School health premiums rise 5 percent in Jackson, half that of Cape Girardeau

With plenty of public school systems seeing jumps in health insurance premiums, the Jackson School District may be counting its savings.

The Jackson School Board recently approved a health insurance renewal contract with carrier Anthem Blue Cross Blue Shield for 2011. The district's premiums will rise 5 percent, which is lower than the projected 10 percent increase for the Cape Girardeau School District and below the projected national average uptick of 8.2 percent.

"This seems like it's a very fair adjustment," superintendent Ron Anderson said.

The plan covers about 490 active employees and 125 retirees, Anderson said. Beginning Jan. 1, the district will pay $497.55 per beneficiary. Employees can choose to pay for a buyup plan, which typically includes lower deductibles.

Last month, the Cape Girardeau School Board opted to put its health insurance plan out to bid after facing a double-digit increase from Anthem Blue Cross and Blue Shield. The provider, at the request of the district, trimmed its planned 19.7 percent premium increase by raising employee health costs -- deductibles, prescription drug copays and charges for office visits.

Insurance costs in large part are driven by medical loss ratios, or the amount of premiums spent on health care versus administration and profits. The Cape Girardeau School District's loss ratio was 96 percent, significantly higher than the Jackson School District's rate.

Cape Girardeau superintendent Jim Welker said bids from carriers are scheduled to be in by the end of the week, in advance of Wednesday's school board meeting. The meeting was moved up by nearly a week to give staff more time to enroll employees in the plan the board approves.

"We did have interest expressed by several companies, but we will know more after Friday," Welker said.

Employer health care costs for active employees are projected to rise 8.2 percent in 2011 (after projected plan changes), to an average annual cost of $10,730 in 2011, according to a recent survey of 466 large and midsize employers conducted by Towers Watson, a global professional services firm.

In Cape Girardeau, the school district this school year will pay about $4.1 million in health insurance costs, more than double what it paid a decade ago. Today, health care benefits make up about 10 percent of the district's budget.

The Jackson School District pays about $2.5 million in health insurance costs, Anderson said, asserting the expense most be monitored on an ongoing basis.

"If we had an unusual adjustment, what would we do to redirect that?" he said. "It's an annual thing and everybody [in public education] is in that same boat."

mkittle@semissourian.com

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Pertinent address:

614 E. Adams St., Jackson, MO

301 N. Clark Ave., Cape Girardeau MO