Nicolet board sticks with health insurance provider

Glendale - Employees of the Nicolet High School District will continue to receive health insurance benefits through the Wisconsin Education Association Trust after extensive review and discussion.

The School Board on Monday voted, 4-1, to renew Nicolet's contract with WEA Trust on Jan. 1. Nicolet administrators and a consultant recommended continuation of WEA Trust with the proviso a number of changes be implemented in the current plan design. Employee costs are set to increase with emergency room co-pays and prescription drug costs rising.

Rae Anne Beaudry, employee benefits insurance consultant with The Horton Group, was hired by the district to look into health care coverage options in 2012 and beyond as district officials weigh their long-term options in the next five years. Beaudry last week recommended continuing with WEA Trust and tweaking some of the finer points of coverage to get Nicolet to a break-even point in the budget.

Lack of bids narrows field

While Nicolet's board and administrators had hoped to achieve savings in 2012 with health carrier changes, Beaudry said Nicolet is still faring well because of a 5-percent decrease in rates in July.

"When you start to look at these numbers, yes, it is disappointing (to be at a break-even point), but you have to look at your starting point," Beaudry said. "There already have been savings, and the process is bearing fruit."

When the district sought bids for 2012 health insurance, invitations were extended to 11 companies; only two - WEA Trust and the Wisconsin Counties Association's Group Health Trust - provided bids. WCA Group Health Trust actually bid lower than WEA Trust by about $71,000, though the figure was not based on an intensive look at the health history of Nicolet employees.

"It was unfortunate for us, but that's the reality we've been dealt," District Administrator Rick Monroe said of the lack of bids.

Deductibles increasing

As part of the changes under the WEA Trust plan, single employees' deductibles will change from $100 to $250, while family plans will increase from $250 to $500. Emergency room co-pays increase from $100 to $150. Prescription drug coverage is being changed to a four-tier system that encourages plan holders to seek out generic options whenever possible.

School Board member Ellen Redeker voted against the proposal, citing concerns with a plan to save between $200,000 and $300,000 in overall expenses in the next five years.

"I need to know how we're going to balance our budget first," Redeker said. "I'm concerned about how that's going to be achieved."

But other board members maintained a different perspective, noting that health insurance costs are one piece of the overall budget.

"Rome was not built in a day, and we can't build our budget in five years on the backs of employees today," board member Joe Kasle said. "The point is, we're not going to balance the budget five years from now tonight."

While it is difficult to look into the future, Business Manager Jeff Dellutri said he believed savings could be achieved through a number of methods in the years ahead, including retirements and efficiencies.

"I'm not looking at layoffs," he said. "I think we've done enough of that and right-sized ourselves."