The Parkway School District Board of Education approved new health and benefits plan designs and providers for 2026 on Sept. 10, adopting premium increases and coverage changes the district says are intended to stabilize its self‑funded insurance fund.

Board action came after more than an hour of staff presentations and public discussion about the district’s projected plan‑year shortfall and a set of recommended changes intended to produce roughly $10.9 million in revenue and savings for the district’s self‑funded insurance account.

District staff told the board that the recommendations include a 25% increase in district contributions to certain premiums, a 15% increase in employee premiums, a 25% increase in retiree premiums, and an across‑the‑board $100 monthly increase to one base plan. Staff also proposed removing coverage for GLP‑1 medications when used for weight loss and eliminating a premium plan option. The package, staff said, would generate or save about $10.91 million and leave the district still paying roughly 76% of total premium dollars for plan year 2026.

“This is just a courtesy or a service that we offer to our retirees. This is not something that they have to opt into,” the district benefits staff member said when describing how Parkway administers retiree Medicare prescription drug plans through outside carriers.

Why it mattered: staff described the district’s self‑insurance fund as strained. The board was told the district had moved $7.5 million from its operating account into the self‑funded insurance fund (split as $2.5 million in FY25 and $5.0 million in FY26) to stabilize reserves. Without additional changes, staff said, the fund balance would be at an unsustainably low level by the end of plan year 2026.

Key financial and plan details presented by staff
- $7.5 million moved into the self‑funded insurance fund (split $2.5M FY25, $5.0M FY26).
- Recommended district premium increase (25%) projected to add about $5.4M.
- Recommended employee premium increase (15%) projected to add about $700,000.
- Recommended retiree premium increase (25%) projected to add about $500,000.
- A $100 monthly increase to a base plan projected to add about $1.37M.
- Removal of GLP‑1 weight‑loss coverage projected to save about $1.23M.
- Eliminating the premium plan projected to save about $430,000.
- Aggregate revenue/savings from the package: about $10.91M; district target discussed was approximately $10.4M.

GLP‑1 discussion and alternatives: district staff and board members focused much of the public discussion on the proposal to stop covering GLP‑1 medications for weight loss. Staff said GLP‑1 drugs consistently appear near the top of the district’s pharmacy expense reports and that roughly 220 plan members (about 2.5% of members) are currently on GLP‑1s for weight‑loss purposes. Staff estimated program cost per member varied but commonly ranged from about $1,000 to $1,800 per month per prescription. Staff said the district’s pharmacy benefit manager (Express Scripts) contract and associated rebate structure constrained options for partial coverage; under the current formulary, attempting partial coverage or tinkering with co‑pays would risk losing large pharmacy rebates.

Staff described alternatives the district would offer to affected members if GLP‑1 weight‑loss coverage is removed, including digital and coaching programs such as Real Appeal, Lark (Lumongo was referenced as a digital chronic‑disease management partner), and a proposed NewLeaf Nutrition option to be funded initially from an unspent wellness budget for members who were actively using GLP‑1 medications. Staff said tapering plans and clinical transitions would need to be individualized and that the district would work with affected employees and their clinicians.

Board discussion and vote: Board members asked about long‑term financial projections, the potential for more members to enroll if the district continued coverage, and whether temporary additional district funding could preserve GLP‑1 coverage for a year while the board’s budget task force studies longer‑term solutions. Staff said additional one‑time district funding was possible but would require tradeoffs elsewhere and would shorten the runway the district has to prepare for the plan‑year change and open‑enrollment timeline.

By roll call the board approved the recommendation to adopt plan options, service providers, and monthly rates effective Jan. 1, 2026, through Dec. 31, 2026. The vote was 6–1.

Actions and outcome: The motion approved the full package of plan options, service providers and monthly rates for Parkway Health benefits (medical, dental, vision, life, disability and voluntary programs) for plan year Jan. 1–Dec. 31, 2026. Roll‑call voting recorded six yes votes and one no vote; the motion carried.

What happens next: The district will implement the new rates and benefit structures at open enrollment and begin plan‑year administration on Jan. 1, 2026. Staff said they will continue to provide education to employees, offer the alternative wellness and coaching options referenced, and work with the board’s budget task force on longer‑term financial planning.