It’s that time of year! When KSB’s Husker predictions get horrible reviews, and you are preparing to negotiate for your 21-22 contracts with impending local, state, and national elections, having no clue what Congress or the Unicameral will do before next August (it’s just frightening at this point), in the middle of a global pandemic. Sounds fun. In a crazy time with so many variables, the wise advice to “control what you can” seems apropos. Since you can’t control the weather or whether Scott Frost goes for it on 4th and 1, let’s make sure you’re well prepared to negotiate.
Negotiations Timelines. Here’s your annual flu shot reminder about the negotiations timelines in Nebraska. Statute section 48-818.01 lays out most of the procedural requirements for school and ESU negotiations, including the relevant timelines:
September 1: Deadline for the union to request bargaining agent recognition
October 1: Deadline for the board to respond to the request
November 1: “[N]egotiations shall begin.” We’re not exactly sure what that means, though the safest answer is to assume 1 of the 4 mandatory negotiations meetings must occur by 11/1.
February 8 (2021): If you’re not settled, the parties must submit to mediation or factfinding, or agree in writing to continue bargaining.
EHA Rate and Network Changes, and Negotiations. Remember that negotiations in Nebraska are all about comparability. You’re comparing total compensation, not just salary, which includes benefits costs with the bulk coming from health insurance. Your total compensation number must fall within 98-102% of the total compensation of the midpoint of your array, so your choices and the choices of your array schools matter a lot. That’s why when Educators Health Alliance (EHA) announced their 2021-2022 rates and an upcoming change to their health insurance network offerings, your ears should have perked up.
The press release announces 2.96% overall increase in EHA plan premiums for next year. That’s good news. But keep in mind a raise across the board means every school and ESU in EHA will have a similar increase--it won’t mean you just pay that much less in salary because your benefit costs went up. That’s why perhaps the bigger news from a negotiations perspective is the addition of two alternative networks. EHA will continue to offer the statewide NEtwork BLUE option to all school districts and their employees. For next year (beginning September 1, 2021) EHA will make two alternate networks available to select school districts and their employees.
One new network is Premier Select BlueChoice. This network will be available in areas with zip codes starting with 680, 681, 683, 684, or 685. Some key network hospitals and healthcare providers include Methodist Hospital System, Nebraska Medicine, Bryan Health, Boys Town National Research Hospital, and Children’s Hospital & Medical Center.
The other new network is Blueprint Health. This network will be available in areas with zip codes starting with 680, 681, 683, 684, or 685 and the counties of Adams, Buffalo, Hall, Kearney, or Phelps. Some key network hospitals and healthcare providers include CHI Health System, Alegent Creighton Health Services, Nebraska Spine Hospital LLC, Boys Town National Research Hospital, and Children’s Hospital & Medical Center
Telehealth will be available with all networks. Employees will be offered two plan options and up to three network choices. The alternate networks have fewer hospitals and doctors than the statewide networks and will only be available to specific geographic areas, but they keep costs lower for districts and employees through lower premiums, deductibles, out-of-pocket costs.** You can see the new plan documents and the coverage/rate information on EHA’s website, ehaplan.org.
**Note: This is where we suspect some board negotiating teams may see an attractive cost savings, but where we must remind you that saving on health care premiums likely means more money put in other places, such as salary, to have a “total compensation” number within the acceptable 98-102% range under our negotiations rules.
Plan Ahead and Be Prepared. Every board should have an accurate snapshot of your negotiating position and an understanding of how changes in inputs (whether by choice or by circumstance) affect your position and strategy. “But KSB, we have to negotiate by November 1, so there’s no more time to prepare!” False! There is no requirement to settle and put everything on the table in meeting #1. (But, we do recommend putting ALL subjects at issue on the table as early as possible.)
It’s not too late to get a reliable comp study done, to have your negotiated agreement reviewed for provisions that must or should change, or talk strategy with your school or ESU attorney. Consider giving your school attorney a call just to talk through your options and strategy for a few minutes. If you’re a KSB client, give any of us a call or drop us a line (ksb@ksbschoollaw.com). Happy negotiating!