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Board approves 5% medical and 6% dental premium increases for 2025–26; district share to cover half
Summary
After review by the insurance committee and consultant National Insurance Services, the board approved a 5% increase to the district’s self‑funded medical plan and a 6% increase to dental rates for the 2025–26 plan year; administration estimates the district share is roughly half the aggregate increase per bargaining agreements.
The Lakeville Area Schools board on March 18 approved recommended renewals for the district’s self‑funded medical and dental plans: a 5% increase to medical renewals and a 6% increase to dental for the 2025–26 plan year.
What administration recommended: Brenda Elbrick and consultant Aaron Casper of National Insurance Services presented plan performance and recommended increases based on 24 months of claims. Casper told the board that the district’s medical claim mix has shifted (about 31% pharmacy this period versus 24% the prior year), with specialty drug and GLP‑1 class spending contributing to upward pressure. He noted the district’s virtual-care program and a reduced‑cost provider network had helped offset some cost and that stop‑loss protection and internal reserves lowered the renewal base.
Why it matters: The insurance committee recommended a 5% medical renewal and a 6% dental renewal. District staff noted collective-bargaining agreements and employment contracts set a cost‑sharing formula: the aggregate increase will be split approximately 50/50 between the district and employees (that is, the district picks up about 2.5 percentage points of the 5% medical increase). Administration estimated the district’s share of the medical increase at roughly $750,000 for the coming plan year.
Board action and vote: Director Amber Cameron moved to approve the renewals; the motion was seconded by Director Paul Carbone. After discussion of program performance and reserve levels, the board approved the renewals (the meeting transcript records unanimous approval; detailed roll-call votes were not read aloud beyond that announcement).
Key facts from the presentation: the district’s medical claims (12-month view) were presented near $25.5 million with pharmacy rebates reported; the district’s specific stop‑loss is $200,000 per claim; current Fund 20 reserves were described as roughly 25% of expected claims. Administration told the board it is actively evaluating pharmacy carve‑outs and other cost‑containment strategies in response to rising pharmacy share.
Next steps: Administration will finalize rates and implement the renewal effective July 1, 2025; benefits committee work on pharmacy strategies and reserve targets will continue and staff will provide implementation details to bargaining units during upcoming contract negotiations.
Ending: The board authorized staff to proceed with the renewals and continue committee work on pharmacy cost mitigation and reserve policy.
