Teachers & Health Insurance 11/4/05

<body topmargin=0 leftmargin=0 marginheight=0 marginwidth=0> <table cellpadding=0 cellspacing=0 border=0 height="100%"><tr> <td valign="top" colspan=2 height=136 BGCOLOR="#66CCCC" TEXT="#080000" bgproperties="fixed" background="04020880ezvthe.png"> <div> <FONT SIZE="5" COLOR="#CCFFFF" FACE="Arial" ><B>Clare Whitbeck's Web Site</B></FONT><B>   |  </B><B> </B><A HREF="index.htm" TARGET="_top" TITLE="Clare Whitbecks Web Site"><U><B>home</B></U></A></div> <div> <A HREF="id43.htm" TARGET="_top" TITLE="Column 2/14/05"><U>Column 2/14/05</U></A>   |   <A HREF="id46.htm" TARGET="_top" TITLE="A Day of Infamy 3/7/05"><U>A Day of Infamy 3/7/05</U></A>   |   <A HREF="id41.htm" TARGET="_top" TITLE="Dysons Bill"><U>Dyson's Bill</U></A>   |   <A HREF="id47.htm" TARGET="_top" TITLE="Excuses, Excuses 3/14/05"><U>Excuses, Excuses 3/14/05</U></A>   |   <A HREF="id51.htm" TARGET="_top" TITLE="Lots Win, Children Lose 3/28/05"><U>Lots Win, Children Lose  3/28/05</U></A>   |   <A HREF="id52.htm" TARGET="_top" TITLE="Three Strikes! 4/3/05"><U>Three Strikes!  4/3/05</U></A>   |   <A HREF="id55.htm" TARGET="_top" TITLE="Effects of Larger School Size 4/10/05"><U>Effects of Larger School  Size  4/10/05</U></A>   |   <A HREF="id70.htm" TARGET="_top" TITLE="It Was Inevitable 4/17/05"><U>It Was Inevitable  4/17/05</U></A>   |   <A HREF="id69.htm" TARGET="_top" TITLE="Its All My Fault 4/24/05"><U>It's All My Fault 4/24/05</U></A>   |   <A HREF="id57.htm" TARGET="_top" TITLE="Site Struggles 5/1/05"><U>Site Struggles  5/1/05</U></A>   |   <A HREF="id58.htm" TARGET="_top" TITLE="Learning for All 5/8/05"><U>Learning for All 5/8/05</U></A>   |   <A HREF="id59.htm" TARGET="_top" TITLE="Mechanicsville Elementary Schools Feedba"><U>Mechanicsville Elementary School's Feedback Report  5/15/05</U></A>   |   <A HREF="id60.htm" TARGET="_top" TITLE="Adventures With Miss T 5/22/05"><U>Adventures With "Miss T" 5/22/05</U></A>   |   <A HREF="id61.htm" TARGET="_top" TITLE="Less Is Better, Mr. Mattingly 5/29/05"><U>Less Is Better, Mr. Mattingly  5/29/05</U></A>   |   <A HREF="id62.htm" TARGET="_top" TITLE="A Litany for the Community 6/5/05"><U>A Litany for the Community  6/5/05</U></A>   |   <A HREF="id63.htm" TARGET="_top" TITLE="Bits and Pieces 6/12, 6/19, and 6/26/05"><U>Bits and Pieces 6/12, 6/19, and 6/26/05</U></A>   |   <A HREF="id64.htm" TARGET="_top" TITLE="Computers and Technology 7/3/05"><U>Computers and Technology  7/3/05</U></A>   |   <A HREF="id66.htm" TARGET="_top" TITLE="School Sites 7/10/05"><U>School Sites 7/10/05</U></A>   |   <A HREF="id65.htm" TARGET="_top" TITLE="11 Month School Year? 7/17/05"><U>11 Month School Year?   7/17/05</U></A>   |   <A HREF="id67.htm" TARGET="_top" TITLE="Things Could Be Worse 7/24/05"><U>Things Could Be Worse  7/24/05</U></A>   |   <A HREF="id68.htm" TARGET="_top" TITLE="Charter School Decision Overturned 7/31"><U>Charter School Decision Overturned  7/31/05</U></A>   |   <A HREF="id71.htm" TARGET="_top" TITLE="Budget Surplus and Rumors 8/7/05"><U>Budget Surplus and Rumors  8/7/05</U></A>   |   <A HREF="id72.htm" TARGET="_top" TITLE="Column 8/14/05"><U>Column 8/14/05</U></A>   |   <A HREF="id79.htm" TARGET="_top" TITLE="An Oily Situation 8/14/05"><U>An Oily Situation 8/14/05</U></A>   |   <A HREF="id80.htm" TARGET="_top" TITLE="Good Things 8/25/05"><U>Good Things 8/25/05</U></A>   |   <A HREF="id78.htm" TARGET="_top" TITLE="Whoopie!! 9/25/05"><U>Whoopie!! 9/25/05</U></A>   |   <A HREF="id88.htm" TARGET="_top" TITLE="School System to Improve 10/2/05"><U>School System to Improve 10/2/05</U></A>   |   <A HREF="id87.htm" TARGET="_top" TITLE="Challenges, Failures? 10/9/05"><U>Challenges, Failures? 10/9/05</U></A>   |   <A HREF="id89.htm" TARGET="_top" TITLE="Carver Fire 10/15/05"><U>Carver Fire 10/15/05</U></A>   |   <A HREF="id91.htm" TARGET="_top" TITLE="St. Marys County 10/23/05"><U>St. Mary's County 10/23/05</U></A>   |   <B>Teachers & Health Insurance 11/4/05</B></div> <bR> <bR> <bR> <bR> <bR> <bR> <div> </div> </td> </tr><tr> <td valign="top" width=200 BGCOLOR="#66CCCC" TEXT="#080000" bgproperties="fixed" background="041c8212ezvthe.png"> <bR> <div> <A HREF="id4.htm" TARGET="_top" TITLE="Columns"><U>Columns</U></A></div> </td> <td valign="top" height=344 BGCOLOR="#66CCCC" TEXT="#080000"> <bR> <bR> <bR> <div> Teachers & Health Insurance 11/4/05</div> <bR> <bR> <bR> <div> The teachers are negotiating again.  Word is that negotiations are stalled.  We all remember the ill feeling that resulted from the last round of negotiations.  