Connect with us

Mississippi Today

State insurance premium hike blunts teacher pay raise

Published

on

State insurance premium hike blunts teacher pay raise

Athena Lindsey, a teacher and policy fellow with Teach Plus Mississippi, repeatedly heard the same concern when surveying teachers in the lead-up to the historic 2022 teacher pay raise: “Every time you see a pay increase, the insurance premiums always go up, so you never really get to feel the actual pay raise.”

Insurance premiums for public employees rose 6% on Jan. 1 of this year, the fifth consecutive year with an increase. The report of the Teach Plus Mississippi survey showed lower insurance premiums as the third highest policy priority for teachers, behind two related to pay increases.

“A lot of them in the survey said that they had second jobs just for that reason, because the insurance plans were ridiculous,” said Lindsey.

The average teacher salary in Mississippi is $53,000, which drops to $40,990 after taxes and retirement contributions, according to calculations by Mississippi First. Premiums for individuals on the plan make up 1% of their take home pay, but 25% for employees with their family on the state insurance. After premiums, take home pay for employees with their family on the plan drops to $30,910.

Five teachers interviewed by Mississippi Today expressed growing frustration with the rising costs and falling benefit quality. State officials say these changes were made to counter rising health insurance costs that are causing financial deficits, with the reserves of the state plan dropping $119 million over the past nine years. Legislators say they are looking to address this problem next session.

The state health plan served nearly 194,000 state employees and their dependents in 2021, the most recent year for which there is data. Most people opt for the “Select” plan with more benefits, but the number of people on that plan has been slowly falling since 2016.

Premium costs have remained largely unchanged for individuals on the single-employee plan, but people whose families also receive insurance through the state plan have seen more significant increases.

Per state law, the state contributes 100% of the premium cost for basic coverage for employees. Employees pay between $20-46 monthly for individual coverage if they opt for the plan with more benefits. The state does not contribute to premium costs for children and spouses, making family coverage significantly more expensive. Prices range between $124 and $840 a month, and vary based on the number of dependents and quality of coverage.

Mississippi is one of two states in the Southeast that doesn’t pay any extra towards premiums for family coverage, according to figures compiled by the Mississippi Department of Finance and Administration that were presented at a 2021 hearing. Rep. Kent McCarty, R-Hattiesburg, introduced a bill this session for the state to pay 50% of dependent premiums, but it died in committee.

“A lot of jobs are offering coverage for dependents already, and a lot of times teachers leave to take those jobs, so we thought this could be a way to make the teaching profession more competitive with others and keep teachers in the classroom,” he said.

A recent report published by Mississippi First studied why teachers are leaving the classroom. In it’s survey, 42% said they could not afford deductibles, premiums, or other health care costs not covered by insurance, and financial insecurity was closely linked with risk of leaving the classroom.

“Any improvement in this area, whether that is reducing cost for teachers or improving the quality of the plan, is all going to necessitate more resources from the state,” said Toren Ballard, K-12 policy director for Mississippi First.

This gap between individual and family premiums is common in the teaching profession. According to a 2020 report published by the Southern Regional Education Board, teachers pay an average of $200 less in monthly premiums for single plans than private sector employees, but an average of $257 more in premiums for family plans.

Megan Boren, project manager with the board, said her study of teacher compensation found most states in the Southeast have work to do because of the sizable cost gap between single and family coverage. Boren said she would not single out Mississippi as struggling in this area, but pointed to Alabama, Virginia, and Florida as exemplar states that have successfully kept costs down for employees.

“A lot of this is just tied to how health insurance is set up, and there’s not a lot of wiggle room or great strategies that an employer, government or otherwise, can take on these pieces,” Boren said. “Our hands are quite tied because of the way health insurance is structured in this country and some of the general policies around that.”

A bill moving through the Legislature this session would study the state health insurance system and make recommendations for legislation to be proposed in 2024. The task force, proposed by Senate Education Committee Chairman Dennis DeBar, R-Leaksville, would focus on the financial solvency of the plan, rate increases, benefits and comparisons to other Southeastern states.

