County to School System: Dual Insurance Plan Must End

UPDATED (6:27 p.m.)—Baltimore County budget officials have told counterparts at the county school system that it will lower its subsidy for health insurance in the upcoming budget.

Sources close to the county budget office tell Patch that the county plans to subsidize the plan for 17,000 school system employees at an 80 percent level beginning July 1, 2012.

The move would effectively end what has been a dual system of health insurance where general county employees pay one rate while school system employees pay a lesser amount.

Currently the county pays 90 percent of the health care costs for school system employees. That's higher than the 80 percent the county has paid for its own general government employees over the last five years.

Don Mohler, a spokesman and chief of staff to County Executive Kevin Kamenetz, while not confirming information about ongoing budget negotiations, said Wednesday night that the saving to the county would a minimum of $16 million annually.

Extended back over the last five years, the county could have saved $90 million.

The source, speaking on condition of anonymity, said the county will only fund the school system at the 80 percent level. If the school system refuses to adjust it's own budget and ask employees to pay more, the balance would likely have to come out of the budget for classroom operations.

Mohler repeatedly declined to comment on specifics of the report.

"I can confirm that health care costs are a very, very serious concern for this administration," Mohler said. "As for commenting on the specifics of any negotiations, I cannot do that."

Mohler said "escalating health care costs continue to be a concern for governments around the country and Baltimore County is not immune."

"Clearly, this economy is not improving," Mohler said. "This is an executive that has no stomach for a tax increase at this time."