Keller Independent School District trustees voted down a motion to direct the administration to issue a request for proposals for a new employee health‑insurance benefits consultant/broker after an extended discussion about self‑insurance, TRS participation and fiscal risk.
The motion — made by Trustee Chris Coker and seconded — failed by a 5‑2 vote, leaving the district to continue negotiations and planning under its current timeline and contracts. "We have to do better," Trustee Chris Coker said during debate, urging broader exploration of alternatives; the motion ultimately did not carry.
Why it matters: The district faces a large renewal for employee medical coverage starting Jan. 1 and limited time to implement any structural change. Administration told the board that an initial Blue Cross Blue Shield renewal proposal reached about 48 percent before negotiations reduced it to roughly 33–35 percent, numbers that would substantially increase employee premium contributions. Staff warned that moving to a self‑insured model requires significant seed funding and added financial risk that could hurt the district's cash position and credit metrics.
Trustees and public commenters pressed competing priorities and risks. Several public speakers with insurance and employer backgrounds urged self‑insurance or other customized arrangements to gain price transparency and reduce long‑term cost. "If you can reduce health‑care costs, you can reduce the cost of insurance," Chris Hamilton, a local employer, told trustees. Others opposed the idea on fiscal prudence grounds: "Self insurance . . . doesn't appear to be the answer for Keller ISD based on what I've seen," resident Richard Gottlieber said, citing reserve requirements and potential impacts on the district's bond capacity.
Administration framed the options and constraints. Staff said a full change in funding approach by Jan. 1 is not feasible and outlined operational deadlines tied to open enrollment and payroll (deductions taken in December for January coverage). Chief financial staff presented comparative figures: the district's annual contribution toward employee health insurance is roughly $6.5 million; employees currently contribute about $7.9 million. Administration also described a TRS (Teacher Retirement System) bridge option that would move a district to TRS timing but said TRS’s estimated rates, as presented, exceeded the district's current renewal projections.
Board discussion focused on timing and risk. Critics of immediate change stressed the district’s limited fund balance and the potential impact on its bond rating if large reserves were used to seed a self‑insured plan. Supporters argued a new broker or consultant might bring options — including hybrid models, stop‑loss protections and targeted contracting — that preserve or improve benefits while reducing long‑term cost.
Outcome and next steps: The motion to issue an RFP failed 5‑2; no alternative motion to pursue a different procurement path passed that evening. Administration said it will continue negotiations with current vendors, provide updated cost analyses to the benefits committee and return to the board with refined recommendations and timing for any enrollment changes.
Direct quotations in this story are drawn from the meeting transcript and attributed to listed speakers.
The board is scheduled to revisit health‑benefit planning and budget decisions before open enrollment and payroll deadlines in December.