As President Barack Obama ready to take the airwaves to defend his health care reform last week, school officials Hernando put a little ‘auto insurance sticker shock.
district’s insurance company, Blue Cross Blue Shield of Florida, is looking for a 21. 5 percent rate increase.
“We expected that increases in health insurance, but not really expecting an increase of 21 percent,” said Heather Martin, executive director of the district’s business services. “It ‘s disappointing in these times of crisis.”
The actual increase will probably occur in at least a few percentage points lower than that, Martin said. Last year, for example, Blue Cross began with an increase of 18 percent. To adjust the plans and major franchises and co-payments, both sides brought up to 12 percent.
Martin said he hopes this year will increase closer to 15 percent and that the Board of Insurance of the district – composed of members of staff and members of both unions – has moved to that number during the conversation with Cruz Azul Wednesday .
Blue Cross declined to comment beyond a statement issued through spokesman Mark Wright. “The details of any negotiations with clients are confidential. However, I can say that groups like this, the projected claims experience of the plan next year is the determining factor for the calculation of premium rates.”
In other words, the company uses the credit history of the district and what it claims to forecast for next year will be to justify the rate increase.
The history of the district is not exactly beautiful, recognized Martin.
The claims were “relatively high” in recent years, he said. Last year, Blue Cross paid more than 14 million U.S. dollars in loans.
“No one district are extremely healthy,” said Martin. “We have not improved.” Martin noted, however, that the district is “punished” by the lack of urgent care centers in the county. Forces employees to go to the emergency room of a hospital, an expensive way to get emergency care that increases the clams in the district, he said.
The school board decided in recent years for the district to absorb most or all of the increases in insurance premiums and must try to do the same this year, said board member Sandra Nicholson.
“If there is a chance to eat up, I think probably,” said Nicholson.
This could be a difficult task, considering the draft budget for this year only one million U.S. dollars in reserves that are not dedicated to any purpose.
But it would help employees who have been out of pocket cost increases, said Colin Davies, Chairman of Hernando United School Employees Union.
Davies said that some employees have decided to go without insurance because they can not afford it, and predicted that number could increase.
“You can choose whether to eat or insurance,” said Davies.
Unions accept smaller pay raises last year in exchange for more area which covers the cost of insurance premiums. Insurance is likely to dominate talks this year, said Joe Vitale, president of the Hernando teachers.
Vitali gave the kind of sentiment expressed by many Americans and that Obama says he encouraged to get health care reform done as soon as possible.
“It ‘s probably the most that is legalized extortion,” said Vitale.
Author of shares and savings for health insurance has never been so easy. . . EasyToInsureME Florida Health Insurance Texas Health Insurance
Related Blogs
