Wisconsin Teachers Face High Healthcare Costs; Legislative Solutions Proposed

In Wisconsin, the financial burden of healthcare costs on public school teachers is significant, with nearly 20 percent of their average $61,000 salary going toward health care benefits. Some districts report healthcare expenses consuming more than 50 percent of an employee's total compensation, creating financial vulnerability for educators who face potential health crises with substantial out-of-pocket costs. In comparison, legislators with similar salaries pay about half as much for their health care benefits, highlighting disparities in benefit costs within the state. Advocates are proposing legislative efforts to allow school districts to pool resources for health insurance purchases, aiming to reduce costs similarly to mechanisms used by other state employees. The current legislative environment, shaped by 2011's Act 10, restricts collective bargaining on benefits, which has contributed to rising health insurance premiums outpacing stagnant teacher salaries, exacerbating workforce retention challenges. Data from the WEA Trust and related sources illustrate extreme cases such as districts with family deductibles exceeding $20,000 and out-of-pocket maximums as high as $26,000, all relative to moderate teacher salaries. Private sector employees face similar healthcare cost challenges, but generally have more options to manage these increases. A recent legislative proposal seeks to study integrating educators into the state group health insurance program to address these disparities, but progress remains uncertain amid pending committee review.