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Conroe ISD projects $9.9M shortfall for 2025–26 health plan; trustees to consider premium increases and a $3.4M one-time transfer
Summary
Conroe ISD benefits staff and outside consultants told the Board of Trustees the district’s self-funded employee health plan is projecting a near $10 million shortfall for 2025–26 and recommended plan-design changes, employee premium increases and a one-time $3.4 million contribution from the general fund.
Conroe ISD staff and outside benefits consultants told trustees the district’s self-funded health plan is projecting a material shortfall for 2025–26 and recommended a combined approach of plan-design changes, employee premium increases and a one-time transfer from the general fund to stabilize the plan.
Karen Garza, presenting benefits recommendations with consulting firm Gallagher, said the district has not raised employee premiums in four years. "We've not raised our rates in 4 years," Garza said, noting that the plan enjoyed a multi-year period of favorable performance but is now seeing higher utilization and a sharper rise in high-cost claimants.
Gallagher consultant Derek Eco told the board the plan’s recent cost trajectory exceeded typical market trend…
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