“I just want to see a deep dive into why expenses keep going up and up,” DeBar said. “I don’t want insurance (costs) to be a deterrent to getting insurance and doing yearly check-ups, because on the back end, medical conditions may be worse off if people don’t treat them.”

Some teachers share his concern that current rates are discouraging employees from seeking preventive care.

“I get that if you have a catastrophic year, it’s there for you, but this should be so much more in a state that is so unhealthy,” said Jason Reid, a teacher in the DeSoto County School District.

Reid, a two-time cancer patient, has hit his out-of-pocket maximum with both diagnoses and experienced the safety net that the plan can provide, but said that because of rising costs, most of his colleagues feel like they never see a benefit. Reid added the insurance plan usually isn’t stopping people from becoming teachers, but that it is driving them away.

Advocates say a lack of investment from the state is also driving away other state employees. Brenda Scott, the president of the Mississippi Alliance of State Employees, said teachers got a “decent” raise last year, but that for other state workers, raises are “very rare.” 

Scott said she would like to see raises for state employees to make it easier for them to afford premium increases when they come along, or for the state to expand Medicaid to give employees more coverage options.

READ MORE: Q&A: What is Medicaid expansion, really?

“They’re not expanding Medicaid, which is meant to cover the working poor,” she said. “There’s a lot of state employees who would fit into that category.”

Adding to frustration with the insurance premium increase are other changes to the plan.

Multiple teachers expressed frustration with the declining quality of prescription drug coverage since the switch from Prime Therapeutics to CVS Caremark, a change that state officials said was made to save money on rising healthcare costs.

Renee Webber-Butler, a teacher in the Perry County School District, was informed after the switch that the ADHD medicine her 16-year-old son takes would no longer be covered. He had tried multiple medications and had negative side effects with some before finding success with Vyvanse, the medicine that was no longer being covered.

“I explained to him what was going on, and he said, ‘Mom, I’m not going to have to take that medicine where I’m mean and angry am I?’” Webber-Butler said. “How do you look at your kid and say, ‘Well, son, I’m sorry but … on educator salaries, we can’t (pay out of pocket.)’”

She said they found another medicine for him that will be covered, but called it “ridiculous” that her son has been on three different medicines in six months.

Cindy Bradshaw, the administrator of the state health insurance plan, said the switch to CVS Caremark, as well as the deductible and premium increases in recent years, are adjustments to balance the finances of the health insurance plan. The plan has been spending more on care than premiums could cover every year since 2016, which has significantly decreased the surplus reserves of the plan. The surplus was $247 million in 2012 and had dwindled to $64 million by the end of 2021, according to the plan’s actuarial report for 2021.

During the 2022 legislative session, the state health insurance plan was given $60 million in American Rescue Plan funds, and a bill has passed out of committee to give the plan another $30 million in federal pandemic relief funds this session.

When discussing the incremental actions of the state board that manages the health insurance plan, Bradshaw said, “We’re trying to softly land a plane instead of having a big crash.”


This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

Mississippi Stories Videos

Mississippi Stories: Michael May of Lazy Acres

Published

on

mississippitoday.org – rlake – 2025-01-21 14:51:00

In this episode of Mississippi Stories, Mississippi Today Editor-at-Large Marshall Ramsey takes a trip to Lazy Acres. In 1980, Lazy Acres Christmas tree farm was founded in Chunky, Mississippi by Raburn and Shirley May. Twenty-one years later, Michael and Cathy May purchased Lazy Acres. Today, the farm has grown into a multi seasonal business offering a Bunny Patch at Easter, Pumpkin Patch in the fall, Christmas trees and an spectacular Christmas light show.  It’s also a masterclass in family business entrepreneurship and agricultural tourism.

For more videos, subscribe to Mississippi Today’s YouTube channel.


This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

Continue Reading

Mississippi Today

On this day in 1921

Published

on

mississippitoday.org – Jerry Mitchell – 2025-01-21 07:00:00

Jan. 21, 1921

George Washington Carver Credit: Wikipedia

George Washington Carver became one of the first Black experts to testify before Congress. 

