Key Takeaways
- Instead of a third round of negotiations that would have likely taken months to complete, the terms and conditions of the current arrangement will now be in effect through December 31, 2027.
- The previous two rounds of negotiations took months and ended up being settled by arbitrators. Now, instead of bargaining over premiums, co-pays, and deductibles, the commission will tackle healthcare reform on several fronts.
- This is a victory, and a real testament to your representatives on the commission, led by Maple Run EA’s Mike Campbell.
Instead of bargaining, statewide commission pledges to tackle the high cost of healthcare with an eye on systemic reform.
MONTPELIER – The Commission for Public School Employee Health Benefits unanimously agreed to a two-year extension of the current school employees’ healthcare plan while pledging to work together toward systemic changes that would lower costs and make healthcare more affordable.
The extension comes as the commission was gearing up for bargaining over the agreement that was set to expire on December 31, 2025. Instead of a third round of negotiations that would have likely taken months to complete, the terms and conditions of the current arrangement will now be in effect through December 31, 2027. Under the terms of the current agreement, premium co-shares, co-pays, and deductibles will not change for the majority of covered employees, except for some support staff who will see a 1 percent increase in their premiums if they aren’t already contributing 20 percent.
“Given the tumultuous state of school budgets, economic uncertainty, and the absolute need to tackle systemic issues in healthcare, we believe this extension brings much-needed stability for both school boards and public school employees alike,” said Mike Campbell, a social studies teacher in St. Albans who is the co-chairman of the commission. “Big factors are driving unsustainable increases in healthcare costs and the commission looks forward to working toward developing meaningful reforms.”
Mark Koenig, a member of the Addison Northwest School District board who is the other co-chairman of the commission, agreed. “It quickly became clear that all of us on the commission are committed to building a better healthcare plan for educators that is affordable to Vermont taxpayers,” Koenig said. “At this moment, how we share medical payments is less important than getting a firm handle on overall costs. Let’s be clear; we are not kicking the can down the road. We’re picking it up and putting it in its proper place.”
Formal bargaining for the third statewide healthcare pact was set to begin next month. The previous two rounds of negotiations took months and ended up being settled by arbitrators. Now, instead of bargaining over premiums, co-pays, and deductibles, the commission will tackle healthcare reform on several fronts.
Earlier this month, the commission agreed to discuss changes in current health insurance plans with the Vermont Education Health Initiative, the entity that offers health benefits to school districts and school employees. By doing so, the commission hopes to explore whether such changes in those plans might better serve public school employees and taxpayers. A first meeting with VEHI is scheduled for the end of March. The agenda includes a review of current plans and a discussion of possible revisions, replacements, or changes to current benefit offerings. Everything will be on the table, including wellness and preventive care.
The commission will also hold fact-finding forums with other players in Vermont’s healthcare system. For example, the Green Mountain Care Board – the state’s healthcare regulator – can make vital contributions in the area of hospital and prescription cost containment and the recent merger of Vermont Blue Cross Blue Shield (BCBS) with Michigan BCSC may offer the possibility of new resources and ideas.
The commission will also explore larger reforms such as reference-based pricing to lower hospital costs and the formation of a prescription drug affordability board. Reference-based pricing could offer significant savings in benefit plans covering public school employees. A prescription drug reform might provide the GMCB the authority to set maximum prices for certain high-cost prescription drugs.
“While our focus is on healthcare benefits for educators, our work may apply to other sectors of Vermont,” said Koenig. “In addition to our educators and school districts, we will keep all interested parties up to date on our findings, including the State Legislature and Governor Scott. If we can pull this off, everybody wins — teachers, school boards, taxpayers, and the residents of Vermont.”
Campbell agreed. “We know the cost of healthcare isn’t just a schools’ thing, it’s an all-Vermont thing,” he said. “We are excited to see where our efforts will go as the commission works together to tackle the ever-rising cost of healthcare that affects all Vermonters.”
The commission is comprised of equal numbers of educators and school board members. The extended agreement covers most school employees, including those belonging to Vermont-NEA and AFSCME. Prior to 2017, school employee healthcare was bargained at the local level.
