District’s health costs could increase by 15%

A Lawrence school district committee is recommending the district accept a 15.6 percent increase in health insurance costs to keep the same benefits for employees next year.

The move would cost the district an extra $864,235 in what it contributes annually to cover a single employee’s core plan with Coventry Health Care. The district would be contributing $361.70 per month per employee.

Individual employees would also see a 15.6 percent increase in premiums for buy-up plans or to insure family members. The district has more than 1,400 employees.

Committee leaders made a presentation Wednesday during teacher contract talks. The benefits will still need to be negotiated between the school board and teachers.

Chief operations officer Frank Harwood, the school board’s lead negotiator, said the committee probably did the right thing because not increasing premiums would have reduced benefits. It also would have cost the district $2.7 million more to return to its 2008-2009 plan.

As part of their recent budget cut talks, board members aimed to cut $5 million, expecting a $1 million increase in health insurance costs. They cut $4.6 million but also floated the idea of dipping into reserves.

Teacher Lois Orth-Lopes, the Lawrence Education Association’s negotiations chairwoman, said she appreciated that the committee recognized employees “took a major hit” in fringe benefits last year.