Riverside Local School District Superintendent reported the district is proposing to move its employee health insurance to a self‑insured model and is planning to build reserves to cover future claims. "We're looking at a 10% overall increase," the Superintendent said, describing that figure as lower than the roughly 19% the district would expect to pay if it stayed with its current consortium.

District leaders said the decision is intended to reduce costs compared with the consortium option while requiring a conservative first year to establish reserve funds. The Superintendent said current reserves will be used to pay run‑out claims owed to the consortium and that staff are in discussions with legal counsel and the consortium to clarify responsibility if run‑out claims exceed the reserves allocated for members and participants. A staff member summarized the position plainly: "We are starting with no reserves."

Why it matters: switching to self‑insurance changes the district's immediate cash‑flow and risk profile. Under a self‑insured arrangement the district would pay claims directly up to a stop‑loss threshold and then rely on a stop‑loss insurer for very large claims, rather than paying a fixed premium to a consortium. District staff said heavy claims typically go to stop‑loss coverage, but they are still negotiating protections for unexpected run‑out exposure.

Committee members asked whether there was any indication that run‑out claims might exceed the district's allocated reserves; staff said they have not seen specifics yet and will provide updates as negotiations and legal review continue. There was no formal vote recorded in the committee meeting on adopting self‑insurance; the discussion was described as a status update with more information to come to the full board.

The Superintendent said staff are being conservative in the first year of the proposed change while preserving plan design for possible future adjustments. Officials said they will bring more detailed numbers, including reserve targets and stop‑loss terms, to future meetings once legal and actuarial questions are resolved.

Staff indicated next steps include continuing consortium discussions, completing legal review, and adding any required information to the board agenda for authorization or further direction.