His unlikely road to Washington began after his birth in Missouri, just before the Civil War ended. When he was a week old, he and his mother and his sister were kidnapped by night raiders. The slaveholder hired a man to track them down, but the only one the man could locate was George, and the slaveholder exchanged a race horse for George’s safe return. George and his brother were raised by the slaveholder and his wife. 

The couple taught them to read and write. George wound up attending a school for Black children 10 miles away and later tried to attend Highland University in Kansas, only to get turned away because of the color of his skin. Then he attended Simpson College in Indianola, Iowa, before becoming the first Black student at what is now Iowa State University, where he received a Master’s of Science degree and became the first Black faculty member. 

Booker T. Washington then invited Carver to head the Tuskegee Institute’s Agriculture Department, where he found new uses for peanuts, sweet potatoes, soybeans and other crops. 

In the past, segregation would have barred Carver’s testimony before Congress, but white peanut farmers, desperate to convince lawmakers about the need for a tariff on peanuts because of cheap Chinese imports, believed Carver could captivate them — and captivate he did, detailing how the nut could be transformed into candy, milk, livestock feed, even ink. 

“I have just begun with the peanut,” he told lawmakers. 

Impressed, they passed the Fordney-McCumber Tariff of 1922. 

In addition to this work, Carver promoted racial harmony. From 1923 to 1933, he traveled to white Southern colleges for the Commission on Interracial Cooperation. Time magazine referred to him as a “Black Leonardo,” and he died in 1943. 

That same year, the George Washington Carver Monument complex, the first national park honoring a Black American, was founded in Joplin, Missouri.

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

Continue Reading

Mississippi Today

Legislative recap: 2025 tax cut battle has been joined

Published

on

mississippitoday.org – Geoff Pender – 2025-01-20 12:00:00

After relatively brief debate and questioning given its magnitude, the state House passed the first meaningful legislation of the new session: House Bill 1, a measure that would eliminate the state income tax, trim taxes on non-prepared food and raise sales and gasoline taxes.

It would mark a sea change in state tax structure, a shift from income to consumption taxation.

“We are at a place where we can finally tell the hard-working people of Mississippi we can eliminate the tax on work,” House Ways and Means Chairman Trey Lamar, HB1’s author, told his colleagues.

The measure passed the House 88-24. It gained some Democratic support in the supermajority Republican House, with nine Democrats voting in favor, 24 against and 12 voting present.

The proposal garnered some bipartisan support because it includes at least a couple of items Democratic lawmakers have championed in the past: A gasoline tax to help fix crumbling roadways, and a reduction in the “grocery” tax, or the sales tax levied on unprepared food, of which Mississippi has the highest overall rate in the nation.

It still met with some Democratic opposition in part because it is a sea change toward more “regressive” taxation. Proponents say this is just, people should pay more for state services they use, such as roadways, and for things they buy as opposed to taxing income. Opponents say this places a proportionately higher tax burden on people of modest means.

“I would say the people hurt the most with this would be working people who have to put gas in their car to go to work or those who have to purchase materials to do a job,” House Democratic Leader Robert Johnson said.

Beyond that concern, opponents or skeptics worry that the foundation of the proposed tax overhaul would be built on shifting sands — a state economy that has been so rosy primarily from the federal government dumping billions of dollars in pandemic spending into Mississippi. With the federal spigot being cut off, some worry, the state economy could slump, and the massive tax cuts in this new plan could provide a state budget crisis, of which Mississippi has much experience, and underfunding of crucial services such as schools, roads, health care and law enforcement.

The largest hurdle Republican House leaders face in seeing their tax plan through to law is not in garnering bipartisan support. It’s internecine disagreement with the Senate Republican leadership, which still appears to harbor abovementioned concerns about overhauling tax structure in uncertain economic times and betting on growth to cover massive tax cuts.

Senate leaders have said they want to enact more tax cuts, but their plan has not yet been released. Lt. Gov. Delbert Hosemann has provided some details of what he wants to see, but it would appear he wants a more cautious approach on cuts. He has not publicly opined on the tax increases in the House plan.


