Haris Ashley
Teachers' salaries are often lower than similarly skilled professions, but they typically receive benefits such as health insurance. In the US, about 90% of public school employees have access to medical and prescription coverage, 55% to dental insurance, and 34% to vision insurance. However, the cost of health insurance has been increasing faster than educators' pay raises, and many teachers struggle to afford the premiums. While some districts provide affordable health insurance and salary increases that exceed the rise in insurance costs, others do not. Additionally, retired teachers often face insufficient coverage, and substitute teachers rarely receive health insurance. Overall, while teachers generally have access to health insurance, the quality and affordability of their coverage vary, and it may not adequately meet their needs.
| Characteristics | Values |
|---|---|
| Health Insurance Availability | About 90% of public school employees have access to medical and prescription coverage, 55% to dental insurance, and 34% to vision insurance |
| Cost of Health Insurance | The average premium that public school employees pay for their own health insurance has gone from $139/month in 2018 to $162/month in 2023 |
| Cost of Living vs Salary Increase | The overall cost of living in the United States has increased by 17% since 2018, while public teacher salaries have increased by 10% in the same time frame |
| Affordability | Some school districts are making efforts to maintain affordable health insurance for their employees, with some increasing salary and the share they cover of health insurance premiums |
| Supplemental Insurance | Teachers may have access to supplemental insurance, including accident, critical illness, and hospital insurance, as well as health and wellness programs |
| Retirement Insurance | Public health insurance for retired teachers is often not sufficient, and many states lack adequate plans. Some school districts may continue to provide healthcare benefits and life insurance after a teacher retires |
| Social Security | If a state opts out of providing teachers with social security benefits, they must provide a pension |
| Generosity of Benefits | Opinions vary on whether teacher benefits are overly generous or not. Some argue that benefits make up for lower pay, while others state that they do not |
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What You'll Learn
Teacher health insurance costs
Teachers' health insurance costs vary depending on several factors, including the type of insurance plan, the region, and whether the teacher is employed in the public or private sector.
Public vs Private Sector
There are some differences in health insurance costs and benefits between teachers in the public and private sectors. On average, teachers in the public sector receive slightly better benefits than those in the private sector. Teacher plans in the public sector tend to have slightly higher medical care premiums, and teachers in this sector bear a slightly lower share of their costs than private-sector workers. A higher share of teachers in the public sector (24%) get their full medical premiums paid for compared to private-sector workers (15%). For single coverage, teachers in the public sector receive a medical care subsidy from their employers worth about $6,168 per year, which is $961 more than what private-sector workers receive. Teachers in the public sector contribute an average of $1,175 toward annual premiums, while private-sector employees pay $1,384.
Types of Insurance Plans
There are several types of health insurance plans available to teachers, including Health Maintenance Organization (HMO) plans, Preferred Provider Organization (PPO) plans, and Exclusive Provider Organization (EPO) plans. HMO plans offer health care from specific doctors and hospitals under contract with the plan, and enrollees pay co-payments for some services. PPO plans are similar to traditional "fee-for-service" plans, but enrollees must use doctors within the PPO provider network or pay higher co-insurance. EPO plans offer the same covered services as HMO plans, but enrollees must use the plan's network of preferred providers.
Regional Variations
Health care costs vary across different regions, and insurance premiums are adjusted accordingly. For example, in California, regional pricing ensures that CalPERS premiums are appropriate and competitive for the specific region where the teacher lives.
Recent Trends
Since 2018, the cost of health insurance in the United States has increased significantly, and while public school employees have not borne the full burden of this increase, health insurance premiums and the general cost of living have risen faster than educators' pay raises. The average cost of public school employee health benefit contributions increased by 14% between 2018 and 2022, while public teacher salaries increased by 10% during the same period. As a result, even the most affordable family health care plans have become less accessible for teachers.
Efforts to Maintain Affordability
Some school districts have made efforts to maintain affordable health insurance for their employees. For example, Brevard Public Schools (FL) and Fairfax County Public Schools (VA) have increased their share of employees' health insurance premiums and provided salary increases that exceeded the rise in health insurance costs. Alpine School District (UT) stands out for fully covering its teachers' health insurance premiums, including family coverage, while also increasing salaries by 35% since 2018.
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Health insurance coverage
In the United States, the cost of health insurance has increased by 45% since 2018, far outpacing the 17% increase in the overall cost of living. While public school employees have not borne the full burden of this increase, with the government negotiating better rates, the average cost of their health benefit contributions has still risen by 14% between 2018 and 2022. This increase in premiums, coupled with the rising cost of living, has outstripped the 10% increase in public teacher salaries during the same period. As a result, teachers may struggle to afford comprehensive health insurance plans, especially those covering their families.
Some school districts are making efforts to maintain affordable health insurance for their employees. For example, certain districts have increased the share they cover of their employees' health insurance premiums and provided salary increases that exceed the rise in insurance costs. Additionally, teachers' unions are actively working to secure better benefits for educators.
