Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Employee Benefits topic
No spam. Unsubscribe anytime.
School division projects flat medical rates, small EAP increase under health plan renewal
Summary
Benefits consultant told the New Kent County School Board the districtis running a year-to-date surplus and recommends no increase to employee contributions for medical and dental; the employee assistance program fee would rise slightly.
NEW KENT COUNTY, Va.
The New Kent County School Board heard a health-plan renewal presentation on March 17 that recommended no increase to medical or dental rates for fiscal year 2026 while noting modest cost pressures in pharmacy claims and a small proposed bump to the employee assistance program (EAP) fee.
The presentation, given by district benefits representative Matt Davis, summarized year-to-date claims and renewal calculations and recommended holding medical rates flat. "We would propose keeping the renewal flat," Davis said, explaining the recommendation came after applying conservative trends and blending prior- and current-period claims.
Davis told the board medical spending was down about 13.5 percent year to date and overall plan costs were running a surplus through January of roughly $125,000. He said pharmacy costs were up and attributed most of that to pharmaceutical inflation, and that the divisionhas 15 claimants who account for a substantial share of exposure under the plan's specific deductible.
Davis described the technical approach the broker used to set the renewal: a conservative 8 percent trend and an 80/20 weighting of current-to-prior claims experience to smooth spikes. He said the strategy produced only a small reinsurance-driven increase and supported recommending a 0 percent increase to the district's medical contribution.
There is a single mandated benefit adjustment the presenter highlighted: higher deductible limits for the district's high-deductible health plan due to IRS rules. "It's only going up $100 per employee, $200 per family," Davis said.
On dental, Davis said the plan ran a small surplus and recommended holding the rate and employee contributions flat; he noted administrative fees would increase slightly from $5.85 to about $6.07 per employee per month.
Davis also recommended the division accept a modest EAP fee increase from $0.44 to $0.48 per employee per month, which he estimated would cost the district about $1,920 annually. He said the division is moving toward digital ID cards with Anthem and phasing out paper cards.
Board members asked for quantification of savings tied to the district's wellness and preventive-physical incentives; Davis said the division tracks utilization with Anthem and could provide a dollar estimate after reviewing clinical reports. A board member asked whether pharmacy increases were primarily inflation-driven; Davis answered they were "mostly pharmaceutical inflation," roughly in the 12 to 14 percent range in recent periods.
The health coverage presentation did not require immediate board action; the consultants and staff said they presented the renewal to inform budget planning for FY26.
The district identified no recommended increase to employee contributions for medical or dental in the renewal materials, and staff said they would provide additional utilization and cost-savings detail during open enrollment.
Ending
The board thanked Davis and district staff for the report and moved on to the superintendent's budget update. No formal vote was taken on the renewal during the March 17 work session.
