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Insurance committee recommends changes to avoid 20% premium jump; board approves 10.7% increase
Summary
District 15’s insurance committee presented a package of plan changes and voluntary programs intended to limit an otherwise larger premium spike. The board approved the committee’s recommendation to increase medical premiums 10.7% for fiscal year 2026, with dental up 5% and vision unchanged.
Sherry Lazur, leading the district’s insurance committee presentation, told the Palatine CCSD 15 Board of Education that rising claims and new high‑cost drug use had pushed the district’s self‑insured fund into an unusually large deficit and required action to avoid a much larger premium increase.
"If we didn't make any changes to any of our current coverages or plans, we would have to, ask our employees in the district premiums they would raise by 20 over 20%," Sherry told the board during the presentation. Anna (last name not given in the public record) described the fund condition: "This year... we've actually gone significantly negative to about $5,000,000."
The nut graf: The insurance committee, working with consultant Alara Group, weighed multiple plan design and vendor options and proposed a package to reduce the proposed renewal from roughly 20% to a 10.7% premium increase for medical coverage in FY26. The board voted to approve the committee recommendation.
Committee recommendations and projected effects presented to the board: - Move to a Blue Cross Blue Choice Options (BCO) network for PPO plans; Alara predicted this would drive greater provider discounts and reduce the renewal by roughly 5.5 percentage points. (Presenters: insurance committee / Alara.) - Eliminate HMO Plan B while retaining HMO A and HMO C, projected to reduce the renewal by about 2.7 percentage points. - Change mail‑order pharmacy cost structure to a two‑times retail model for a 90‑day supply, estimated to reduce the renewal by about 0.45 percentage points. - Offer two voluntary digital health programs (Hinge Health for musculoskeletal care and Galileo for virtual primary care/navigation) expected to reduce claims pressure by an estimated 0.66 percentage points if broadly used.
Based on those changes, the committee recommended a 10.7% increase in medical premiums for fiscal year 2026. The committee separately recommended a 5% increase to dental premiums and no change to vision premiums for FY26.
During board discussion, members and staff stressed the committee’s goal of preserving benefit levels while limiting cost increases. The presentation noted the district had transferred money into the self‑insured fund this year to cover claims and that continued negative balances were unsustainable.
The board approved the committee’s recommendation by roll call. The vote was recorded as carried; the approved renewal will move into budgeting and communications with employees about plan election and voluntary program participation.
