Washoe County School District proposes 7.5% health insurance premium increase for 2026

The Washoe County School District (WCSD) Board of Trustees convened on August 12, 2025, to discuss critical changes to the district's group health insurance plan for the upcoming 2026 plan year. The meeting highlighted the necessity of a premium rate increase, with discussions centered around a proposed increase of up to 10%, while the Group Insurance Committee recommended a more moderate increase of 7.5%.

The meeting began with an overview of the current health insurance landscape within the district, which serves nearly 12,000 individuals, including employees, retirees, and their dependents. The district operates a self-funded health insurance plan, meaning it assumes the financial risk of covering claims rather than paying premiums to an external insurance provider. This model allows for potential savings during years of low claims but also exposes the district to significant costs during years of high claims.

Mackenzie Howren, the benefits manager, and Jeff Bozzo, chair of the Group Insurance Committee, presented the rationale behind the proposed rate increase. They noted that the previous years had seen a stable insurance environment, allowing for no premium increases for three consecutive years. However, as healthcare utilization returned to pre-pandemic levels, the need for a rate adjustment became apparent. The committee's recommendation of a 7.5% increase reflects a cautious approach, considering the potential for large claims that could impact the health insurance fund.

Trustees engaged in a robust discussion about the implications of the proposed increase, emphasizing the importance of educating employees on smart healthcare consumption to mitigate unnecessary costs. Trustee Westlake raised concerns about the potential for exploring alternative insurance options, given the district's size and the bargaining power it holds. However, it was clarified that the current self-funded model remains more advantageous for the district at this time.

The meeting concluded with a consensus on the necessity of the premium increase, acknowledging the challenges posed by rising healthcare costs while maintaining a commitment to providing quality coverage for employees and their families. The Board will continue to monitor the situation and explore ways to enhance the health insurance plan's sustainability and effectiveness in the future.