The rising costs of health care is a significant issue that must be addressed in EGUSD. The District has reached agreements with all of its bargaining groups – the American Federation of State, County Municipal Employees (AFSCME), the Amalgamated Transit Union (ATU), the California State Employees Association (CSEA), the Elk Grove Education Association (EGEA), EGTEAMS and the Psychologists and Social Workers Association (PSWA) – for an 80/20 employer/employee split in health care premiums beginning in 2012-2013 based on the low-cost plan.
In addition, the agreements stipulate an opportunity for employees to receive a Wellness Rebate equal to 5% of the total premium costs of the district’s low cost health plan based on the subscriber level selected for that year. Each unit member who submits to the district a Wellness certification that verifies that the unit member has satisfied all of the Wellness requirements, shall receive a Wellness Rebate.
The district’s low-cost plan is currently provided by Kaiser Permanente. For employees and their families who select Health Net, employees pick up the difference in cost between Kaiser and Health Net.
For Elk Grove Unified the rising costs of health care have meant that over the past nine years, the district’s costs for covering only medical benefits rate increases have risen by almost 200 percent (197.92%). In the last nine years, EGUSD’s health care premium rates have increased by 135%. In 2012-2013 the cost to the district of health, dental and vision benefit premiums for all employees is over $56 million.
The following are the annual increases for the low cost district plan for the last six years.
- 2007-08 18.58%
- 2008-09 10.14%
- 2009-10 8.86%
- 2010-11 5.00%
- 2011-12 6.47%
- 2012-13 9.00%
Health Benefits – Financial History and Trends
Presented to the Board of Education on January 11, 2011
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