It finally went to mediation where the teachers’ last offer was put into force by the mediator.  Considering the decline in test scores at Mechanicsville Elementary School last year when the fight between the principal Barbara Abell and teacher Margaret Palko lowered Mechanicsville from our 4th best set of test scores to 12th best, stalled  negotiations can be assumed to be not good for our students. </div> <div>      The negotiations are secret, so we can’t know who is saying what, but we can guess.</div> <div>      The school system’s Chief Financial Officer, Dan Carney, continually talks about the cost of health insurance, how much it has increased.  He has blamed the “traditional plan” for all the school system’s increased insurance costs.  He wants to eliminate the “traditional plan.”  He didn’t say much about the year end rebate  the school system received because its usage was below premium paid in  last year. </div> <div>      To understand that refund, you need to know how Blue Cross/Blue Shield (BCBS) is selling insurance these days.  The school system is essentially self insuring.  It collects estimated amounts for the teachers’ share of insurance, a share which is presently 15%, and the retiree’s share which is presently 45%, for those over 65 in the “traditional plan.”  It adds the system’s share and then pays the bill.  At the end of the year, BCBS audits the costs, adds an administrative fee, and settles up.  Sometimes there is money left over.  Sometimes, the school system has to add money to cover unanticipated costs.  BCBS cannot, since costs are guaranteedto be covered by the school system.  It does not fix the school system’s costs, but this is health plan industry these days. </div> <div>      .  The simple fact is that employer premiums for health insurance around the United States have increased 73% in the last 5 years.  The reason for the increase in costs is not the cost of insurance.  The reason is the increase in health care costs. (If you are interested, I’ll send you information on some of the reasons costs are escalating.)  </div> <div>      </div> <div>      The problem Mr. Carney keeps identifying is not a problem with our teachers.  It is a national problem.  But you can bet it’s a problem for our teachers as they negotiate.</div> <bR> <div>      And it’s a problem for the school system retirees which the teachers also represent.  The school system pays a paltry 45% for employees over 65 on the “traditional plan.”  Last year, when repeatedly asked to add $50,000 to the amount paid, the school system tacked on $25,000, then spent $50,000 on an automated dialing system to deliver messages to parents, a system which it regards as parent communication system.  In my dictionary communication is not just us telling you, it is also us listening to your reply.  But that’s another column.</div> <div>      There’s a long way to go to get the percentage paid for retired employees over 65 who chose the traditional plan to equal the percentage paid for those who chose the non-traditional plan.  Given the way BCBS figures its premiums, if the non traditional plan is cheaper, it is cheaper because the costs and therefore benefits are less.</div> <div>      . The current political climate that is permitting employers to drop health insurance for their retirees does not help the teachers.  “It won’t hurt so bad.  They have Medicare,” is the up and coming attitude.  Mr. Carney surely wants to be up and coming. </div> <div>      Anyone in this county who has to rely on Medicare for health insurance can tell you that there are expensive holes in the coverage.  The school system’s traditional wrap around plan covers prescription drugs, and some deductibles.  If it is expensive, it is because the holes in Medicare coverage are expensive.  </div> <div>      It should be noted that after January 1, 2006 the new Medicare prescription drug coverage will provide a payment to the school system for over 65 retirees.  Will it offer to return any of that cost reduction to the teachers?  Are you kidding?  Of course not.</div> <div>      So there it is.  Teachers are fighting for their health insurance coverage for themselves and for retirees.  The school system is trying to shrink that coverage.  Mr. Carney seems to think it’s all the teachers’ fault that health insurance costs are so high.  But we know whose fault it is.  </div> <div>      It’s my fault.  It must be my fault.  It couldn’t possibly be the cost of health insurance across the nation.  </div> <bR> </td> </tr></table></body>