Monday, June 1, 2009

on the 75/25 split

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.

2 comments:

  1. 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."

    Is that right? or do you mean if all employees were to switch to a 75/25, the city would pay less.

    I'm confused....

    ReplyDelete
  2. I mean both, Joe.
    Because 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.

    ReplyDelete

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