Q: Can our district reduce our contribution for employee health insurance premiums?
A: Yes, districts can reduce monthly contributions for employee health insurance premiums. A court decision in 2002 confirmed a district’s right to reduce health insurance benefits, even after the penalty-free resignation date, where health benefits were neither a contractual term nor listed on the salary schedule. (Ector County TSTA v. Alanis, 2002 WL 31386061 [Tex. App.-Austin 202, pet. denied]).
However, districts cannot reduce contributions below $225 per month. That amount includes $75 from the state and the required minimum effort of $150 per month from the local district (Texas Ins. Code section 1581.052[a]). This amount applies to every employee who participates in a group health coverage plan provided by or through a district, including self-insured plans.
Review the FAQ on reducing district contributions to health insurance on HR Services’ Cutting Personnel Costs Web page.
