Ann Arbor teachers sound alarm over new health care rate hikes
ANN ARBOR, Mich. (CBS DETROIT) — Teachers in Ann Arbor Public Schools are saying new health care premium increases would make it difficult for them to continue teaching in the district.
This followed the Board of Education's March announcement that it was suddenly facing a $25 million "budget shortfall."
Fred Klein, president of the Ann Arbor Education Association, said although the increase came from insurance companies, the district decides how to divide costs.
"Teachers and principals are paying exorbitantly more than other employee groups," said Klein. "We have our superintendent who pays $1,000 out of pocket for the HMO that a teacher pays $6,867 out of pocket for. So, the balance is just so off there."
Klein said the rate hikes, which will take effect in January, could have a deep impact on some teachers.
"When you think about it, a new teacher who starts at $45,000 – in January, they're going to be paying $10,000 out of pocket for the HMO, they're going to pay just over $9,000 for the PPO, that's 20-25% of their take-home pay," he said. "That's just unsustainable."
Tamala Bell is the vice president of the teacher's union and a fourth-grade teacher.
"It just feels like one more thing," said Bell. "We dealt with the budget crisis back last spring; we dealt with teachers being laid off. We dealt with teachers that were over the summer that were involuntarily placed in positions that they didn't want in order to fill those vacant positions. And now we're dealing with the health care. It just feels like deaths by 1,000 cuts right now."
In a statement to CBS News Detroit, the district said, "We are currently in the collective bargaining process so we do not yet know what the costs will be for the final health care options."
But Klein said for some educators, it's too little, too late.
"It's just made teaching in Ann Arbor too costly for many teachers," he said. "And they will leave the district."
