Pasadena ISD board approves multi-million-dollar increase to self-funded medical plan

The Pasadena ISD Board of Trustees on Aug. 26 approved increases to the district’s self-funded medical plan to cover a projected shortfall, with staff citing roughly a $3.56 million overall increase to the health fund for 2026. Trustees voted in favor of the change on a motion by Marshall Kendrick, seconded by Nelda Sullivan, with no recorded opposition.
District staff told trustees the health fund has operated at a deficit due to rising health-care costs and inflation. The district’s insurance committee recommended premium increases to help offset prior-year deficits and maintain a marketable plan. Staff reiterated that employees have free options such as the district’s on-site wellness clinic to help control costs.
The motion carried by voice vote; staff did not specify the exact per-employee premium increases during the public discussion but indicated the change is intended to keep the plan self-funded and competitive for recruitment and retention. The board received related informational updates on employee benefits during the meeting.