In anticipation of the Health Care Reform going into effect, Education News reports that public school districts are already cutting hours to less than 30 hours a week for teachers’ aides, cafeteria workers, substitute teachers, bus drivers, and other personnel. These changes raise a concern for student performance. The decision to limit full-time employees not only affects the people who are losing hours, but also the students who must adjust to varying teaching and authoritarian styles because of the limited hours allotted for positions.
Schools trying to stay ahead of the new health care laws began cutting hours as early as this past summer. Instead of hiring full-time paraprofessionals, they have altered positions to accommodate for two part-time paraprofessionals—one in the morning and one in the afternoon. In a recent article published on investors.com, it’s stated that 101 school districts have cut hours for support staff or outsourced their job functions.
For schools that are faced with the decision to employ a long-term, full-time substitute teacher to cover an extended leave longer than 90 days (maternity leave, FMLA, etc.), Obamacare introduces a new twist. For schools with more than 50 full-time equivalent employees, in order to avoid the reform’s policy to cover temporary workers working more than 30 hours per week (or three days), schools will need to either hire two part-time teachers to share classroom time or pay the penalty fees (which are postponed until 2015). Parents involved in preliminary meetings regarding district changes concerning full-time and part-time employees and budgeting are already starting to voice concern over the issues of splitting classroom time between substitute teachers, teacher assistants, and paraprofessionals can cause—it interrupts the continuity in learning.
Funding additional health care costs or absorbing the penalties will clearly impact school budgeting. But, how can you prepare for something that has yet to establish clear guidelines or rules? Deadlines continue to be adjusted, enrollment sites are a work in progress, and insurance companies are pulling out of some states, cancelling current policies, and avoiding new clients.
For the Business Manager trying to budget for tomorrow, Washington’s indecision isn’t making it easy. However, it is sparking conversations among school administrators. Your school’s decision-makers should be talking about possible solutions for budget increases, how to replace teachers who need to take an extended leave, and how each possible solution might impact your students.
*Protecting your faculty and staff is as important as protecting your students. The foundation of health care is changing in America, and yes, companies and schools alike are facing laws mandating policy alterations—all of which will increase premiums. It has never been more important than it is now to work with a broker and an organization that understands the unique climate of private-independent schools. ISM offers insurance solutions—protection options—to schools of all sizes. We've been working with schools for nearly four decades, consulting, leading, and partnering with them to assure a stable future for generations. We're not just an insurance provider—we’re your 360° Risk Partners.
Additional ISM articles of interest
Private School News Vol. 11 No. 5 Health Care Reform and the Effect on Health Flexible Spending Accounts and Health Reimbursement Arrangements
ISM Monthly Update for Human Resources Vol. 11 No. 9 Health Care Reform, Exchanges, and School Culture
ISM Monthly Update for Business Officers Vol. 12 No. 2 Preparing for 2014 Affordable Care Act Mandates
Private School News Vol. 12 No. 5 Renewing Your Health Insurance Policies Early
ISM Monthly Update for Risk Managers Vol. 3 No. 8 Understanding the Affordable Care Act (ACA)
ISM Monthly Update for Risk Managers Vol. 4 No. 1 Astonishing Health Care Statistics
Additional ISM articles of interest for Gold Consortium members
I&P Vol. 35 No. 7 Health Care Reform: What Schools Need to Know Now
I&P Vol. 37 No. 12 Key Advice on Shaping Your Employee Health Benefits Plans
