Simply put, the health care system:
Favors teachers over other K-12 employees such as custodians and bus drivers.
Favors single individuals over families.
It’s time to erase the favoritism and create a system that is equitable and affordable for all kindergarten through 12th-grade employees.
State Auditor Brian Sonntag did this state and the Legislature a big favor in February when he released the findings of a performance audit on the K-12 employee health care system. He said the state can erase the inequities and at the same time save state taxpayers up to $180 million every budget cycle.
Lawmakers next January must not miss the opportunity to reform this portion of state government – even if the teachers’ union prefers the status quo.
It’s hard to understand how anyone could support the current system, but the Washington Education Association does. Consider these audit findings:
In 2009-10, the cost of health benefits for K-12 employees was $1.2 billion.
State taxpayers paid $780 million, or 64 percent of the total. Taxpayers, then, have a sizeable investment in the creation of a fair and efficient health care insurance system that saves tax dollars.
The K-12 system has a mind-numbing patchwork of 200 medical plans offered through 10 insurance companies. Imagine the inefficiencies in that many plans versus a consolidated plan that enjoys the benefits of pooling.
The system produces very different out-of-pocket expenses for different K-12 employees. About 27 percent of employees who insure just themselves, pay no premiums. (Wouldn’t that be nice to have free medical coverage with taxpayers picking up the full premium cost?). Those K-12 employees who buy family coverage pay an average monthly premium of $500. That disparity is in direct conflict with the Legislature’s intent to eliminate major differences between classes of employees.
Consolidation or other reforms of the K-12 system could save up to $180 million per biennium.
Sonntag identified three options:
Streamline the system to improve efficiency, transparency and stability.
Standardize coverage levels for more affordable, quality medical benefits.
Reduce costs by restructuring the health benefits system.
The Legislature responded with a decision not to pay for medical inflation for the next two years. That means premiums for employees are going to increase, likely putting health care coverage beyond the reach of low-paid public education workers.
Additionally, a $1.2 million study for systemic changes is under way by the Health Care Authority with a goal of having a recommendation to the Legislature by January when lawmakers reconvene.
Public School Employees of Washington, which represents about 27,000 custodians, security guards, secretaries, bus drivers – those employees working behind the scenes – is fully supportive of reforms because it’s their workers who are being shortchanged by a system that favors teachers over other education workers.
The average teacher makes $51,000 a year compared with the other school employees – many are part time – who average $25,000 a year. It is no wonder those cooks and paraeducators cannot afford medical insurance under the same plan with teachers who make twice as much money.
“Our members are drowning. We can’t allow it to continue,” said Doug Nelson, lobbyist for the Public School Employees of Washington.
“We’re desperate,” he said.
Lawmakers appear to be receptive to that message. The challenge, of course, is to overcome objections of the insurance company lobbyists and the teacher’s union – both powerful lobbying forces in Olympia.
They prefer the current system because it favors teachers over other K-12 workers. They also like the status quo because they take a 5.4 percent administrative cost off the top and employ dozens of school district workers to manage those 200 health care plans.
What we don’t understand is why teachers continue to tolerate the inequities that give single educators a big break on premium payments at the expense of married teachers who want their family members covered.
There has always been a strong ethic of “local control” in this state’s public education system. We understand that. But that local control has led to a patchwork health care system that is inefficient and unfair. Auditor Sonntag’s thorough analysis shows the inequities and waste of tax dollars. That’s why lawmakers must respond with an overhaul of the K-12 employees health care system in January.
