Orlando Harmon
Teachers are public employees who generally receive insurance benefits, including medical, dental, and vision coverage. While access to health insurance has remained stable since 2018, with about 90% of public school employees having access to medical coverage, the cost of health insurance has been increasing. Since 2018, the cost of health insurance in the US has increased by 45%, while the average teacher's salary has only increased by 10% in the same time frame. This has resulted in slowly declining percentages of educators being protected by health safety nets.
| Characteristics | Values |
|---|---|
| Health Insurance Coverage | Medical, prescription, dental, vision |
| Access to Health Insurance | 90% of public school employees have access to medical and prescription coverage, 55% to dental insurance, and 34% to vision insurance |
| Health Insurance Affordability | The cost of health insurance has increased by 45% since 2018, while public-school employee health benefit contributions have increased by 14% and public-teacher salaries by 10% |
| Teacher Health Insurance Benefits | Teachers are more likely to receive health care benefits than employees in other fields, with 99% of public school teachers receiving benefits compared to 66% of private-sector employees |
| Medical Premium Costs | Teachers chip in an average of $1,175 toward annual premiums, while private-sector employees pay $1,384 |
| Single Coverage Subsidy | Teachers receive a subsidy of about $6,168 per year, or $961 more than private-sector workers |
| Family Plans | Teachers contribute $257 more than non-teachers for family plans |
| Comprehensive Plans | Plans can be customized to include inpatient and outpatient coverage, extended benefits such as vision and dental, and coverage for dependents |
| Flexible Plans | Some providers offer flexible plans that can be added, amended, or removed to meet the needs of teachers and their families |
| Retirement Plans | Many states do not have sufficient plans to cover the health costs of retired teachers |
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What You'll Learn
Teachers' health insurance costs vs salary increases
The cost of health insurance for teachers has been rising steadily over the years, and this has become a pressing issue for educators. While health insurance costs have been rising, teacher salaries have not kept pace, and this has resulted in teachers and school districts facing higher costs for coverage.
Since 2018, the average monthly premium that teachers pay for health insurance has increased at a faster rate than their salaries. The overall cost of living in the United States has risen by 17%, but the cost of health insurance has increased by 45% in the same period. This means that even though teacher salaries have increased, they are not keeping up with the rising cost of insurance and living expenses. For example, the average premium that public school employees pay for their health insurance has gone from $139 per month in 2018 to $162 per month in 2023. If these employees want family coverage, their monthly premium would be even higher, increasing from $592 to $711 per month in the same time frame.
Some school districts are making efforts to maintain affordable health insurance for their employees. For instance, Brevard Public Schools (FL) and Fairfax County Public Schools (VA) have increased the share that they cover of their employees' health insurance premiums. They have also provided their teachers with salary increases that exceed the rise in insurance costs. Notably, the Alpine School District (UT) stands out for continuing to cover all of its teachers' health insurance premiums, including family coverage, while also increasing teacher salaries by 35% since 2018.
However, not all districts are able to provide such comprehensive coverage. Some large school districts are decreasing the portion of a teacher's premium they cover. This has resulted in teachers paying more out of pocket for their health insurance, which can be a significant financial burden, especially when salary increases are not keeping up with the rising costs. This issue has been a driving force behind teacher protests over the past year, as insurance costs take up an increasingly large share of district funds, leaving less room for raises.
While teachers are more likely to receive health care benefits than employees in other fields, the rising cost of insurance is impacting their access to affordable coverage. This trend is not unique to teachers, as the cost of healthcare has risen across the board. However, with teacher salaries not increasing at the same rate, it presents a challenge for educators to balance their finances and maintain their health and well-being.
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Health insurance benefits for retired teachers
Similarly, in New York, the NYSTRS offers comprehensive and affordable medical, dental, and vision benefits to its retirees through the New York State Health Insurance Program (NYSHIP). This allows retirees to access quality HMO and PPO options. NYSTRS also provides 100% coverage of dental care costs for individuals and 50% for families.
In Connecticut, surviving spouses of retired teachers who die before becoming eligible for Medicare continue to receive the TRB coverage subsidy if they are not eligible for Medicare themselves. If the spouse is eligible for Medicare and the retired teacher dies, they can also continue on the TRB coverage.
While teachers are much more likely to receive health care benefits than employees in other fields, the cost of health insurance has been increasing at a faster rate than teachers' salaries. Since 2018, the overall cost of living in the US has increased by 17%, but health insurance costs have increased by 45%. Despite this, teachers are still more likely to receive retiree health benefits than their peers in the private sector.
To maintain affordable health insurance for their employees, some school districts have increased the share they cover of their employees' health insurance premiums. For example, Brevard Public Schools in Florida and Fairfax County Public Schools in Virginia have increased their contributions by a few percentage points since 2020. These districts have also provided salary increases that exceed the rise in health insurance costs.
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The rise in health insurance premiums
Teachers are more likely to receive health care benefits than employees in other fields. For instance, 99% of public school teachers have access to medical care benefits, compared to two-thirds of private-sector employees. Teachers are also more likely to receive other benefits, such as dental care, vision care, and prescription drug coverage.
