Pontiac Schools health benefits ending over unpaid premiums Video: Heated school board meeting
Teachers and other Pontiac school district employees are being notified that their insurance carrier — owed almost $12 million in past-due premiums — will terminate coverage as of July 31.
Aimee McKeever, president of the Pontiac Education Association employee union, called on the school district to pay what it owes so 350 workers and their families can continue receiving health care.
The debt includes $7.8 million owed to MESSA (Michigan Education Special Services Association), the insurance carrier for MEA members, for the 2012 school year, plus $3.7 million since January.
Schools interim Superintendent Kelley Williams and school board President Caroll Turpin were not available for comment.
“It is a sad day for MESSA,” Gary Fralick, spokesman for the insurance carrier, said Tuesday afternoon. “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 MESSA is sending letters this week notifying employees that as of midnight July 31 they will no longer have MESSA coverage.
“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.
McKeever encouraged PEA members to appeal to the board to pay the debt.
Aimee McKeever, president of the Pontiac Education Association employee union, called on the school district to pay what it owes so 350 workers and their families can continue receiving health care.
The debt includes $7.8 million owed to MESSA (Michigan Education Special Services Association), the insurance carrier for MEA members, for the 2012 school year, plus $3.7 million since January.
Schools interim Superintendent Kelley Williams and school board President Caroll Turpin were not available for comment.
“It is a sad day for MESSA,” Gary Fralick, spokesman for the insurance carrier, said Tuesday afternoon. “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 MESSA is sending letters this week notifying employees that as of midnight July 31 they will no longer have MESSA coverage.
“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.
McKeever encouraged PEA members to appeal to the board to pay the debt.
MESSA sued the district for the 2012 money. Oakland County Circuit Court Judge Shalina Kumar ordered a tax levy to cover the $7.8 million. Under a recent ruling by Circuit Judge Martha Anderson, that will be paid by property owners within district boundaries in eight communities.
The district was obligated for the entire premium before September 2012, when employees began paying more than 25 percent of the premiums. McKeever said the money has been taken out of workers checks biweekly since January, but not paid to MESSA.
“You are taking it from our checks; where is it going?” McKeever said she has asked school officials.
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 due for each month.
Among the 350 employees losing their coverage are teachers, secretaries, paraprofessionals, administrators and central office staff, including Superintendent Williams and Tim Gardner, the district’s attorney and human resource director, McKeever said. Coverage for food service and police authority members, who chose a different carrier, was canceled earlier, she said.
“They found out when they couldn’t get their medication,” McKeever said.
Teachers with the MESSA Choice 2 family rate pay an average of $216 biweekly for their portion of the premium, which is $20,622 a year. The teacher pays $5,600 and the district pays $15,000. Teachers also have $200 to $400 deductibles.
McKeever 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,” McKeever said.
“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’s and other services because we don’t have books in some of our classrooms.
The district was obligated for the entire premium before September 2012, when employees began paying more than 25 percent of the premiums. McKeever said the money has been taken out of workers checks biweekly since January, but not paid to MESSA.
“You are taking it from our checks; where is it going?” McKeever said she has asked school officials.
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 due for each month.
Among the 350 employees losing their coverage are teachers, secretaries, paraprofessionals, administrators and central office staff, including Superintendent Williams and Tim Gardner, the district’s attorney and human resource director, McKeever said. Coverage for food service and police authority members, who chose a different carrier, was canceled earlier, she said.
“They found out when they couldn’t get their medication,” McKeever said.
Teachers with the MESSA Choice 2 family rate pay an average of $216 biweekly for their portion of the premium, which is $20,622 a year. The teacher pays $5,600 and the district pays $15,000. Teachers also have $200 to $400 deductibles.
McKeever 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,” McKeever said.
“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’s and other services because we don’t have books in some of our classrooms.
“I think enough is enough. This is devastating to our members. As of July, what are we going to do?”
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