Insurance costs rise for school staff

School employees are facing higher health insurance deductibles and out-of-pocket fees as districts prepare for a federal requirement to cover all employees working at least 30 hours a week kicking in next year.

Amarillo Independent School District has self-funded health insurance, and its costs have risen $1 million this year, Chief Financial Officer Les Hoyt said. The district budgeted for this and increased its contributions, he said.

In 2015, a provision of the Affordable Care Act will require employers to provide health insurance to all employees who work an average of 30 hours a week or more.

Amarillo ISD has several hundred substitute teachers, some of which exceed the 30-hour mark regularly, Hoyt said, and he estimates the district will need to cover between 50 and 60 of them in the future.

While some school districts in the state plan to cut substitutes' hours to keep them under the 30-hour threshold, Hoyt said that isn't part of Amarillo ISD's approach at the moment.

"It's been discussed, but we really want to make sure that we do what's right for the children in the classroom," Hoyt said. "We have to be very careful that we don't disrupt the instructional experience in the process."

Hereford and Pampa independent school districts also don't plan to cut hours, superintendents said.

"We're still figuring out what the ramifications of the system are, but the guiding principle will be to do right by the people, so if that costs us a little more, it costs us a little more," Pampa ISD Superintendent David Young said.

About 60 percent of Texas school employees are enrolled in the state's ActiveCare plan from the Teacher Retirement System of Texas.

Starting Sept. 1, ActiveCare will eliminate one of its health insurance plans and some deductibles will go up $100 to $200. Caps on out-of-pocket costs will also rise $2,000 to $5,000 in some plans, according to TRS.

Per employee, the state is required to contribute $75 per month, and school districts must contribute at least $150 per month, said Ann Fickle, legislation director for Texas Classroom Teacher Association.

Last year, Canyon ISD raised its monthly contribution $25 to $275 per employee, said spokeswoman April McDaniel. Per employee, Pampa ISD contributes $250 each month and Hereford ISD contributes $225 each month, superintendents said.

"Unfortunately, all of the increases are passed on to the employee," said Hereford ISD superintendent Kelli Moulton. "Our board has recognized that and has provided pay raises this year, with a 2.5 percent increase for salaried employees and a 6.6 percent increase for hourly. However, we realize that most of our employees will not see an increase in take-home pay or the bottom line because of rising health care costs."

This year, Pampa ISD employees will receive a 3 percent raise, Young said.

As districts attempt to keep up with these costs, the state's share hasn't increased since ActiveCare was created, Fickle said, and employee salaries have remained flat for the most part.

"I think a lot of employees are seeing, effectively, cuts on take-home pay between flattening salary increases and rising insurance rates and other costs," she said.

A state hearing next week will focus on school employee health insurance, as well as state retirement plans.

"What we'd like to see is not cutting back on benefits or changing the structure of plans, but what we really need is funding assistance from the state," Fickle said.