This blog is from one of COBIS’ Supporting Associates.

Written by Pierre de Mirman, Deputy Global CEO at Pacific Prime

Health insurance is equally expensive for school districts as it is for typical customers and families. Additionally, many districts are dealing with skyrocketing staff health insurance costs due to recent developments in health, medicine, and the labour market.

Join me in exploring why schools and teachers should prepare for higher health insurance premiums in this article.

Overview: The Higher Health Insurance Costs Among Districts

According to responses from approximately three in four district leaders in an EdWeek Research Centre survey conducted between January 31st and March 4th, the cost of health insurance has surged since the 2022-2023 school year.

Meanwhile, just under a quarter of districts reported no change in staff healthcare costs, with 1% noting a slight decrease.

According to the survey, which included responses from 239 district leaders, over a third of them saw healthcare costs rise by more than 10%, while seven percent of the districts saw healthcare costs rise by a substantial 25%.

When it comes to school districts, around 80-90% of their budget goes towards staff compensation and benefits. This underscores the significance of health insurance, emphasising the need for teachers and staff to stay insured for potential injuries or illnesses.

Why Schools and Teachers Should Be Prepared for Higher Health Insurance Premiums

Some known reasons for the surge in health insurance premiums, which schools and teachers should be prepared for, include the increase in prescription costs due to new medications emerging and the lasting impact of the pandemic.

Below we look at each of the key reasons why schools and teachers should be prepared to pay higher health insurance premiums.

The Lasting Impact of the Pandemic

In the Forest district in Sydney, for instance, staff members have resumed medical appointments and procedures they had put off during the height of the COVID-19 pandemic.

According to Forest Area’s school district superintendent Amanda Hetrick, a few years of relatively limited cost increases have paved the way for even steeper cost increases. Additionally, according to Hetrick, the district saw a surge in respiratory viruses during the school year.

In addition to common illnesses like flu and COVID-19, there were also cases of RSV (Respiratory Syncytial Virus). This means that as staff members fall ill, the district's medical insurance plan must cover higher medical costs.

While it may have been years since the height of the pandemic, schools and teachers should never overlook the potential for associated respiratory illnesses and colds, to which treatment and medication can be substantial expenses.

Emerging Drugs: Spike in Prescription Costs

Doctors can prescribe drugs such as Ozempic, which help diabetic patients manage their blood sugar levels. However, due to the short supply and high demand, specialised medications such as these are expensive.

While some insurers who were reluctant to cover such expensive medications have started covering them at a higher cost in order to cater to the medical needs of all patients, other insurers have shied away from doing so due to the higher costs.

According to David Blanchard–superintendent of the school district of Schoharie in New York, the costs of people using these specialised medications in the district are “quite drastic”.

Whether it’s medication for diabetic management or other cases where teachers would need those specialised medications, schools and teachers should be prepared to pay higher premiums for the specialised medication to be covered, so the patient won’t need to make out-of-pocket payments.

Secure Health Insurance with Us

From rising medication costs to the lasting impact of the COVID-19 pandemic leaving teachers vulnerable to conditions ranging from minor colds to severe respiratory illnesses, higher health insurance premiums are a crucial consideration.

While premiums may seem overwhelming at first due to additional medication coverage or other benefits, health insurance is important for schools and teachers to ensure that teachers stay healthy, and that their finances are safe from unexpected out-of-pocket medical expenses they can’t afford.

My team of insurance experts at Pacific Prime UK is renowned for their expertise in tailoring group insurance plans for schools of all sizes. We’re dedicated to providing comprehensive insurance solutions for our clients. Get in touch with my team or send me an email via pierre@pacificprime.com for more information on school insurance.