Teachers and other Pontiac school district employees are being notified that their insurance carrier that is owed almost $12 million in past-due premium payments will terminate coverage as of July 31.
Amy McKeever, president of the Pontiac Education Association, is encouraging employees now covered, including secretaries and administrators, to be at the 5:30 p.m. board meeting Tuesday June 25, to let their concerns be known to the board in public comment session.
With this critical deadline fast approaching, McKeever is calling on the school district to pay what it owes to its health insurance provider so that the 350 school employees and their families covered now can continue receiving health care.
The near- $12 million owned includes the $7.8 million owed the insurance carrier for MEA members, Michigan Education Special Services Association (MESSA), for the entire year of 2012 plus almost $4 million since January of this year.
Gary Fralick, spokesman for the insurance carrier, said, ?It is a sad day for MESSA.
?This is the first time in our 50-year history that we?ve encountered a school district that has completely ignored its contractual obligation and so ignored the health and well being of its employees.
?They?ve been delinquent for more than a year and district officials have repeatedly promised to pay bills on time and time and time again have failed to do so,? Fralick said Tuesday afternoon.
Fralick said MESSA is sending letters this week notifying employees that as of midnight July 31 they will no longer have MESSA coverage, in an effort to give them as much advance notice as possible.
?The tragedy here is there are members with health problems who need health coverage and the district?s ignoring their well-being. The employees are completely innocent,? Fralick said.
Oakland County Circuit Court Judge Shalina Kumar ordered a tax levy to cover the $7.8 million in a settlement agreement. Under a recently ruling by Circuit Judge Martha Anderson, that will be paid by property owners within district boundaries in eight communities. Continued...
The other $3.7 million is owed since January of this year. Until September 2012, the district was obligated for the entire premium. Beginning September 2012, employees began paying about 25 percent of the premiums, which McKeever said has been taken out of their checks bi-weekly since January, but not paid to MESSA.
"MESSA has shown a great deal of patience with the Pontiac School Board," McKeever said. "However, MESSA is a business. How many businesses would continue to provide goods and services if they haven't been paid?
MESSA officials said they have received four checks (from Pontiac schools) starting May 9; one was for a COBRA payment and the other were four regular payments averaging $58,000 of the $500,000 owed for each month.
Among the 350 employees losing their coverage are teachers, secretaries, para-profressionals, administrators, and central office staff, including interim Superintendent Kelley Williams and Tim Gardner, district attorney and human resource director,? McKeever said.
Coverage for other Pontiac school employees such as food service and police authority members, who chose a different carrier, such as food service and police authority members, was canceled earlier, McKeever said.?
?They found out when they couldn?t get their medication,? she said.
The average teacher with MESSA Choice 2 family rate pays $216 bi-weekly for their portion of the premium, which is $20,622 a year. The teacher pays $5,600 and the district $15,000.
Single employees pay $2,759 of the $8,259 total, and two person coverage is $18,560, with the employee paying $7,560 and the employer paying $11,000.
Teachers have $200 to $400 deductible.?
?You are taking it from our checks; where is it going?, McKeever said she has asked school officials.? Continued...
?McKeever has called a general membership meeting for Thursday over the issue.
?We have put up with a lot. We have sacrificed over 15 percent of economics in our contract. We have bought our own classroom supplies, sought assistance from MEA for supplies.
?We are taking on 40-plus kids in the classroom. We have put up with no paper, no copy machines and sought out service of Kinko and other services because we don?t have? books in some of our class rooms,? McKeever said.
?I think enough is enough. This is devastating to our members.?
?As of July what are we going to do?,? McKeever said.?
The board meeting tonight will be held at the Odell Nails Administration Building at 47200 Woodward Ave. in Pontiac, in the school/city complex at Auburn Road.
Source: http://www.theoaklandpress.com/articles/2013/06/25/news/doc51c9f9d8b2d8c661339221.txt
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