The District is set to receive a nearly $1 million unexpected windfall as a result of Obamacare. The new legislation apparently requires that healthcare companies spend 85% of healthcare premiums on actual healthcare. One of the healthcare companies our District contracts with, American Specialty Health (that’s the chiropractic plan for non-Kaiser employees), missed that threshold.
According to a letter sent to enrolled SDEA members by American Specialty Health on July 23:
“In 2011, ASHP spent only 60.6% of a total of $3,209,385 in premium dollars on health care and activities to improve health care quality. Since it missed the 85 percent target by 24.4% of premium it receives, ASHP must rebate 24.4% of the total health insurance premiums paid by the employer and employees in your group health plan. We are required to send this rebate to your employer or group policyholder by August 1, 2012 or apply this rebate to the health insurance premium that is due on or after August 1, 2012.”
What does this mean for SDUSD? Well, 24.4% of $3,209,385 is $783,090. That is amount SDUSD either received today, August 1, or that is the amount that they WON’T have to pay towards our healthcare premiums after all this year. Either way, that means the District just had an improvement to its balance sheets to the tune of $783,090.
We call upon the District to immediately use this money to restore the 41 remaining Early Childhood Educators who got left out in the cold in the last round of negotiations (not to mention the 83 K-12 teachers we were all told would be recalled when we voted on the TA but weren’t after all). And we call upon SDEA to push to make that happen NOW.
For teachers to give up a 7.16% raise and take an additional 2.7% pay cut in the form of furlough days while the District pads its coffers is not okay.