October 1, 2014
Milwaukee Public Schools (MPS) expects to save $6 million a year as the school board opts to switch health plans for their retirees.
Approved by the board in mid-September, MPS retirees eligible for post-employment health care benefits will make a “seamless” transition to the Group Medicare Advantage PPO Plan.
Retirees will also benefit from reduced premium costs, with up to $8 million in total savings for the current pool of former MPS employees, according to Dr. Karen Jackson, MPS’ Chief Human Capital Officer.
Current retirees will be able to keep “virtually the same level of health care benefits” with the new plan.
Board members also approved a high-deductible health plan option for existing MPS employees. Workers will now have the option of lower premiums in exchange for higher deductibles as well as opening Health Savings Accounts to plan for future health care needs.
MPS’ innovative health care options are yet another example of Act 10’s collective bargaining reforms, giving the school district flexibility to explore other health plans for its employees.
Read the original MPS press release here.