Seattle Education Association

Senate Bill 6442 and its companion bill House Bill 2724 move to increase tax payer costs, expand bureaucracy, eliminate competition, and reduce benefits. These bills would mean a state takeover of all K-12 educators’ health benefit plans and would provide no cost savings. These bills also eliminate local decision-making about your health benefits.

·        It means that a group of individuals in Olympia will be deciding what every K-12 employee benefit plan will look like (Copays, provider selection, premium rates, and types of benefits). These will no longer be negotiated as part of your local contract and all of those benefits that you have bargained will go away.

·        Because there is no bargaining at the local level in regards to health insurance there will be no pooling or additional money paid by the district towards these benefits.

SB6442/HB2724 abandons a system that today costs less and provides more: Currently, the state pays $768 a month per fulltime equivalent K-12 employee vs. $850 per fulltime state employee. This is a difference of $82 per month, yet the K-12 employees get coverage that is as good as or better than what state employees receive. These new plans will add more than $21.5 million in NEW taxpayer costs over the next three years, then an additional $7.1 million in costs per year to keep it running.¹

Where will the extra money come from to make the new plan work?

·        The only way to cut the costs is to cut benefits (reduce what is covered) and increase cost shifting (higher premiums, copays, and deductibles) to the employees and districts. This bill does not change the current risk pool. There is no savings by changing the funding mechanisms and that is what these bills are about. This is not real reform!

Or call the Legislative Hotline at 1-800-562-6000