Employee Benefits Change to Save District $1.1 Million

Moorestown School District will save $1.1 million by switching its employees' health care providers this year, though members of the union aren't keen on the change.

Effective April 1, the district will switch from the State Health Benefits Plan to Aetna. The board of education unanimously approved the change last week, after business administrator Lynn Shugars laid out the reasons for the switch, showing that increases to the state plan for the upcoming school year are projected to be roughly $250,000 higher than the amount allowed by the 2 percent cap.

With the state plan, premiums would have cost $10.9 million in 2013-14, with the district picking up $9.7 million and employee contributions coming to $1.2 million, according to Shugars. Under Aetna, the district will pay $9.8 million and employees contributing $1.1 million.

Shugars also broke down the cost per employee: according to her calculations, the district's share (for an employee making $62,450) will decrease by $2,500 under Aetna, and the employee contribution will be $400 cheaper. 

Under Aetna however, district employees will not receive dental and vision care, which was offered through the state plan—though Shugars said the savings from the decrease in medical premiums would offset that.

According to Board Vice President Kathy Goldenberg, the district was assured by Aetna, in writing, that its coverage would be "the same, or better than" the state plan.

But members of the Moorestown Education Association (MEA) questioned how accurate Aetna's claim is, and expressed frustration with the perceived lack of answers provided by the district.

"The reality is it is not good for some people ... Some members of the MEA will not experience the equal to or better than guarantee," one staff member said, adding that some members had already calculated losses of $30 or more in their bi-weekly paychecks.

Shugars said the benefit costs with Aetna are locked in from April 2013 to June 2014, with a rate increase for the second year capped at 16 percent, which is almost exactly what the state plan is projected to increase for the 2013-14 year. 

She further added that the state plan has decreased once in the last 22 years.