard: WPS Insurance proves costly.
- KJ Jakobson: Madison Schools Health Care Cost / Benefit Analysis
The tradeoff between WPS’s large annual cost increases, salaries and staff layoffs will certainly be a much discussed topic in the next round of local teacher union negotiations.
Insurance coverage teachers’ top priority
The union is obligated to represent its members interests. The union surveyed its members prior to entering bargaining and the members spoke loudly and clearly: Retain our health insurance options.
MTI members value Wisconsin Physicians Service because it enables freedom of choice in medical providers. And MTI members value the services of Group Health Cooperative. However, both GHC and WPS coverage would be in jeopardy under the district’s proposal.
GHC has the option of increasing its premium by 2 percent for each additional HMO offered by the district. Adding other HMOs would undercut the financial base of employees necessary to maintain the foundation of the WPS option.
Insurance is supposed to assure economic stability. Revenue controls undercut this basic principal of employment benefits, as it causes even the best intentioned individuals to think about reducing the quality of insurance to provide wages. MTI members have not been willing to take that risk.
Lawrie Kobza’s statement. Madison School Board discussion & vote on the recent MTI Teacher contract. Matthews is Executive Director of Madison Teachers, Inc. and sits on the Board of Wisconsin Physicians Service.
Cut Costs for Teacher Health Insurance (Or Not)
Wisconsin State Journal Editorial:
The district proposed to add two more HMO options for teachers. If a teacher chose any of the three HMO options, the district would pay the full premium. But if a teacher chose the high-cost WPS option, the district would pay only up to the cost of the highest-priced HMO plan. The teacher would be responsible for the remainder.
The change would have saved the district enough money to permit salaries to increase 2.8 percent, rather than 1 percent.
Madison Teachers Inc., however, resisted. Although bargaining units for food service workers, custodians and other district employees had accepted similar changes to their health insurance plans, the teachers union preferred to sacrifice higher pay to maintain the WPS health insurance option.
The School Board’s mistake was to cave in to the union’s position. While the cost to taxpayers was the same whether money was devoted to health insurance or salaries, it was in the district’s long-term interest to control health insurance costs and shift more money to salaries.
Audio / Video and links of the Madison School Board’s discussion and vote on this matter.
Lawrie Kobza’s statement.
MTI’s John Matthews offers a different perspective:
he union is obligated to represent its members interests. The union surveyed its members prior to entering bargaining and the members spoke loudly and clearly: Retain our health insurance options.
MTI members value Wisconsin Physicians Service because it enables freedom of choice in medical providers. And MTI members value the services of Group Health Cooperative. However, both GHC and WPS coverage would be in jeopardy under the district’s proposal.
GHC has the option of increasing its premium by 2 percent for each additional HMO offered by the district. Adding other HMOs would undercut the financial base of employees necessary to maintain the foundation of the WPS option.
Insurance is supposed to assure economic stability. Revenue controls undercut this basic principal of employment benefits, as it causes even the best intentioned individuals to think about reducing the quality of insurance to provide wages. MTI members have not been willing to take that risk.
An open letter to the Superintendent of Madison Metropolitan Schools
Dear Mr. Rainwater:
I just found out from the principal at my school that you cut the allocations for SAGE teachers and Strings teachers, but the budget hasn’t even been approved. Will you please stop playing politics with our children education? It?s time to think about your legacy.
As you step up to the chopping block for your last whack at the budget, please think carefully about how your tenure as our superintendent will be viewed a little more than a year from now when your position is filled by a forward-thinking problem-solver. (Our district will settle for no less.)
Do you want to be remembered as the Superintendent who increased class size as a first step when the budget got tight? Small class size repeatedly rises to the top as the best way to enhance student achievement at the elementary level. Why would you take away one of best protections against federal funding cuts mandated by the No Child Left Behind Act? Rather than increase pupil to teacher ratios, have you checked to see if the pupil to administrative staff ratio has been brought closer to the state-wide average? (In 2002, Madison Metropolitan schools were at 195 children per administrator; the rest of the state averaged 242 children per administrator.) Have the few administrative openings you?ve left unfilled over the past few years actually brought us into line with the rest of the state?
