Lyons Township High School has added a high-deductible medical insurance option for employees to help curb health care costs in the long run, the director of business services said.
The school board Monday unanimously approved the alternative, which will be offered to employees in January. Workers also may choose instead to keep one of the two current plans.
The new plan features a lower monthly premium of $54.14 for singles, compared to $105.28 for a preferred provider option or $133.48 for the Blue Choice Select network of providers.
The new Consumer Directed Health Plan has a higher deductible of $1,500 compared to $450 or $250 for a single person in the other two plans. The out-of-pocket maximum costs also are higher at $6,000, compared to $2,000 or $1,150.
To help offset employees’ costs, they can enroll in a health savings account to set aside pre-taxed dollars, which will be invested and can be used for approved medical expenses without a deadline to use the funds. The high school will contribute $500 to a single person’s account or $1,000 for a family.
Brian Stachacz, business services director, estimates the new plan could save the high school $34,764 in claims. That amount would be offset by the school’s contributions of $23,500 to health savings accounts, resulting in a net savings of $11,264.
The employee’s savings per person is estimated at $375.47, Stachacz said.
Estimated savings to both the school and employees are based on at least 30 of the 459 employees signing up for the new plan, he said. If more employees participate savings likely will be greater, he said.
Pursuing the new plan was suggested by faculty members and school officials during contract negotiations in the spring, he said.
“Our goal is to arrest the trend of rising health care costs, more than realizing immediate savings,” Stachacz said. ” Businesses have been using these types of plans for quite a while now.”
In 2013-14, health care costs rose by an estimated 5.8 percent from the previous year, followed by a 9.8 percent increase in 2014-15 over the prior year, Stachacz said. [email protected]
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