By David Vitrano

L’Observateur

RESERVE – Faced with a 17-percent increase in employee health insurance rates from former provider Blue Cross/Blue Shield, the St. John the Baptist Parish School Board was forced to choose between the option of reducing benefits or increasing spending.

At a special meeting Thursday evening, the Board opted for fiscal responsibility.

In light of increased retirement fund spending and a possible reduction in MFP funding for the next fiscal year, Executive Director of Business and Finance Felix Boughton urged, “We do need to save as much as we can.”

Ultimately, the Board selected United Health Care’s plan 7M6-J, which actually reduces the district’s insurance costs by 3.42 percent but also agreed to put the savings into an escrow account for future cost increases.

The new plan, which will cost the district about $8.15 million, increases deductibles and co-pays for employees.

Members of the School Board realized the plan would put some employees in a tight spot financially and wrestled with the two options that were being considered for some time.

The other option — 7NM-P, which would have increased insurance costs by 1.96 percent, still increased deductibles but paid 100 percent of most costs after the deductible was met. The plan that was chosen pays 80 percent of most costs after the deductible.

Said Board Vice President Patrick Sanders, who supported option 7NM-P, “Without the employees we can’t educate the children … I have to be concerned about them as well as the children.” He added, “I can’t worry about next year right now.”

Other board members, however, were worried about next year.

Board member Russ Wise said, “We have no choice but to reduce the costs we are incurring every year. … It’s the only way we are going to be able to meet our obligations next year.”

Board President Gerald Keller concurred, saying, “I promise you this will hurt us next year.”

Testimony from Garyville-Mt. Airy Magnet School bookkeeper Marie Jackson made the board’s decision all the more difficult.

“A cost like that out of pocket,” she said, “I wouldn’t be able to live.”

St. John Association of Educators representative Iona Halloway added, “We don’t want to tax the employees again,” referring to the four unpaid furlough days district employees had to take this year to avoid layoffs.

Further complicating the matter was the fact that the Insurance Committee, which normally would recommend a plan to the board, failed to reach a consensus earlier in the week. Although it managed to whittle the 27 plans presented down to two, the committee ultimately left it up to the School Board to hash it out.

Among the major changes to come with the new health insurance plan are a $500 deductible for employees, a maximum out-of-pocket expense of $2,500 annually and a $200 co-pay for emergency room visits.