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Board approves MOU changing employee health contributions, adds opt-out incentive
Summary
Monrovia Unified approved an MOU with the teachers’ union that adjusts employer contributions toward health plans, adds two lower-cost plan options and offers a $2,000 opt-out cash incentive for employees with alternate coverage; the board asked staff to report aggregate savings by December.
The Monrovia Unified Board of Education approved a memorandum of understanding with the Monrovia Teachers Association that adjusts health-benefit contribution rates, adds two lower-cost plan options and establishes an opt-out incentive for employees with other coverage.
District staff explained the new structure creates a fixed employer contribution amount across plans and ties employee contributions to the actual cost of the plan chosen; Kaiser remains the least expensive plan and carries no employee contribution under the new schedule. The agreement also creates two alternate plans (Anthem Select HMO and Anthem Platinum PPO) that administrators said mirror existing coverage at lower premiums.
A significant change is an opt-out option for employees who already have qualifying coverage: participating employees who opt out would receive $2,000 in cash and the district estimates it would save approximately $9,272 per year for each employee who declines coverage. Human-resources and benefits staff said they will report back to the board with aggregate district and employee savings at the December meeting.
The MOU was described as addressing equity across employee groups and staying within budgeted parameters for benefits. Open enrollment begins Aug. 18; insurance coverage under new elections would take effect Oct. 1. The board approved the MOU by roll call (5-0) and added a motion directing staff to return in December with a cost-savings report.
