Survey shows educators feeling pinch from rising health care cost and legislative delays
By Chandra Madafferi, MEA President & CEO
School buildings throughout our Michigan communities are once again becoming hubs of activity, as students and educators begin another school year. However, with the buzz of activity and excitement also comes a sobering reality: Health care costs are skyrocketing for school employees in particular, and this hurts our ability to attract and retain talented educators.
A recent survey conducted by the Michigan Education Association of 1,700 educators working in PreK-12 schools and in higher education reveals that 80% of our members have incurred higher out-of-pocket healthcare costs since January, with the average educator reporting additional expenses of over $200 per month. Some have experienced increases of double that amount.
It’s true that health care costs are rising for everyone, due in part to the proliferation of expensive specialty drugs like GLP-1s, as well as increased health care utilization for an aging population and a series of hospital mergers, which have reduced competition and increased costs.
However, these cost increases are hitting school employees even harder than the average Michigander, due to a 2011 law that places an artificial limit on how much school employers can spend on their employees’ health care premiums. The “hard cap” law has resulted in educators having to pay an ever-increasing share of their health care costs, as the amount districts are allowed to spend hasn’t kept pace with inflation.
Even though some school districts have been able to give raises over the past few years, the impact of the hard cap law has more than offset any pay increases school employees may have seen.
House Bill 6058, passed by both chambers of the state Legislature last December, aims to fix this problem by immediately increasing how much school employers may spend on their employees’ premiums, with that amount subsequently pegged to the same rate as health care inflation. This will provide school districts struggling to hire quality educators an opportunity to offer more competitive benefits packages. It will also help keep dedicated educators on the job and doing what they love best: helping our kids learn.
Unfortunately, House Bill 6058 still hasn’t taken effect, as the House has delayed the legislation’s delivery to the governor’s desk for her consideration and signature. The fate of the bill now rests with the courts, with oral arguments in the Michigan Court of Appeals set for next Tuesday, Sept. 9.
As this situation drags on, growing financial strain is leaving many talented educators with no choice but to leave the profession they love, as they are once again caught in a political chess game.
Others have taken on second or third jobs just to make ends meet, leaving them unable to dedicate their full attention to their craft and their students. Instead of working on lesson plans, grading papers or attending trainings on the latest teaching strategies, many educators are spending their evenings delivering DoorDash or stocking shelves. According to our survey, 18% of our members have had to take on second jobs this year, while 11% are working more hours at their existing secondary jobs — extra jobs they shouldn’t need to have, because one job should be enough.
Michigan’s students thrive when their teachers and school support staff are healthy, supported and able to focus on educating our kids. But the rising cost of health care, combined with this outdated law that prevents school districts from covering a fair share of health care costs, makes it harder each year for educators to put food on the table.
State leaders must address this issue so we can attract and retain talented educators and ensure every child receives the high-quality education they deserve.
That’s why we are calling on the state House leadership to take swift action to alleviate this severe financial pressure on educators and immediately send House Bill 6058 to the governor.
We must all come together as a state, regardless of partisanship, to strengthen our hometown schools. That starts with ensuring every student — in every corner of our state — has great educators working in their schools, and every educator is treated as a professional and is compensated accordingly.
Labor Voices
Labor Voices columns are written on a rotating basis by United Auto Workers President Shawn Fain, Michigan Education Association President Chandra Madafferi, Michigan Regional Council of Carpenters and Millwrights Executive Secretary-Treasurer Tom Lutz and selected Service Employees International Union members.
