MANKATO, Minn. – Mankato Area Public Schools (MAPS) has announced a significant increase in insurance premiums for all district employees as it transitions from an insurance pool arrangement with the South Central Service Cooperative to a self-insured plan under the Health Insurance Transparency Act.
The decision to switch to a self-insured plan was made due to the renewal of the sealed bid for insurance, a process conducted every two years. While the move offers greater control over insurance costs, it comes with a price tag: a 30-percent hike in insurance premiums affecting teachers, paraprofessionals, and administrative staff alike.
Amanda Heilman, representing the district, acknowledged the challenge posed by the increased premiums but stressed that it was a necessary step given the alternative. She cited a staggering 38-percent increase proposed by the cooperative, prompting the district to explore alternative options. The chosen bid, offered through Blue Cross Blue Shield, still represented a significant increase, albeit marginally lower at 30 percent.
The decision has prompted concern among school district employees, who argue that the rise in insurance costs outpaces any contractual pay increases, effectively reducing their take-home pay. This sentiment was underscored by the submission of a formal request on Monday from employees urging the district to renegotiate insurance plans.
Linda Wensel, a member of the school district, voiced the anxieties of many employees, highlighting the economic strain faced by individuals amidst the rising costs. Questions loom over the sustainability of careers in education, with some contemplating secondary employment or even leaving the profession altogether.
As MAPS grapples with the economic fallout of the insurance premium hike, the broader implications for both employees and the district remain a focal point of concern.
