Mason City Schools will abandon the controversial TrueCost health plan after several grievances by teachers.
The union representing teachers has filed a grievance over the plan, which the district imposed starting Jan. 1.
It pays Medicare rates plus 40 percent. Hospitals have said they will not accept it, prompting a standoff with employers desperate to limit their health-care costs.
Several teachers said they were denied treatment, and others would have faced huge medical bills as hospitals billed them for the difference.
Mason City Schools officials said they would go back to last year’s plan, a traditional design negotiated with insurers.