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Ysleta ISD adopts redesigned employee health plan, adds telemedicine co‑pay change
Summary
After a presentation from Gallagher, the Ysleta ISD board approved a new three‑option health plan structure and a telemedicine co‑pay amendment intended to reduce the district's projected health fund deficit.
The Ysleta Independent School District board of trustees voted to adopt a redesigned employee health benefits plan and an amendment changing telemedicine co‑pays after a presentation from consultant Gallagher on Aug. 27.
Gallagher consultants Brandon DuBarr and Natalie Hackett told the board the district's self‑insured health fund is running well above national trend and projected a 2026 claims budget near $43.7 million if no changes are made. DuBarr said, “Ysleta ISD is double the national cost,” and Gallagher recommended a package of plan design changes, stop‑loss adjustments and targeted savings programs to reduce that projection to about $33.5 million.
The recommendation would consolidate four existing plans into three options (a platinum/copay option, a middle copay plan and a high‑deductible health plan), raise certain deductibles and out‑of‑pocket limits, increase stop‑loss coverage, and fund employees' health savings accounts to seed the HDHP option. Gallagher also recommended removing coverage of GLP‑1 drugs for weight loss (while maintaining coverage for diabetes) after presenting utilization and cost figures: 407 utilizers in 2024 attributed about $3 million in plan spend and 2025 usage trending toward $5.5 million–$7 million.
Trustees pressed Gallagher for detail on cost drivers and safeguards. Trustee Chris Hernandez asked how employee contributions compared with statewide benchmarks; Hackett said the district's benefits remain “generous” compared with peers even after the proposed changes. Trustee Shane Haggerty asked whether telemedicine co‑pays could be reduced to encourage cheaper virtual visits; Gallagher said telemedicine usage is relatively low (about 15.2% of members) and any co‑pay change would have a small budgetary impact but agreed to analyze options.
Superintendent Dr. De La Torre said the administration will run an employee outreach campaign, starting campus visits the week after the meeting and continuing to open enrollment on Oct. 13, and that the district plans to seed HSAs (for example, $500 for individuals and $1,000 for families) to help cover initial HDHP expenses.
Formal action: Trustee Shane Haggerty moved to approve the Gallagher proposal with an amendment reducing telemedicine co‑pays to $0 for the proposed platinum and traditional copay plans effective Jan. 1, 2026; Trustee Mike Dwyer seconded. The motion passed 6‑1. The board directed administration and Gallagher to continue monitoring claims monthly and to bring further recommendations as needed.
Key quantitative details discussed: the district's current 2025 budget figure cited by Gallagher was $31,000,000; Gallagher projected $39,000,000 to close 2025 given current claims; without changes they projected $43,700,000 for 2026; the recommended package reduced the projection to approximately $33,500,000 but left roughly $2.5 million still to be addressed through targeted programs (digital hypertension/cholesterol programs, pharmacy drug‑savings reviews, and removing GLP‑1 coverage for weight loss). Gallagher proposed raising the stop‑loss deductible (presented as moving from $375,000 to $425,000) and reducing plan options from four to three.
The board vote adopted the plan structure; trustees and staff said the plan will be implemented for the 2026 plan year with an enrollment and education campaign before open enrollment.
The district also approved contingent contract actions related to benefits administration during the meeting (see related contracts article).
