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Ask HISD: Why are our insurance premiums so high?

2013 September 20
by HISD Communications

Q: Why do HISD’s medical plans cost so much? My spouse works for a different company and his/her rates are much lower than ours.

A: Many businesses in the private sector fund all or a significant portion of their employees’ medical coverage, including the cost of covered dependents. And while this is a wonderful benefit for those organizations’ employees (and their families), the downside is that it disguises the true cost of those benefits.

Big expenses like medical benefits make up a significant portion of a company’s payroll costs, but it is one that is more easily absorbed by those in some private industries, such as the oil and gas sector. As a government sector employer, HISD has more limited resources, but still funds a significant part of the cost of its employees’ medical coverage. However, employees are expected to fund most of the cost for any dependents they elect to cover on one of HISD’s medical plans.


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