Sun Prairie Cuts Health Care Costs & Raises Teacher Salaries – using the same Dean Healthcare Plan
Milwaukee reporter Amy Hetzner:
A change in health insurance carriers was achieved by several Dane County school districts because of unique circumstances, said Annette Mikula, human resources director for the Sun Prairie School District.
Dean Health System already had been Sun Prairie’s point-of-service provider in a plan brokered by WEA Trust, she said. So, after WEA’s rates increased nearly 20% last year and were projected for a similar increase this year, the district negotiated a deal directly with Dean.
When the Dean plan goes into effect Sept. 1, the district’s premiums will drop enough that it can offer a starting salary $2,000 above what it paid last school year and yet the health plan will stay the same, Mikula said. Several other Dane County districts also have switched to Dean.
“I don’t see that our teachers made a concession because really the only thing that’s changing in theory is the name on the card,” she said. “But for the name on the card not to say WEA is huge.”
According to the school boards association, fringe benefits made up 34% of the average teacher’s compensation package in the 2004-’05 school year vs. 24% less than two decades before.
Sun Prairie School District website.
Jason Shephard noted earlier this year that the most recent attempt by the Madison School District to evaluate health care costs was a “Sham(e)”:
Last week, Madison Teachers Inc. announced it would not reopen contract negotiations following a hollow attempt to study health insurance alternatives.
Not to put too fine a point on it, but anyone who suggests the Joint Committee on Health Insurance Issues conducted a fair or comprehensive review needs to get checked out by a doctor.
The task force’s inaction is a victory for John Matthews, MTI’s executive director and board member Wisconsin Physicians Service.
Losers include open government, school officials, taxpayers and young teachers in need of a raise.
From its start, the task force, comprised of three members each from MTI and the district, seemed to dodge not only its mission but scrutiny.
Hoping to meet secretly until Isthmus raised legal questions, the committee convened twice for a total of four hours – one hour each for insurance companies to pitch proposals.
No discussion to compare proposals. No discussion about potential cost savings. No discussion about problems with WPS, such as the high number of complaints filed by its subscribers.
The Madison School Board recently discussed their 2006/2007 goals (my suggestsions). The Wisconsin State Journal noted that there are some early positive signs that things might change.
What a Sham(e)
Jason Shephard, writing in this week’s Isthmus:
Last week, Madison Teachers Inc. announced it would not reopen contract negotiations following a hollow attempt to study health insurance alternatives.
Not to put too fine a point on it, but anyone who suggests the Joint Committee on Health Insurance Issues conducted a fair or comprehensive review needs to get checked out by a doctor.
The task force’s inaction is a victory for John Matthews, MTI’s executive director and board member Wisconsin Physicians Service.
Losers include open government, school officials, taxpayers and young teachers in need of a raise.
From its start, the task force, comprised of three members each from MTI and the district, seemed to dodge not only its mission but scrutiny.
Hoping to meet secretly until Isthmus raised legal questions, the committee convened twice for a total of four hours – one hour each for insurance companies to pitch proposals.
No discussion to compare proposals. No discussion about potential cost savings. No discussion about problems with WPS, such as the high number of complaints filed by its subscribers.
Case closed. Never did the task force conduct a “study” and issue a “report” of its “findings,” as required by last year’s contract settlement.
Conspiracy theorists point to the power of Matthews – both in getting the district to play dead and in squelching any questions about conflicts of interest based on, as reported last week, his $13,000 income from WPS.
While the school board is often accused of dodging tough issues, this tops the list. A change in insurance could have resulted in higher pay for teachers and, some argue, could save the district millions in the long run.
Background links and articles here. Link to current school board members. Governance is another significant issue in the April 4, 2006 Madison School Board election.
Teachers bar shift in health coverage
Madison’s teachers union said Friday it will not agree to reopen its contract with the School District to renegotiate health-care benefits, dashing hopes the district could find cheaper coverage.
