Friday, August 29, 2008

Costs for Teacher Insurance Up in Arkansas

Categories: Arkansas, Government employees

Imagine this: teachers actually get less of their insurance paid for by the taxpayer than other government employees.

Here's the situation in Arkansas:

"Statistics provided to the state show teachers cover about 56 percent of rate costs for their health insurance, while state employees pay in only about a third of the overall cost. But estimates show that bringing teachers into the same plans as state employees would cost the state an additional $229 million for the next two-year budget. In the 2013-2015 budget, estimates put the cost at $395 million."

Compensation comes in a combination of cash and benefits, including health insurance. In a normal business, an increase in money for insurance premiums offsets increased money for salaries. But in the case of public sector employees, it's probably more like "more for government employees, less for taxpayers."