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Joint Insurance Committee recommends benefit plan lineup, reports 13% renewal increase totaling about $2.2 million
Summary
The district's Joint Insurance Committee recommended keeping the current medical plan options, unbundling dental from medical, enhancing vision coverage and absorbing a roughly 13% rate increase that would raise district costs by about $2.2 million for 2025-26, the committee told the school board.
The Joint Insurance Committee on March 5 recommended that Thompson School District continue offering its current medical options while absorbing a districtwide cost increase for 2025-26.
The committee recommended continuing PPO Select, PPO 5 and a Kaiser HMO plan with a $1,500 deductible and maintaining the hospital reimbursement plan (HRP) as a secondary option. It also proposed unbundling dental from medical so employees could enroll in dental-only coverage, and upgrading the district's vision benefit. "The net effect of the renewal for the health, life, and dental insurance will result in about a 13% overall annual increase to the district, which comes in at around dollars 2,200,000.0," the committee presenter said, adding an estimated total district cost of $19,587,420 for the 2025-26 budget year.
Why it matters: health benefits are a major personnel cost and a central element of recruiting and retaining staff. Board members pressed committee representatives for context about the change, including how it compares with neighboring districts and the drivers behind the rise in claims.
What the committee said: committee staff said PPO Select remains the most popular plan and recommended continuing the district's current contribution model: paying the single PPO Select premium for full-time employees and a prorated share for part-time employees. For employees remaining on the HRP, the committee recommended continuing to pay the single HRP premium for those members even though HRP enrollment is declining. The presenter said the HRP also will see increases.
The committee argued that unbundling dental was requested by members and would give employees "voice and choice" to buy dental coverage without taking district medical coverage. On vision, the committee recommended moving to a richer plan that includes an annual frame benefit and a lower copay for exams.
Board reaction and questions: board members asked how the 13% increase compares with other districts and what is driving the cost. The presenter said higher utilization of high-cost claims is a major factor and that the trust-wide pool had seen more catastrophic claims (more than 34 claims over $100,000 were cited) and higher utilization in expensive categories such as late-stage cancer care.
Next steps: the committee's recommendation will plug into the district budget process for 2025-26. Board members asked staff to provide additional comparative market data and details on how premium contributions and benefit design choices would affect employees at different salary levels.
Ending: Board members acknowledged the difficulty of the renewal year while noting the trust's role in moderating increases that some districts report as higher. The board did not vote on benefit design on March 5; staff will bring cost and implementation details into the budget conversation.
