St. Martin school system employees to see jump in group health premiums

St. Martin School Board members last week approved changes to the district’s self-funded group health plan that will spread almost $1.2 million in increased expenses among system resources and higher premiums for employees and retirees.
A report from Arthur J. Gallagher & Co., which administers the district’s medical and pharmacy plans, pointed out that parish health costs are increasing at a rate of roughly 5 percent per year, somewhat below the national average of 7 to 8 percent.
The board was presented with four options to cover the rising costs, ranging from taking the entire amount from the existing $4.6 million health fund balance, to taking smaller amounts from the fund balance, benefit changes that lower expenses, rate increases and the general fund.
Although District 7 representative Richard Potier urged the use of the health fund balance to cover the entire cost, board members approved the staff-recommended alternative that will siphon $433,349 from the health fund balance, $69,768 from the general fund and $12,312 from special grants. Another $532,367 would be saved through benefit changes and $433,349 will come from an increase in premiums paid by employees and retirees.

PREMIUM HIKES
Under the board approved plan, the premium for employee only coverage will increase by $4 per month, to $389; employee and spouse up $8 to $516; employee and family up $11 to $525; retiree under 65 up $9 to $91 per month; retiree over 65 up $3 to $326.
It was pointed out that the number of retirees covered by the health plan is about equal to the number of active employees in the program.