However, the cost of health insurance has been rising. Since 2018, the overall cost of living in the United States has increased by 17%, but the cost of health insurance has increased by 45%. The average cost of public-school employee health benefit contributions increased by 14% between 2018 and 2022, while public-teacher salaries increased by only 10% in the same time frame. This means that health insurance premiums and the general cost of living are increasing faster than educators’ pay raises. The average monthly premium that teachers pay for health insurance has increased at a faster pace than the rate of their average salary increase since 2018.
Rising health insurance premiums have been linked to a decline in insurance coverage. Some employers may choose to drop coverage altogether in response to rising premiums, particularly for low-wage hourly workers. Additionally, rising health costs may force employees who want to retain coverage to surrender both income and benefits. Every 10% increase in health insurance costs reduces the chances of being employed by 1.6% and leads to a 1% reduction in hours worked. This is because employers may convert full-time jobs to part-time positions, which often do not include health benefits. For those who continue to have health insurance, the increased price of premiums often comes out of their salary.
There are several possible reasons for the rise in health insurance premiums. Firstly, technological progress has been widely cited as a factor driving up premiums. New technologies incorporated into medical care can increase the overall cost of healthcare, which is then passed on to policyholders in the form of higher premiums. Secondly, rising health insurance premiums can lead to a separation between low-risk and high-risk individuals in the insurance market, with low-risk individuals opting out of insurance, causing adverse selection and potentially leading to a market unraveling as costs rise. Thirdly, government mandates regarding coverage may also play a role. Employers may respond by requiring employees to pay for a portion of the increase or shifting more staffing to part-time positions, which are often exempt from such mandates.
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The impact of location on health insurance costs
The cost of health insurance for teachers varies depending on location, with a range of factors influencing the price. Firstly, the overall cost of living in a particular area can impact insurance costs. Since 2018, while the overall cost of living in the United States has increased by 17%, the cost of health insurance has surged by 45%. This disparity has made it challenging for teachers to keep up with the rising insurance premiums.
Location also influences the availability of certain insurance plans. For instance, in North Carolina, health insurance premiums, deductibles, and out-of-pocket maximums have remained stable. North Carolina offers state-level health insurance, allowing the state to negotiate a more favourable plan due to its larger employee population compared to individual districts. In contrast, other states may not have sufficient plans to cover the health costs of retired teachers, leaving them vulnerable to high medical expenses.
The type of school and its location can also determine the insurance benefits provided to teachers. Private schools, for example, may offer different coverage than public schools. Additionally, international schools often provide health insurance as an attractive benefit for foreign educators, recognising their unique needs, especially if they return to their home countries during breaks. The size of the school or educational institution can also play a role, as larger institutions may have more negotiating power with insurance providers, potentially resulting in more competitive rates for their employees.
Furthermore, location can influence the flexibility and customisation options available in health insurance plans. Certain insurance providers specialise in serving schools and teachers, offering comprehensive plans that can be tailored to meet the specific needs of educators and their families. These plans may include inpatient and outpatient coverage, extended benefits for vision and dental care, and coverage for dependents. However, these additional benefits often come at an extra cost, impacting the overall affordability of the plan.
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Teachers' health insurance vs private-sector workers' insurance
Teachers' health insurance is becoming an industry standard in many areas. While previously, only foreign educators working at international schools had health benefits, now many educational institutes are offering health insurance to attract, value, and reward their top talent.
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. This means that teachers are much more likely to receive health care benefits than employees in other fields. Two-thirds of private-sector employees have access to medical care benefits through their employer, compared to 99% of public school teachers. Teachers are also more likely to receive dental care, vision care, and prescription drug coverage, as well as retiree health benefits, than their peers in the private sector.
However, since 2018, the cost of health insurance in the US has increased by 45%, and while the government can negotiate better rates than the private sector, the cost of insurance is still increasing faster than educators' pay raises. The average monthly premium that teachers pay for health insurance has increased at a faster pace than the rate of their average salary increase. Teachers' health care costs are slightly higher than those of private-sector workers, and while teachers bear a slightly lower share of their costs, they still contribute a significant amount annually towards their premiums. For single coverage, teachers receive a medical care subsidy from their employers, but for family plans, teachers contribute more than non-teachers.
Despite these challenges, some states and districts are making efforts to maintain affordable health insurance for teachers. For example, Brevard Public Schools (FL) and Fairfax County Public Schools (VA) have increased the share that they, as employers, cover of their employees' health insurance premiums, and provided salary increases that exceeded the increase in health insurance costs.
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Frequently asked questions
The cost of medical insurance for teachers varies depending on the state, district, and level of coverage. On average, teachers contribute about $1,175 toward their annual premiums, but this can differ based on factors such as family coverage, vision and dental care, and prescription drug coverage.
The cost of medical insurance for teachers is influenced by the portion of premiums paid by the school district or state, the availability of group plans, and the overall cost of living. Additionally, the demand for highly-skilled educators can impact the benefits offered by schools.
Teachers are more likely to receive healthcare benefits than employees in other fields. They are also more likely to have access to dental, vision, and prescription drug coverage. Teacher health plans tend to be slightly more expensive, but teachers typically bear a lower share of the costs compared to private-sector workers.
Yes, there are alternative options for teachers who cannot afford their school district's insurance. Private insurance firms like American HealthPro offer affordable insurance plans specifically tailored to teachers' needs, including low monthly premiums and additional coverage options such as vision and dental care.
