School District Considers Self-Funded Health Plan Amid Rising Premiums and Employee Concerns

November 21, 2024 | ARLINGTON ISD, School Districts, Texas


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School District Considers Self-Funded Health Plan Amid Rising Premiums and Employee Concerns
Arlington ISD is taking significant steps to evaluate its employee health insurance options, with a focus on potentially transitioning to a self-funded plan. During the Board of Trustees meeting on November 21, 2024, trustees discussed the importance of gathering comprehensive feedback from a diverse range of employees, including teachers, bus drivers, and administrative staff, to ensure that their needs are adequately represented in any future decisions.

The district has already conducted a survey, receiving approximately 336 responses, which represents a 10% return rate from the 2,610 surveys sent out. This feedback is crucial as the district considers its options for health insurance, particularly in light of rising costs and the complexities involved in managing healthcare plans.

Trustee discussions highlighted the potential advantages of self-funding, including the possibility of lower premiums and greater flexibility in plan design. However, concerns were raised about the challenges of transitioning away from the Texas Retirement System (TRS) health plan, particularly regarding employee satisfaction and continuity of care with existing providers. The board acknowledged that while larger districts might achieve better rates through collective bargaining, the unique needs of Arlington ISD must also be considered.

The administration plans to model the potential impacts of a self-funded approach over the next year, aiming to provide a clearer picture of cost savings and employee satisfaction. This modeling will be crucial in determining whether the district can offer a more advantageous health plan without sacrificing the quality of care that employees currently enjoy.

Trustees expressed their commitment to keeping the lines of communication open with employees throughout this process, emphasizing the importance of transparency and collaboration in making decisions that affect the health and well-being of the district's workforce. The board is expected to revisit these discussions in September and October of next year, aligning their findings with the TRS's rate announcements in mid-2025.

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