The USD253 Board Meeting held on September 24, 2025, focused heavily on the district's health insurance renewal for 2026, with significant discussions surrounding the potential transition from a fully insured to a self-funded health insurance model. This meeting, attended by board members and representatives from IMA, aimed to explore the financial implications and operational changes associated with this shift.

Cody Purdy, the national practice lead for public and labor at IMA, presented an analysis of the current health insurance landscape. He highlighted that the district's fully insured renewal would see a staggering 26.5% increase, which raised concerns about the sustainability of continuing with the current provider. Purdy emphasized that self-funding could be a viable alternative, allowing the district to take on more control over its health plan while potentially reducing costs in the long run.

The self-funded model would require the district to pay for claims directly, but with a cap to protect against excessive costs. Purdy explained that while the worst-case scenario for self-funding would still be lower than the projected fully insured renewal, the district could also build reserves over time, providing a financial cushion against future claims volatility.

Board members expressed concerns about the risks associated with self-funding, particularly in the initial years before reserves could be established. Purdy reassured them that with proper management and a commitment to a multi-year strategy, the district could navigate these challenges effectively. He noted that historically, self-funded plans have performed better than fully insured options over a five-year period, allowing for more flexibility and control over health benefits.

In addition to the self-funding discussion, the board also reviewed alternative proposals, including one from Aetna, which offered a lower premium but with reduced coverage options. The differences in plan designs were carefully examined, with board members noting that while Aetna's proposal might save money upfront, it could lead to higher out-of-pocket costs for employees.

The meeting concluded with a call for further analysis and consideration of the self-funding option, as well as a commitment to engage in more detailed discussions about the implications for district employees and their health benefits. The board recognized the importance of making an informed decision that balances cost, coverage, and the well-being of its staff and students. As the district moves forward, the discussions from this meeting will play a crucial role in shaping its health insurance strategy for the coming years.