Community School System Increases Wages For Educators Without Increasing Insurance Costs
A school system committed to providing an education that propels all their students to success was in search of a better benefits plan for its staff. The success of students is closely tied to the success and support of the educators. With JS Clark’s assistance, the school system’s HR team was able to support its educators’ bottom-line.
To find significant cost savings in the school district’s insurance offering so that it could afford a wage increase for educators without increasing insurance contributions.
At the time JS Clark engaged with this client, the school system had been purchasing health insurance through a Third Party Administrator (TPA) that was popular with educators. The school system had used this TPA for many years and staff were reluctant to change. Through that plan, the district offered Blue Cross/Blue Shield of Michigan medical coverage through a PPO network model to its enrolled educators. This plan commanded a high premium, with a $500 deductible for enrollees.
JS Clark leveraged research, analysis and the strength of its carrier network to create a plan design strategy that would help the district meet its objectives. It proposed a benefits program comprising both a BCBSM PPO option, as well as an HMO option through Blue Care Network (BCN). Both PPO and HMO options carried a significantly reduced premium, but a $5,000 deductible. However, the plans were structured so that enrollees still were responsible for only a $500 deductible, with the district covering the $4,500 balance if, and when, an enrollee’s claims required.
Through strong relationships and creative negotiation, the agency was able to save the school district approximately $3.7 million over three years as a result of moving its previous insurance plan/company to a Blue Cross Blue Shield/Blue Care Network program, directly. An additional benefit to the district is its offering of increased coverage choices to its employees, which is expected to result in healthier, happier educators.