McAllen ISD projects health fund shortfall; staff propose contribution increase, plan design changes and pharmacy RFP review

McAllen Independent School District benefits staff presented a health plan update Monday that projected the health insurance fund would finish the current year in the red and could show a larger deficit next year without design changes or additional contributions.

Andy Silva, speaking for benefits and insurance, told trustees the health fund ended the prior fiscal year with a marginal positive balance but is projected to finish 2024–25 about $1.4 million in the red. Without changes to employer contribution or plan design, Silva said the projection for 2025–26 is roughly a $4.8 million deficit. "At the end of last fiscal year, barely did that break even point," Silva said of the fund balance; he later summarized the projection as "about $1,400,000" in the red for the current year.

Why it matters: A sustained deficit in a self-funded plan may require increased employer contributions, increased employee premiums, or plan design changes; all three carry financial and personnel implications for employees and the district.

Staff-proposed and modeled options described in the…