Tags: Healthcare Reform | obamacare | schools | costs | outsourcing | teachers

Obamacare Costs Push NJ School System to Outsource Sub Teachers

Wednesday, 12 Nov 2014 11:14 AM

A school district in New Jersey is planning to outsource substitute teachers in an effort to counter rising costs of the Affordable Care Act.

Roanoke City Public Schools in January will start using the New Jersey-based company Source4Teachers to supply it with substitute teachers, substitute aides and substitute clerical workers, according to Roanoke.com.

The switch to privatize subs is expected to cost about $1.6 million, and officials have said it will help reduce expenses linked with the healthcare act, as well as cut back on the costly paperwork involved in the law’s tracking and reporting requirements.

The Roanoke School Board voted unanimously during a meeting this week to authorize the schools superintendent to start getting subs from Source4Teachers, which already has a statewide contract for substitutes at nearby school divisions.

Officials said they began research into the outsourcing option due to the Obamacare mandate that, as of Jan. 1, employees working an average of 30 hours or more a week must be offered health insurance.

"It is certainly a budget impact in terms of offering eligible substitutes health benefits," said Sandra Burks, the system’s executive director for human resources.

Burks estimated that adding benefits for 15 substitutes would cost about $165,000, according to Roanoke.com. Roanoke subs currently do not receive benefits, but they will be eligible for some healthcare benefits after working for 90 days for Source4Teachers.

Source4Teachers Chief Operating Officer Andrew Hall, who was at Tuesday’s meeting, noted that the company works with 170 school districts and has been in business for eight years.

While noting that the Roanoke contract can be yanked at any time, Superintendent Rita Bishop said the district has properly researched the company, adding "We have done pretty good due diligence."

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A New Jersey school district has decided to outsource its substitute teachers in an effort to counter rising costs of the Affordable Care Act.
obamacare, schools, costs, outsourcing, teachers
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2014-14-12
Wednesday, 12 Nov 2014 11:14 AM
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