The Board of Education received a benefits and insurance plan report March 27 recommending a change in the district’s medical third-party administrator and modest funding adjustments.

Stacy Solvine and George Van Derweig from 1Digital reviewed a competitive RFP process required under Minnesota statute 471.6161 (Health Insurance Transparency Act). Bids reviewed included the incumbent third‑party administrator (UMR/EMR), Blue Cross Blue Shield of Minnesota and the Public Employee Insurance Pool (PEIP). PEIP’s plan design and rates did not match district needs, and HealthPartners and Medica declined to bid.

According to the committee’s analysis, UMR’s options showed fixed‑cost increases above 50 percent in an initial offer, and although UMR reduced elements in a best-and-final offer, it added "lasers" (higher per‑individual stop‑loss levels) that would affect high‑cost claimants. Blue Cross’s best-and-final proposal reduced fixed costs to just under 15 percent in initial paperwork, offered a stop‑loss cap near 17 percent, proposed holding administrative rates for two years and provided $200,000 of implementation funds to offset transition costs. Based on overall modeling the benefits advisory committee recommended moving to Blue Cross and implementing a 5 percent funding increase for medical premiums.

The committee also recommended a small stop‑loss deductible adjustment from $225,000 to $250,000 per individual, which staff said would produce approximately $310,000 in fixed‑cost savings and carries limited additional risk based on historical claim patterns.

For dental coverage the committee recommended renewing with Delta Dental with a modest increase in premiums (about 1.5 percent) after the committee concluded the vendor and network experience were strong and no change was warranted.

Staff stressed that a transition includes standard "transition of care" protections for scheduled procedures and prior authorizations and that final recommendations and contract approval would be brought to the board at a subsequent meeting.

"The committee was very adamant that if we had a very similar cost that making a transition to Blue Cross was in the member's best interest from an experience standpoint," the benefits presenter said. Staff said final vendor selections and premium rates will come to the board for approval at the next regular business meeting.