Consultants: increase district health funding by $5M, raise employee contributions 15% to stabilize EPISD self‑funded plan

District benefits staff and external consultants presented options to address an expected shortfall in the district's self‑funded health plan. Liz Bebo of HUB International, who described the consulting team's analysis, told trustees the plan faces an estimated calendar‑year shortfall of about $6,600,000 based on current claims projections. Bebo said negotiated changes with the district's third‑party administrator (Cigna) and pharmacy contracting improvements are expected to reduce the shortfall (she cited a $250,000 administration fee holiday and roughly $500,000 in pharmacy savings for 2025), bringing an adjusted gap nearer to $3,300,000 this year.

Bebo and district staff presented a recommended package for calendar year 2026 that would increase district funding to about $7.49 per‑employee per‑month (presented as a district contribution level) and raise employee contributions by 15 percent. The presenters said the combination of district funding increases, the contribution adjustment and contract improvements would position the self‑funded plan to cover projected claim costs for 2026 with a small surplus depending on claims.

Patty Cortez, the district's chief of human capital management, introduced the presentation and said the district has not raised employee contributions in the last four years as a strategic decision. Juan Chavez (director of employee benefits) and Bebo described plan features: medical, pharmacy and behavioral health claims are administered by Cigna; stop‑loss insurance covers catastrophic claims; the district funds a $1,000 HSA contribution for enrolled employees and maintains a wellness program that offers incentives (for example, a $100 incentive cited for flu vaccination and other screening incentives up to $400 for certain chronic‑condition programs).

Trustees asked whether the district or employees must “be proactive” to make the savings work; presenters said proactive plan management involves both district oversight and employee engagement (education, wellness participation and plan choice). Trustees also asked about per‑paycheck impacts; presenters laid out sample per‑paycheck and monthly amounts showing modest increases in employee contributions if the board approves the package.

No vote was taken at the workshop. Administrators said the recommendation will be included for board consideration alongside the FY2026 budget at the upcoming board meeting.