“Have you ever worn a belt and suspenders, lady? It’s a belt and suspenders approach.” — Rep. Trey Lamar, R-Senatobia, to Rep. Omeria Scott, D-Laurel, during floor debate on Lamar’s bill to eliminate the state income tax and raise other taxes.

“No. I have not worn a belt and suspenders. I don’t know anyone who has worn a belt and suspenders,” Scott replied.

House will renew push to legalize mobile sports betting

House Gaming Committee Chairman Casey Eure, R-Saucier, told Mississippi Today he plans on taking another crack at legalizing mobile sports betting in the state. In 2024, the House and Senate passed versions of legislation to permit online sports betting, but never agreed on a final proposal. Some lawmakers raised concerns that gambling platforms would have no incentive to partner with smaller casinos, and most of the money would instead flow to the Mississippi Gulf Coast’s already bustling casinos. Proponents say legalization would undercut the influence of illicit offshore sports betting platforms.

“I’ve been working on this bill for many years and I’m just trying to satisfy any concerns that the Senate may have so we can pass this and start collecting the tax dollars that the state deserves and not allowing everyone to place bets with these offshore accounts,” Eure said. “I feel like the state is losing between $40-$80 million a year in tax revenue.”

Sports wagering has been permitted in the state for years, but online betting has remained illegal amid fears the move could harm the bottom line of the state’s brick-and-mortar casinos. Mobile sports betting is legal in 30 states and Washington, D.C.,  according to the American Gaming Association. — Michael Goldberg


Hosemann makes Senate committee chair changes

Republican Lt. Gov. Delbert Hosemann last week named new chairmen of committees, after former state Sen. Jenifer Branning was sworn into office as a new justice on the Mississippi Supreme Court. 

Sen. Chuck Younger, a Republican from Columbus, previously led the Senate Agriculture Committee and will replace Branning as chairman of the Transportation Committee. Sen. Neil Whaley, a Republican from Potts Camp, previously led the Senate Wildlife, Fisheries and Parks Committee, but will now lead the Senate Agriculture Committee. 

Here are the other changes to Senate committees: 

Sen. Ben Suber, a Republican from Bruce, will be the new chairman of the Senate Wildlife, Fisheries and Parks Committee 

Sen. Bart Williams, a Republican from Starkville, is the new chairman of the Senate Public Property Committee

Sen. Scott DeLano, a Republican from Gulfport, will lead the Senate Technology Committee 

Sen. Robin Robinson, a Republican from Laurel, will chair the Senate Labor Committee 

Sen. Angela Turner Ford, a Democrat from West Point, will lead the Senate Drug Policy Committee.  — Taylor Vance


What’s in a name? Democratic Rep. Scott hopes GOP majority will pass ‘Donald J. Trump Act’ bills

Perhaps tired of seeing many measures she authors ignored or shot down in flames by the Republican supermajority in the Mississippi Legislature, Democratic Rep. Omeria Scott of Laurel is trying a new strategy: naming bills after Republican President-elect Trump.

For this session, Scott has authored: House Bill 61, the “Donald J. Trump Voting Rights Restoration Act;” House Bill 62, the “Donald J. Trump Ban-The-Box Act … to prohibit public employers from using criminal history as a bar to employment;” and House Bill 249, the “Donald J. Trump Early Voting Act.” — Geoff Pender


More bills filed to criminalize abortion

Since the 2022 Dobbs Supreme Court decision overturned the constitutional right to an abortion, Mississippi lawmakers have proposed bills to criminalize workarounds to the state’s strict abortion ban – including criminalizing the abortion pill and out-of-state abortions. The 2025 legislative session is no exception. 

Rep. William Tracy Arnold, R-Booneville, filed House Bill 616 that would make it a felony to manufacture or make accessible medication abortion. Anyone convicted of the crime would be subject to a fine between $1,000 and $5,000, as well as imprisonment between two and five years. Last year, about 250 Mississippians each month requested medication abortion from Aid Access, the only online telemedicine service supplying medication abortion via mail in the U.S. 

