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District projects conservative 2025–26 budget; stop‑loss insurance quotes show large rate increases
Summary
Administration presented a conservative preliminary budget with a small projected spend‑down and warned trustees that stop‑loss insurance for the employee health plan faces large market increases; staff recommended Blue Cross Blue Shield at a roughly 33% increase to maintain a $200,000 stop‑loss deductible.
District finance staff presented an updated preliminary 2025–26 budget and an insurance renewal update for the employee health plan.
Finance staff said the district used conservative assumptions for revenues (including a 1.8% assessed valuation growth estimate) and that the current draft budget shows a modest use of reserves — "we're pretty close to a 0 budget," staff said, with spend‐down representing roughly 0.28% of the total budget. Trustees were told the district is deliberately conservative so the budget presented in June is likely the "worst case" and could improve if state revenues or assessed valuations come in higher.
On stop‑loss insurance for the self‑funded health plan, staff said the district received three competitive proposals and several insurers declined to quote. Staff reported three proposals: Blue Cross Blue Shield at a 33% increase, Symetra at 33%, and Optum at 23% but with a condition that would single‑out one employee for a higher deductible (a $395,000 "laser" on one individual) — which staff said carried higher statistical liability. Staff recommended staying with Blue Cross Blue Shield at the $200,000 stop‑loss deductible and said the estimated annual cost increase would be about $330,000. Staff noted the health care trust balance (reported in the meeting as approximately $5,000,000) can absorb the increase in the near term.
"The recommendation we'll bring to you is gonna be, to go with Blue Cross Blue Shield and stay with the $200,000 deductible," staff said, while also noting that the market pressures reflect a broader trend of rising large claims and expectations that the district will come closer to market averages.
No formal contract award or budget adoption occurred at the informational presentation. Staff said they will return with final pricing and recommended insurance actions for board consideration.
