School Board Approves Private Insurance Option for Paid Family Medical Leave Savings

The RSU 40 School Board convened on May 15, 2025, to discuss several key agenda items, with a significant focus on the approval of a private insurance option for paid family medical leave (PFML).

The meeting began with a motion to approve the use of private PFML insurance, which was seconded and opened for discussion. A board member explained that the finance committee, along with payroll and HR specialists, had reviewed options for privatizing the insurance, which is mandated by the state. The proposed private insurance is expected to save the district approximately $100,000 over three years, while also reducing costs for employees.

The board member highlighted that the private insurance option would defer costs for 13 months, meaning the district would not need to deduct payments from employees' paychecks immediately. However, employees would still incur some costs, albeit at a reduced rate compared to the current state plan. The total estimated cost for the district and its employees would be around $650,000, which the private option would lower to approximately $409,000 over three years.

Further discussion clarified that while the private insurance would not be automatically deducted by the state, it would still be managed through the district's payroll system. Employees would see deductions for the private insurance, similar to their current health care arrangements.

The board acknowledged that this transition to private insurance is new and that they would reassess the situation after the three-year commitment. The meeting concluded with a consensus on the need for further exploration of the private insurance option, emphasizing the potential benefits for both the district and its employees.