Rapid City Area Schools reviews medical plan performance and proposes funding adjustments
July 16, 2025 | Rapid City Area School District 51-4, School Districts, South Dakota
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In the heart of Rapid City, the Board of Education convened on July 15, 2025, to discuss critical updates regarding the health insurance plan for the Rapid City Area Schools (RCAS). As the meeting unfolded, members were presented with a detailed analysis of the medical plan's performance and recommendations for the upcoming year.
The report revealed that the current medical plan is operating at 104.2% of expected claims, indicating a slight increase from the previous year, which finished at 99%. However, this uptick is not alarming, as recent months have shown favorable trends, with claims per employee per month decreasing from 12.5% to 10.4% over the past month. The total claims per employee now stand at approximately $1,246, up from $1,129 last year.
Enrollment figures also showed a modest decline of 0.8%, with 1,176 employees currently enrolled, reflecting a slight increase from the previous year’s end figures. The report highlighted that the district is covering 63% of the medical plan costs, a figure that exceeds the industry benchmark of 58%.
As the board considered the renewal for the 2025-2026 plan year, they were presented with two options: a straightforward renewal with a 7.7% funding increase or a revised plan that would lower the increase to 6.6% by incorporating three additional months of favorable claims data. The latter option also included a proposal to raise the maximum out-of-pocket expenses, which would further reduce costs for the district.
The financial implications of these decisions were significant. The recommended changes could save the district approximately $300,000 in projected costs, bringing the total increase down to $713,000 for the district and $286,000 for employees. The board was informed that the details of the renewal would be communicated to employees following the meeting, with educational sessions planned for the upcoming open enrollment period in late July and August.
As the meeting concluded, the board faced the challenge of balancing cost management with the need to provide comprehensive health coverage for its employees. The decisions made in this meeting will undoubtedly shape the landscape of employee benefits for the coming year, reflecting the district's commitment to both fiscal responsibility and the well-being of its staff.
The report revealed that the current medical plan is operating at 104.2% of expected claims, indicating a slight increase from the previous year, which finished at 99%. However, this uptick is not alarming, as recent months have shown favorable trends, with claims per employee per month decreasing from 12.5% to 10.4% over the past month. The total claims per employee now stand at approximately $1,246, up from $1,129 last year.
Enrollment figures also showed a modest decline of 0.8%, with 1,176 employees currently enrolled, reflecting a slight increase from the previous year’s end figures. The report highlighted that the district is covering 63% of the medical plan costs, a figure that exceeds the industry benchmark of 58%.
As the board considered the renewal for the 2025-2026 plan year, they were presented with two options: a straightforward renewal with a 7.7% funding increase or a revised plan that would lower the increase to 6.6% by incorporating three additional months of favorable claims data. The latter option also included a proposal to raise the maximum out-of-pocket expenses, which would further reduce costs for the district.
The financial implications of these decisions were significant. The recommended changes could save the district approximately $300,000 in projected costs, bringing the total increase down to $713,000 for the district and $286,000 for employees. The board was informed that the details of the renewal would be communicated to employees following the meeting, with educational sessions planned for the upcoming open enrollment period in late July and August.
As the meeting concluded, the board faced the challenge of balancing cost management with the need to provide comprehensive health coverage for its employees. The decisions made in this meeting will undoubtedly shape the landscape of employee benefits for the coming year, reflecting the district's commitment to both fiscal responsibility and the well-being of its staff.
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