Purdy school board approves new insurance benefit

Wednesday, April 26, 2017

Offers to fully pay HSA premium instead of raising base pay

The Purdy Board of Education has opted to offer an increased health insurance benefit to its employees for the coming school year, rather than raise base pay rates.

At the April board meeting, board secretary Anna Marie Erwin reported that health insurance rates, under the Missouri Educators' Trust (MET) consortium, would rise 6.5 percent for the coming year. The district has been paying $395.35 per month on premiums for its employees.

For the coming year, then, Superintendent Steven Chancellor proposed paying 100 percent of the insurance premium, $470.69 a month or approximately $75 a month more, for all staff, certified and classified, for the Health Savings Account (HSA) plan offered by MET. A small number of employees presently buy HSA plans, he noted, but with this option, he expected the numbers to significantly increase.

If all the district's employees switched to an HSA plan, the increased benefit would cost the district a maximum of $71,000 a year more. Chancellor said the HSA plan offers flexibility for both younger people who don't have many medical expenses and older people who rely on their health insurance.

Board members approved the insurance package. They still plan to approve a step increase in pay for another year's service going into the new school year without increasing the base.

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