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Board adopts 2025–26 medical benefits plan; staff recommends staying with Blue Cross Blue Shield with modest district contribution increase
Summary
SOUTHWEST ISD approved the 2025–26 medical benefits plan to remain with Blue Cross Blue Shield despite projected claims growth; staff recommended and the board approved a $25-per-month-per-employee district contribution increase to help offset premium hikes.
The SOUTHWEST ISD Board approved the district's 2025–26 medical benefits plan after staff recommended remaining with Blue Cross Blue Shield and increasing the district contribution by $25 per employee per month.
District benefits staff said the district's claims this year are projecting roughly $13 million in claims while premium collections (employee contributions plus district share) are projected at about $11 million, creating a projected shortfall. Staff said the current enrollment is 1,686 employees on the plan and that Blue Cross Blue Shield, the incumbent, offered to continue service but with a proposed 15% premium increase. Two vendors that proposed self-funded options (Kempton Group and Lucent Health) submitted bids but staff said those proposals would require much higher rates — staff estimated a hypothetical self-funded option could raise premiums by about 40% given current claims trends.
To limit employee premium increases while the board completes spring enrollment and awaits potential state compensation actions, staff recommended staying with Blue Cross Blue Shield and increasing the district contribution by $25 per employee per month. Staff estimated a $25 monthly district contribution would cost the district roughly $500,000 based on current enrollment; higher contribution levels (e.g., $50) would cost roughly $1 million under current assumptions. Staff also said the district may revisit contribution levels in June or July depending on legislative outcomes.
Board members discussed comparisons with neighboring districts, multi‑year claim trends used for self-funding analyses, and the concentration of high-cost claimants driving much of the year's increase; staff said 27 high-cost claims are driving a substantial portion of the projected shortfall. A motion to adopt the benefits plan and the recommendation for a $25 district contribution increase was moved and seconded; the board approved the motion by voice vote with all members saying “aye.”