Helping a minor receive an abortion would also be criminalized under House Bill 148 filed by Rep. Mark Tullos, R-Raleigh. That would include transporting a minor out of state to undergo an abortion, as well as helping a minor procure a medication abortion – both of which would be punishable by not less than 20 years in prison or a fine of not less than $50,000. — Sophia Paffenroth


$1.1 billion

The estimated net annual cost of the House plan to eliminate the state income tax and raise sales taxes, once fully phased in. Proponents say economic growth would allow the state budget, currently about $7 billion a year, to absorb the cut. Eliminating the income tax would cost the state $2.2 billion in revenue, but the House plan would raise about $1.1 billion in other taxes in offset.

0

The amount of income tax Mississippians would pay after a 10-year phased in elimination of the state income tax. With previous cuts being phased in, state income taxes next year will already be reduced to 4%, among the lowest rates in the nation.

8.5 %

The new Mississippi sales tax, up from current 7%, under the House tax plan assuming most local governments would not opt out of adding a new 1.5% local sales tax.

13 cents more a gallon

The cost of the House’s proposed new 5% gasoline tax, based on last week’s average cost of gasoline in Mississippi of $2.62. The new 5% tax would be on top of the flat 18.4 cents a gallon current state excise on gasoline.

4%

The tax on unprepared food once a reduction of the current 7% would be phased in over a decade under the House plan. The state would over time reduce its sales tax on such groceries to 2.5%, but local governments would add a 1.5% sales tax to such items unless they opt out.

Lawmakers must pass new legislation to improve access to prenatal care

Lawmakers will file another bill this session to help low-income pregnant women get into the doctor earlier – after the federal government rejected the program set up under last year’s law, because of discrepancies between what was written into state law and federal regulations for presumptive Medicaid eligibility. Read the story.


Proposal: eliminate income tax, add 5% tax on gas, allow cities, counties to levy local sales tax

House leaders last week unveiled a sweeping tax cut proposal that would eventually abolish the state income tax, slash taxes on groceries, increase local sales taxes and shore up funds for state and local road work. Read the story.


A new Mississippi law aims to limit jailing people awaiting mental health treatment. Is it working?

Officials say a new law to decrease the number of people being jailed solely because they need mental health treatment has led to fewer people with serious mental illness detained in jails – but the data is contradictory and incomplete. Lawmakers plan legislation to make more counties report the data. Read the story.


How soon we forget: Mississippi House push for record tax cuts revives fear of repeat budget crises

Eight years ago, from a combination of dozens of tax cuts the Legislature approved and a slumping economy, the state saw a budget crisis that resulted in severely underfunded schools, government layoffs, a near halt to building new roads and highways and problems maintaining the ones we have, too few state troopers on the highways and cuts to most major state services. Read the story.


NAACP legislative redistricting proposal pits two pairs of senators against each other

The Mississippi chapter of the ACLU has submitted a proposal to the courts to redraw the state’s legislative districts that creates two new majority-Black Senate districts and pits two pairs of incumbent senators against one another. Read the story.


Legislation to send more public money to private schools appears stalled as lawmakers consider other changes

Some top lawmakers in Mississippi’s Republican-controlled Legislature are prepared to make it easier for students to transfer between public schools but remain skeptical of sending more public money to private schools. Read the story.


House passes $1.1 billion income tax elimination-gas and sales tax increase plan in bipartisan vote

A bill that phases out the state income tax, cuts the state grocery tax and raises sales taxes and gasoline taxes passed the House of Representatives with a bipartisan vote on Thursday. Read the story.


Tate Reeves and other top Mississippi Republicans owe thanks to President Joe Biden

The tremendous cash surpluses that some state Republicans cite when defending their plan to eliminate the state’s income tax would not exist if not for the billions of dollars in federal funds that have been pumped into the state during Biden’s presidential tenure. Read the story.


Podcast: Mississippi transportation director discusses proposed new gasoline tax

Mississippi Department of Transportation Director Brad White tells Mississippi Today’s Geoff Pender and Taylor Vance he’s staying “in his lane” and out of the politics of a House tax overhaul that would eliminate the income tax and raise sales and gasoline taxes, but that he’s pleased lawmakers are trying to address the long running need for a steady new stream of money to help cover highway maintenance needs. Listen to the podcast.

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

Continue Reading

Trending