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Teachers May Pay More in Premiums: Aurora Health Care Costs Extra Under Pewaukee Contract

Posted on: Thursday, 6 April 2006, 03:03 CDT

By Amy Hetzner, Milwaukee Journal Sentinel

Apr. 6--Village of Pewaukee -- A new contract means teachers could pay more toward health insurance amid other changes for the coming year, while setting up a School District task force to study alternatives such as health reimbursement accounts.

This week, the Pewaukee Education Association and the School Board approved the agreement, which covers this year and 2006-'07.

"We value our fine teachers and respect their professionalism in the classroom and at the bargaining table," schools Superintendent JoAnn Sternke said in a written statement. "We are happy to have reached a voluntary settlement that proactively addresses rising health care costs while improving the salary schedule."

Following the lead of other districts in the Milwaukee area, including Arrowhead and North Lake, Pewaukee will switch to a health plan that requires employees to pay higher premiums if they select Aurora Health Care as their health care provider. The change is effective May 1.

"That was a good move on the part of the association and the district," said Steve Johnson, a director with Cedar Lake United Educators who was the chief negotiator for Pewaukee teachers. "Hopefully, someday it will have an impact on Aurora in Milwaukee and Waukesha County."

Aurora has been found to charge higher fees than other health care providers in the Milwaukee area, which some blame as driving the region's high increases in health costs. But Aurora officials say that is because their hospitals serve a larger share of charity care and Medicaid business than their competitors.

Although Pewaukee teachers agreed to a new health plan, which includes a discount for those who agree to regular health screening, they will still keep WEA Trust as their insurance provider. WEA Trust is a non-profit organization that was started the state's largest teachers union to provide insurance and other benefits to school employees.

As part of the contract agreement, however, teachers said they would participate in a joint task force "to study insurance issues including, but not limited to, health reimbursement accounts."

Health reimbursement accounts, which are similar to health savings accounts, have been billed as a way to reduce health care costs making consumers more conscious of what they spend on services.

Although Johnson said the talks would be serious, he also said it will take more than action Pewaukee teachers for the country to get a hold on its skyrocketing health care costs.

"We're more than willing to meet whenever they're willing to meet," he said. "I don't think changing the provider is going to be a significant difference. . . . I don't think it's going to stem the tide of these huge increases."

According to the School District, the new contract also will:

-- Increase teachers' salaries and benefits 4.07% for the current year and 4.24% in the 2006-'07 school year. That includes a 2.12% salary increase for 2005-'06 and a 1.93% pay increase for the following year.

-- Improve beginning salaries for teachers from $31,272 to $33,000 in 2005-'06 and to $34,850 the following year. Top pay will go from $64,747 to $66,384 in 2005-'06 and to $67,084 the following year.

The agreement also raises the age and experience levels required for future teachers to qualify for retirement benefits.

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Copyright (c) 2006, Milwaukee Journal Sentinel

Distributed by Knight Ridder/Tribune Business News.

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Source: The Milwaukee Journal Sentinel

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