Teachers Dropping Group Coverage for Dependents to Save Thousands with Private Healthcare
As the cost of medical insurance in Florida rises, teachers statewide are leaving their expensive group insurance for dependents behind.
Press Release (PressBurner) May 18, 2009 - Florida teachers are fuming over the prohibitive cost of insuring their dependent spouses and children. Educators from the Panhandle to the Keys are buying coverage for their families privately. Michael Hrad, a statewide health insurance specialist, works directly with the state's 179,000 school district employees. Florida’s school system is the 4th largest school system in the nation, with 67 public school districts are comprised of more than 4,000 public schools (including public charter schools) that enroll almost 3 million students annually.
Hrad explains that the cost for full time teachers or school district employees to insure themselves is typically free. The district usually provides a premium allotment that negates the cost to the employee. The problem lies in the prohibitive cost to insure dependent spouses and children. Hrad just wrapped up assisting Martin County school district teachers and other employees. In Martin, A full time teacher has to pay $486 per month to add a dependent. The cost is the same whether the teacher adds one child or a spouse plus children. Should the teacher have a very large family, say a spouse plus 6 children, the $486 premium doesn't sound so bad. As most scenarios involve the need for coverage for a spouse only or perhaps a spouse plus 1-2 children, the $486 premium is roughly 50% more than the typical cost to insure with private insurance. Privately, the cost to insure a child with similar coverage would run $80-$130 per month as premium for a spouse plus 1-3 children would total $220-$280 per month.
The key component in assisting his clients, Hrad states, is their "overall health." "If the spouse and or kids are healthy, we have an absolute green light. It's just simple economics. Why would they overpay in this economy?" Should a dependent have diabetes, heart or serious respiratory issues, or cancer -the client is advised to stay with the group. The group is a pool used to subsidize cost in numbers. The question Hrad asks of his qualified clients most often is: "You are healthy and can save thousands per year, do you want to subsidize the ill health of your colleagues by paying through the nose for healthcare?"
"We occasionally struggle with complacency" says Hrad. Some have had the overpriced district coverage so long that they feel some strange obligation to stay put. Most, however understand why their premiums are so high with the school after we consult with them. And what do these now enlightened cost conscious individuals say?
