Menomonee Falls — The Menomonee Falls School Board passed a slew of insurance changes Monday that, when combined with other management strategies, are projected to save the School District $900,000 over the years.
"We have done a variety of things — managing our plan designs, managing our plans cost, and also managing trend," Human Resources Director Christiane Standlee said.
The board decided to switch to National Insurance Services from WEA Trust to provide life insurance, long-term disability and, for the first time, voluntary short-term disability insurance. Short-term disability will be offered, but is 100 percent employee paid. Comparing the WEA Trust renewal rate and the bid from NIS, the district will have an actual savings of nearly $150,000 and offer employees more coverage.
In the past, some employee groups were not offered district-paid life insurance. By changing to NIS, the district can offer basic life insurance to every employee throughout the district, and are still saving money.
The School District is planning to stay with Humana as its health insurance provider, though the plan options are changing slightly for active employees, officials decided Monday. The district will offer two plans to active employees, Plan 3 and 3A. Plan 3 is similar to the current plan offered.
The only difference in the plans is that Plan 3A does not offer any new health reimbursement arrangement dollars, but the premium is less expensive. Plan 3 does offer HRA dollars. In Plan 3, the HRA would reimburse employees for the second half of the deductible. In plan 3A, employees would not receive any new HRA dollars, but they could use any rollover HRA dollars they have from the 2013 plans.
Retirees are offered a third plan, Plan 1A. It is similar to the plan currently in place but the single deductible is increasing by $250 and family deductible is increasing by $500.
When forecasting future savings, it is projected to save $900,000. The savings is based on a projection of what the current, compounded insurance would cost over the years if they did not change plans compared with new plan projections costs. Because of favorable claims experience, there is a zero increase in the Humana renewal costs.
"We haven't been over spending in the past, we are trying to protect the future," School Board President Faith VanderHorst said.
When comparing the entire salary and benefit package to other districts, Standlee said Memomonee Falls is competitive.
"We do stack up to other districts in our surrounding area," Standlee said.
Open enrollment for district employees begins in November, with coverage beginning Jan. 1.
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