Steve Packer

Montage CEO Steve Packer in a lobby of Community Hospital of the Monterey Peninsula.

Patients and providers agree that even with health insurance, the costs of health care can be inordinately expensive. That is something that Dr. Steve Packer, CEO of Montage Health and Community Hospital of the Monterey Peninsula, acknowledged on Friday, March 15 in remarks during Montage Health's annual meeting.

"The cost of health care can be out of reach for teachers," Packer said.

He announced the creation of the Montage Health Fund for Teachers, which will be open to teachers in any Monterey County school—public or private, any grade level from K-12—to receive grants of up to $1,000 toward their costs of health care. "We are really excited about that," Packer added.

Montage Health seeded the fund with $5 million. It will be managed by the Community Foundation for Monterey County, with more details to be released soon.

A Montage spokesperson says grants will be available to any teacher working in Monterey County, and funds can be used to offset insurance premiums. Funds will be disbursed by school districts. Details about the parameters for use of funds are forthcoming.

Teachers unions have been vocal in advocating for adjustments to their insurance policies, seeking increased coverage at local hospitals. Representatives have been speaking at public hearings about health care costs in Sacramento and negotiating locally with hospital administrators. 

A group called MCSIG (for Municipalities, Colleges, Schools Insurance Group) insures public employees from 27 member agencies, including school districts such as Salinas Union High School, Monterey Peninsula Unified, Carmel Unified and Pacific Grove Unified.

MCSIG and Salinas Valley Health came to an agreement that took effect March 1 in which SVH will accept MCSIG members on its lowest-cost PPO Select plan. MCSIG leaders continue negotiating with Montage.

"We are actively negotiating with MCSIG on ways to reduce the cost of care for Monterey County teachers," Montage spokesperson Erika Yanez writes by email. "We have put forward a proposal that will yield significant savings for those MCSIG teachers who deliver their baby at CHOMP. In addition, the proposal would allow those who were forced to deliver out of Monterey County to instead remain close to home, utilizing CHOMP’s Baby-Friendly Certified Family Birth Center."

Meanwhile, the new Montage Health Fund for Teachers will become available prior to the end of the 2023-24 school year with an exact launch date TBD. 

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