A joint committee of district and union representatives has been studying rising health- care costs, but both sides had to agree to reopen the 2005-07 contract to take any action. Either way, officials say taxpayers would not have seen savings, at least not in the short term.
John Matthews, executive director of Madison Teachers Inc., said a strong majority of union members like the coverage they have and don’t want to jeopardize it, even though any savings would have gone to higher salaries.
“Members of MTI have elected to have a higher quality insurance rather than higher wages, and that’s their choice,” he said.
By Doug Erickson, Wisconsin State Journal, February 18, 2006
derickson@madison.com
The Next Retirement Time Bomb
Milt Freudenheim and Mary Williams Walsh:
The pressure is greatest in places like Detroit, Flint and Lansing, where school systems offered especially rich benefits during the heyday of the auto plants, aiming to keep teachers from going to work in them. Away from those cities, retiree costs may be easier to manage. In the city of Cadillac, 100 miles north of Grand Rapids, government officials said they felt no urgent need to cut benefits because they promised very little to begin with. Instead, Cadillac has started putting money aside to take care of future retirement benefits for its 85 employees, said Dale M. Walker, the city finance director.
Ohio is one of a few states to set aside significant amounts. Its public employee retirement system has been building a health care trust fund for years, so it has money today to cover at least part of its promises. With active workers contributing 4 percent of their salary, the trust fund has $12 billion. Investment income from the fund pays most current retiree health costs, said Scott Streator, health care director of the Ohio Public Employee Retirement System. “It doesn’t mean we can just rest,” he said. “It is our belief that almost every state across the country is underfunded.” He said his system plans to begin increasing the employee contributions next year.
The Madison School District’s Health insurance costs have been getting some attention recently:
- WPS Insurance proves Costly – Jason Shepherd
- “Important Facts, Text and Resources in Consideration of Issues Relevant to Reducing Health Care Costs in the Madison Metropolitan School District In Order to Save Direct Instruction and Other Staffing and Programs for the 2005-06 School Year” – Parent KJ Jakobson
- MMSD/MTI Joint Insurance Committee is holding the first in a series of meetings to discuss healthcare costs at MTI’s office on January 11, 2006 @ 1:00p.m. via the BOE Calendar
- Many more health care related blog posts are available here
Teacher Health Insurance Costs: Why They Matter
Madison Teachers, Inc., the Madison teachers’ union, has recently ratified its collective bargaining agreement with the Madison school district for 2005-06 and 2006-07. Later this month, the Board of Education will have its chance to ratify the agreement, although the board gave preliminary assent on June 6.
On June 10, Isthmus writer Jason Shepard provided an excellent analysis of the ways that providing Wisconsin Physicians Service (WPS) to the teachers drives up the cost of each contract. The article also questions the relative quality of the WPS coverage. See “District ties to WPS prove costly”, available at many locations in Dane County.
The following graphs, based on data from MMSD, illustrate the impact of high cost WPS coverage on the cost of the two-year contract and the extent to which access to WPS coverage for roughly half of the teachers receiving health insurance through MMSD erodes wage gains.
“Conflict of Interest”?
Christina Daglas article in the Cap Times on 6/8/05 refers to John Matthews, head of MTI, and his position on the board of WPS the insurance company that provides policies to the Madison school teachers as not having a conflict of interest. I have no information that Mr. Matthews has done anything wrong however, I strongly dispute the fact that this is not a conflict of interest. This is the first I have heard of his position on the board of WPS. I have asked the board many times why teachers are under such an expensive health care contract when many families in the community of Madison are well served by U.W. providers under a less expensive program, mine included. I was told many times the cost savings would be small to switch to a different carrier but this newly revealed information makes me question whether that is true or not. Per the Capital Times, Mr. Matthews fails to see a conflict of interest…..he fails to see a conflict of interest. I guess I keep repeating this statement and wondering how he can not see a conflict of interest. Anyone else see a conflict of interest?
