October 8, 2024
Insurance

Friendswood ISD employees to receive $50 monthly increase in district health insurance contributions


Employees in Friendswood ISD will receive a $50 monthly increase in health insurance contributions from the district starting in the new fiscal year after the board of trustees approved the increase at its Aug. 12 meeting.

What’s happening?

With the $50 monthly increase, FISD officials will now contribute $220 to each employee’s health care plan. When combined with the state’s $75 contribution, it brings the total to $295. This is also now equivalent to 62.6% of the cost of the lowest premium of the state employee health plan for fiscal year 2024-25, according to district documents.

Currently, FISD contributes $170 and the state contributes $75 for every employee in the district, which totals to $245. This is equivalent to 52% of the cost of the lowest premium of the state employee health plan for FY 2024-25, according to district documents.

The monthly increase will apply to employees who are eligible to enroll in the Teacher Retirement System of Texas ActiveCare plan for the 2024-25 school year, according to district documents.

The total cost for the monthly increase will be $240,000 and puts the district at a $1.1 million shortfall for FY 2024-25, FISD Chief Financial Officer Amber Petree said at the meeting.

How we got here

Trustees went through the following four options for monthly increases in health insurance contributions from the district at its July 22 workshop:

  • Option 1: No increase, which would have placed the district at risk of incurring a $4,160 penalty for every employee making under $20.72 an hour who applied for marketplace coverage and declared the district’s coverage was not affordable.
  • Option 2: Raise salaries so all eligible employees make above $20.72 an hour, which would change the level of employee contributions. Petree said this option was “very costly.”
  • Option 3: Go by the poverty rate and increase the monthly contribution for a specific employee group or all groups, which would put caps on the yearly insurance premium to keep it affordable but would increase the district’s monthly contribution amount to $366. This option would cost $340,500.
  • Option 4: Increase contribution for all employees
    • Option 4A: $35 monthly increase, $280 total contribution after increase
    • Option 4B: $50 monthly increase, $295 total contribution after increase
    • Option 4C: $65 monthly increase, $310 total contribution after increase

District officials ultimately recommended option 4B, which was the option approved, according to district documents.

What’s next

Now that health insurance contributions have been approved, district officials will discuss the budget at a public meeting at 7 p.m. on Aug. 26 at 402 Laurel Drive, Friendswood. Officials will also determine the tax rate that will either be adopted at the meeting or at a later date, according to district documents.



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