You've seen the ongoing conversations the City is having with employees over health insurance; the schools are having that conversation, too.
Currently, the Worcester Public Schools have 2235 employees who have a 75/25 split (that's 75% of costs carried by the city; 25% of costs carried by the employee) on health insurance. They also have 504 who have an 80/20 split on health insurance. (You can see a chart of who has what on page 16 [online edition] of the budget presentation.)
Were all employees to switch to a 80/20 split, Worcester would have a one time savings of $3.3 million dollars.
And subsequently health insurance would take up less of the city budget.
Tracy, you say "Were all employees to switch to a 80/20 split, Worcester would have a one time savings of $3.3 million dollars."
ReplyDeleteIs that right? or do you mean if all employees were to switch to a 75/25, the city would pay less.
I'm confused....
I mean both, Joe.
ReplyDeleteBecause the schools have already budgeted for the larger amount for FY10, it would be a one time $3 million savings (money we thought we needed that we didn't). We could apply that to just about anything.
After that, yes, the city would pay less in all subsequent years.