Lubbock ISD Grapples with Escalating Health Insurance Costs: Tough Choices Ahead for Educators

In a move that has sent shockwaves through the Lubbock Independent School District (LISD), the Board of Trustees has voted to increase employee premiums for the district's self-funded health plans, effective January 2024. This decision, while necessary to address the district's budgetary constraints, has sparked concerns among faculty and staff who are already feeling the financial strain.

Lubbock Educators Brace for Increased Health Insurance Costs

Stretched Thin Budgets and Rising Premiums

The Lubbock ISD Board of Trustees has been faced with a challenging decision – raise employee health insurance premiums or make cuts elsewhere in the district's budget. With the state legislature failing to adequately fund public education, LISD officials have found themselves in a difficult position, forced to make tough choices that will directly impact the livelihoods of their dedicated educators.The initial proposal presented to the board would have more than doubled the current cost of health insurance premiums for some employees. However, the board opted to split the increases over two years, in an effort to ease the burden on their staff. This decision, though intended to provide some relief, has still left many teachers and support staff struggling to make ends meet.

Catastrophic Claims and Budgetary Constraints

The district's executive director of risk management, Lisa Thompson, has cited a significant increase in "catastrophic claims" – high-cost insurance claims for severe illnesses or medical emergencies – as a primary driver behind the need for premium hikes. In the last year alone, LISD has seen over million in unexpected catastrophic claims, with the current figure for the 2023-2024 fiscal year standing at .1 million.With these escalating costs and a projected .6 million deficit in the 2024-2025 budget, the district has found itself in a precarious financial position. Board Vice President Ryan Curry acknowledged the difficult situation, stating, "We are out of money. There is no money to be gotten. We have minimized everything that we possibly can."

Educators Plead for Relief

The public comment period during the board meeting saw a chorus of voices from teachers and former educators, pleading with the trustees to find a way to mitigate the impact of the premium increases. Brenda Olden, a teacher, expressed her concern, stating, "As an educator, I live paycheck to paycheck. This insurance premium increase is going to cost my family 5 per month."Lauren Smith, the president of the Lubbock Educators Association, revealed that more than 75% of her organization's members who responded to a survey said they would forgo health coverage if the increases were implemented. This stark statistic underscores the severe financial hardship these changes will impose on LISD's dedicated workforce.

Retirement Considerations and Comparisons

Trustee Lala Chavez shared that some staff members have expressed plans to retire rather than face the increased health care costs. Chavez noted, "Because of the catastrophic claims that we've had, they feel like they're penalized because of that. I've heard plenty of them, several (from) Monterey (and) Lubbock High. They're ready to retire; they're able to retire. They chose to stay, but they're better off, they said, if they did retire."However, the district's administration has argued that despite the premium increases, LISD's health insurance plans remain among the most affordable compared to neighboring districts and the Teacher Retirement System's coverage. Executive Director Thompson provided a comparison, stating that for an employee with children, the base HMO plan would cost 0 per month, or 0 with the wellness credit, while other districts and the TRS-ActiveCare plan would cost significantly more.

Seeking a Sustainable Solution

The Lubbock ISD Board of Trustees, faced with limited options, has endeavored to find a balance between the district's budgetary constraints and the needs of its employees. The decision to spread the premium increases over two years was a compromise, aimed at easing the financial burden on educators.Trustee Nancy Sharp, however, placed the blame squarely on the Texas Legislature, which has not increased core public school funding since 2019. Sharp emphasized, "We already are in a deficit because the state has failed to fund us fully. I think funding our primary mission of teaching and learning is where we have to focus and do the very best we can."As LISD navigates this challenging situation, it remains to be seen whether the state legislature will take action to provide the necessary resources to support the district's educators and maintain the quality of education for Lubbock's students. In the meantime, the Lubbock ISD community must grapple with the reality of increased health insurance costs, searching for a sustainable solution that protects the well-being of its most valuable asset – its dedicated teachers and staff.