RUSD proposes switching disability provider to Madison National Life; short‑term rates lower than Hartford’s proposal

Racine Unified School District human resources staff proposed switching the district’s short‑term and long‑term disability provider from The Hartford to Madison National Life at the March 3 work session, citing a steep proposed short‑term rate increase from Hartford and a more favorable multi‑year guarantee from Madison National.

HR reported that Hartford proposed a roughly 20.5 percent increase for the short‑term disability program during renewal discussions. In response the district solicited proposals and, after bundling short‑ and long‑term coverage to obtain better pricing, received a proposal from Madison National Life with a smaller short‑term rate increase (staff described it as about 8 percent relative to current costs) and a three‑year rate guarantee for short‑term coverage. Staff said Madison National had previously been the district’s carrier and that the district has received positive feedback from employees about their customer service.

Officials explained enrollment design changes: the short‑term disability plan will shift to an opt‑out enrollment model so eligible employees will be enrolled by default unless they decline. HR said that roughly 900 employees currently participate in the short‑term disability plan while more than 2,000 employees are eligible; administrators argued opt‑out enrollment would increase participation and reduce the risk employees will be without coverage when they need it.

Board members asked about how short‑ and long‑term disability interact with sick leave and other benefits. HR staff explained short‑term can run concurrently with sick time and that long‑term coverage kicks in after employees exhaust other paid leave; staff said some employee groups have different employer contribution levels and that the district has historically paid varying employer shares by employee class (for example, clerical group pays 50% of long‑term in current structure). Board members asked HR to quantify what it would cost the district to increase employer contribution levels for lower‑paid groups; staff said they could calculate that figure for future consideration.

Administration recommended the carrier change and said moving to Madison National would produce overall savings compared with Hartford’s renewal offer; the proposal will be returned for formal approval in a future business meeting. No formal action was taken at the March 3 work session.