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Hudson School Board approves new single-tier health plan, raises deductibles
Summary
The Hudson School Board approved administration’s recommended move to a single-tier employee health plan that raises individual deductibles from $500 to $1,000 and emergency-room copays from $150 to $300, and adopts negotiated offsets including on-site services with Hudson Physicians; the board will begin open enrollment in May.
The Hudson School Board voted Tuesday to approve changes to the district’s employee health insurance that officials said balance benefit continuity with rising costs.
Nick (staff member) told the board the administration and consultant Alera Group recommended consolidating two plan tiers into a single-tier plan comparable to the district’s existing Open Access network. "The deductible's going to go from 500 to 1,000," he said, and the emergency-room copay will increase from $150 to $300. The district will continue to pay 85% of premiums, with employees covering 15%.
Assistant Director Molly (board member) and other trustees said the costs are real for employees but noted negotiated offsets. Bonnie (staff member) highlighted a direct contract with Hudson Physicians that will provide some no-cost services and in some cases waive deductibles or copays for on-site care. "There's zero charge for wellness visits," a board member said in praise of the Hudson Physicians arrangement.
Scott Ellington, a citizen who addressed the board during public comment, urged the board not to single out retirees. He said retirees "do not deserve to be singled out" with higher premiums and warned a 10% surcharge could price retirees out of coverage. Administration said consultants had recommended a larger increase (noted in discussion as 40%), and the board eased that recommendation to a 10% retiree surcharge for the coming year while retaining retiree HRA contributions. "They still get the same amount contributed to their HRA," a staff member said.
Administration told the board that, because the district could not sustain two separate tiers, equalizing to a single plan helps stabilize costs even though some employees will see premium increases and others decreases depending on prior tier choices. Board members said the district will provide employee presentations and tools ahead of open enrollment.
The motion to approve the health plan as presented carried by voice vote.
Next steps: administration will present employees with details and conduct open enrollment in May.