The specific health insurance plans available to teachers can vary based on their location and employment status (public vs. private school). Teachers may have access to specialized health plans through their district or state programs, and some districts offer a choice of plans with varying deductible costs, provider networks, and copay and coinsurance structures. Supplemental insurance options, such as accident, critical illness, and hospital insurance, can also provide additional coverage for unexpected life events.
It is worth noting that retired teachers often face challenges with insufficient public health insurance coverage for their medical needs. This has led to the emergence of private insurance firms offering retirement insurance programs tailored to educators' needs.
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Health insurance for retired teachers
Health insurance for teachers varies depending on the school district and state. In the United States, public sector pension funds are often underfunded, and the funds allocated for health insurance for retired teachers are insufficient. Many states do not have adequate plans to cover the health costs of retired teachers.
Some school districts are making efforts to maintain affordable health insurance for their employees. For example, Brevard Public Schools (FL) and Fairfax County Public Schools (VA) have increased the share that they cover of their employees' health insurance premiums. The Alpine School District (UT) covers the entirety of its teachers' health insurance premiums, including family coverage.
Retired teachers in Illinois who receive retirement benefits from the Illinois Teacher Retirement System (TRS) can participate in a health insurance plan called the Teachers Retirement Insurance Program (TRHIP). To be eligible, teachers must have received retirement benefits from the TRS and have at least 8 years of creditable service.
In Maine, retired teachers who receive retirement benefits and were eligible for membership in the State Employee and Teacher Retirement System before July 1, 2011, are eligible for group accident and sickness insurance. They must have a minimum of 5 years of creditable service and meet the eligibility requirements imposed by the group plan. Retired teachers in Maine are not required to maintain dues-paying membership in any organization to participate in a group health insurance plan.
In Ontario, the Retired Teachers Insurance Plan (RTIP) offers flexible health, dental, and travel insurance to retired educators, administrative staff, and support staff. RTIP provides three drug coverage maximums and Single, Couple, and Family plan options. Paramedical services are also included, with 80% reimbursement of eligible charges up to a combined maximum of $1,350 per person per calendar year.
Overall, while there are some public and state-specific options for retired teachers, the availability and quality of health insurance for retired teachers vary widely, and many are left without sufficient coverage.
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Supplemental insurance
Teachers have access to various health insurance plans, which differ based on deductible costs, providers in the network, and costs associated with copays and coinsurance for preventive and urgent care. While about 90% of public school employees have access to medical and prescription coverage, many struggle with the rising costs of insurance and stagnant salaries.
Teachers can benefit from supplemental insurance in several ways. First, it offers peace of mind and financial assistance during unexpected health events. Second, it helps cover costs that their primary health plan may not include, such as dental and vision care, which are sometimes considered supplemental coverages. Third, supplemental insurance provides flexibility in choosing plans that cater to their specific health needs and family history.
When considering supplemental insurance, teachers should evaluate their health history, family needs, and the details of the policy. Supplemental insurance can vary in cost and coverage, so understanding the terms and assessing their health and lifestyle needs is essential. Additionally, teachers can explore private insurance firms that offer affordable group plans with low monthly premiums and secondary coverage options.
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Teacher pension plans
Pensions are an important component of total compensation for most employees, especially public school teachers, who tend to have relatively low salaries. Teacher Retirement Systems (TRS) are state-level organisations that administer retirement savings plans for workers in public schools and colleges. They also provide educators with help and advice regarding their retirement planning.
The benefits offered by TRSs include traditional defined-benefit pensions, along with defined-contribution plans, including 403(b) plans, which resemble 401(k) plans. The specific benefits of TRS plans vary widely by state and even by school district. For example, the average pension for newly retired teachers in the previous 10 years ranged from around $20,000 a year in states such as Arizona, Florida, and South Carolina, to around $50,000 in California, Connecticut, Illinois, and New York. In only one jurisdiction—Ohio—did the average pension exceed $60,000.
A traditional pension plan provides retired workers with a steady income stream that is guaranteed for life, unlike 401(k) plans, which offer no guaranteed benefits. Defined-benefit pension plans provide a predictable, guaranteed benefit for educators when they retire and help attract and retain great educators to the profession. However, only 1 out of 5 teachers receive their full pensions.
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Frequently asked questions
Yes, teachers get health insurance. In the US, about 90% of public school employees have access to medical and prescription coverage, 55% to dental insurance, and 34% to vision insurance.
Teachers typically have to make a small contribution to their health insurance, with their employer paying the majority of the premium. However, the portion of health insurance premiums that public school teachers contribute has been rising, and some argue that this, along with the rising cost of living, is affecting teachers' abilities to provide for their families.
This depends on the state and district. Some states and districts provide retired teachers with health insurance, but others do not.
