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Wellness plan expected to cut costs in long run
By Ashley Rhodebeck
Daily News staff writer
For each of the past four years the School District of Beloit's funds have been strained by annual health insurance increases of 12 to 13 percent, but officials expect the recently agreed upon wellness plan will slash the growth.
“We would like to cut it in half if we could,” Executive Director of Operations Ron Nortier said.
The wellness plan was the focus on the 2007-09 and 2009-11 teachers contracts, which the Board of Education unanimously approved. The Beloit Education Association passed the settlement 387-41.
Under the contract, teachers must pay 10 percent of their health insurance premium. However, if they participate in the wellness program, the district will pay the premium. Teachers would complete surveys concerning healthy lifestyles. Blood tests and screenings would be done to check cholesterol and other health risks.
The contract with the health insurance provider states the plan will cost $70,000 to $75,000 a year, Nortier said.
Board members recognized the wellness component was a risky move, but district officials expect it to come with hundreds of thousands of dollars in savings.
According to projections from the Wellness Council of America, after three years the return on the plan should range between $3 and $6 for every invested dollar, Nortier said. For example, he said, if $100,000 goes toward the plan the district should see $500,000 to $600,000 less in expenditures.
“It should go a long way in reducing the increases everybody's been suffering through in the past 10 years,” Nortier said.
In the 1980s and 1990s, large health insurance cost increases would have meant 6 or 7 percent, Nortier said, noting at times the costs remained steady or declined.
Since 1999, most of the years' increases have reached the double digits. About five years ago, the rising costs contributed to the district cutting $1.5 million out of the teachers' salary schedule. Nortier said the district was fortunate during the past couple years because a growing enrollment helped spread out the increase.
In addition to the projected savings, district officials expect to see the non-tangible benefits of having healthier teachers.
School board member Kimberly Thompson pointed out fewer substitutes will probably be needed and teachers in the program may influence students to eat better foods and exercise, too.
“We're all concerned about the health of young people,” school board member John Acomb added. “If we're modeling this kind of behavior, I think this has got to help.”
Healthier teachers will most likely teach at their best, too, Nortier said. Of the educators already participating in a wellness program, Nortier said many have noted several benefits from exercising more, such as having more energy, sleeping better and having fewer headaches.
“If we can get that to everybody we really should see - hope to see - significant reduction in substitute costs,” Nortier said.
Implementing the wellness plan was also an effort to help teachers' salaries to increase, rather than using the money for health benefits. Each year, teachers must receive a 3.8 percent minimum increase in combined salary and benefits, but rising insurance costs have squeezed the amount devoted to salary.
“The teaching staff has been losing pace salarywise with inflation,” Nortier said. “This was an effort on the part of the board and the BEA to try to get back toward at least inflationary salary increases.”
The combined increase for the four contracted years is about 4.9 percent. As health costs decline, the district hopes to get it closer to 3.8 percent while giving employees cost of living increases, Nortier said.
Daily News staff writer
For each of the past four years the School District of Beloit's funds have been strained by annual health insurance increases of 12 to 13 percent, but officials expect the recently agreed upon wellness plan will slash the growth.
“We would like to cut it in half if we could,” Executive Director of Operations Ron Nortier said.
The wellness plan was the focus on the 2007-09 and 2009-11 teachers contracts, which the Board of Education unanimously approved. The Beloit Education Association passed the settlement 387-41.
Under the contract, teachers must pay 10 percent of their health insurance premium. However, if they participate in the wellness program, the district will pay the premium. Teachers would complete surveys concerning healthy lifestyles. Blood tests and screenings would be done to check cholesterol and other health risks.
The contract with the health insurance provider states the plan will cost $70,000 to $75,000 a year, Nortier said.
Board members recognized the wellness component was a risky move, but district officials expect it to come with hundreds of thousands of dollars in savings.
According to projections from the Wellness Council of America, after three years the return on the plan should range between $3 and $6 for every invested dollar, Nortier said. For example, he said, if $100,000 goes toward the plan the district should see $500,000 to $600,000 less in expenditures.
“It should go a long way in reducing the increases everybody's been suffering through in the past 10 years,” Nortier said.
In the 1980s and 1990s, large health insurance cost increases would have meant 6 or 7 percent, Nortier said, noting at times the costs remained steady or declined.
Since 1999, most of the years' increases have reached the double digits. About five years ago, the rising costs contributed to the district cutting $1.5 million out of the teachers' salary schedule. Nortier said the district was fortunate during the past couple years because a growing enrollment helped spread out the increase.
In addition to the projected savings, district officials expect to see the non-tangible benefits of having healthier teachers.
School board member Kimberly Thompson pointed out fewer substitutes will probably be needed and teachers in the program may influence students to eat better foods and exercise, too.
“We're all concerned about the health of young people,” school board member John Acomb added. “If we're modeling this kind of behavior, I think this has got to help.”
Healthier teachers will most likely teach at their best, too, Nortier said. Of the educators already participating in a wellness program, Nortier said many have noted several benefits from exercising more, such as having more energy, sleeping better and having fewer headaches.
“If we can get that to everybody we really should see - hope to see - significant reduction in substitute costs,” Nortier said.
Implementing the wellness plan was also an effort to help teachers' salaries to increase, rather than using the money for health benefits. Each year, teachers must receive a 3.8 percent minimum increase in combined salary and benefits, but rising insurance costs have squeezed the amount devoted to salary.
“The teaching staff has been losing pace salarywise with inflation,” Nortier said. “This was an effort on the part of the board and the BEA to try to get back toward at least inflationary salary increases.”
The combined increase for the four contracted years is about 4.9 percent. As health costs decline, the district hopes to get it closer to 3.8 percent while giving employees cost of living increases, Nortier said.
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