District staff recommend staying with MUSIC for property and liability coverage; board warned of possible rate increases

District administration recommended the board remain in the Missouri United School Insurance Council (MUSIC), the state's large public‑school self‑insurance pool, when the district's six‑year bid cycle expires. Administration said MUSIC's retrospective adjustment mechanism returns unused premiums to members, and that the district's current $1,000 deductible for property is far lower than the $100,000–$250,000 deductibles typical of fully insured products.

A staff member summarized the tradeoffs: MUSIC is a self‑insurance pool used by roughly 90% of Missouri districts and offers prospective retrospective payments when claims are low; fully insured products may charge higher deductibles and transfer risk differently. Staff warned the board that insurance rates have risen statewide and to expect increases, but noted that the district can trigger a bid process any year if market conditions change.

The staff member also pointed out a statutory element that aggregated reinsurance bidding is handled at the pool level and that MUSIC will solicit reinsurance for the collective membership; as a result, participating districts are not required by statute to run individual competitive procurements in all cases. Board members asked for staff to seek negotiation with MUSIC and to return options at the October meeting. No formal vote occurred; administration kept the decision as a future action item.

Administrators emphasized flexibility: the district can choose to remain with MUSIC year‑to‑year and, if future premium increases appear unreasonable, can trigger an open bid process earlier than the suggested six‑year cycle.