Worthington board approves 2025 insurance rates; district to self-fund dental program

The Worthington Board of Education on Sept. 23 approved new premium rates for health, dental, vision and life insurance for the Jan.–Dec. 2025 plan year and established a new fund required by state code as part of the district’s insurance and benefits administration changes.

Treasurer TJ Cusick explained the district initially projected a 15.1% medical rate increase but is recommending a 6% increase for 2025 by drawing down reserve funds. “We started out the process… looking at a 15.1% increase in premium next year,” Cusick said. “However, as a self funded entity, we built up ample reserves to be able to mitigate that somewhat this year, and so we’re recommending a 6 percent increase drawing down those reserves.”

Why it matters: The district cited above‑projection claims and higher regional medical inflation as drivers of premium growth. Cusick said ongoing hospital expansions in central Ohio are contributing to higher local medical costs and that the reserve draw is a one‑time measure, leaving the district in a middle range of reserve levels for next year.

Cusick also reported the district will move its dental program to a self-funded model while retaining Delta Dental to administer claims and maintain the provider network. “There’s risk the first year because we don’t have any reserves, but there’s also greater reward if claims level out and we cut out the profit margin of the carrier,” he said. He noted neighboring districts such as Dublin and Westerville use similar self-funded dental models with the same carrier.

The board voted to approve the insurance premium rates as presented. Board members voting yes were Kelly Davis, Amber Eppling Skinner, Stephanie Harless, Jennifer Best and TJ Cusick.

The board also approved the establishment of Fund 0249002 in accordance with the Ohio Revised Code, a technical step Treasurer Cusick said was required for accounting and internal reporting related to these changes.

Details and limits: Cusick emphasized the 6% figure is achieved by drawing down reserves and called it a “one-time fix, not a long-term solution.” The district will monitor claims and reserves going forward. No employee salary or benefit plan changes beyond the rates presented were approved at the meeting.

What happens next: The district will implement the approved premium rates for the 2025 plan year, set up the new fund as required by state code and begin administration of the self-funded dental plan with Delta Dental as the third-party administrator; staff will report back as claims experience and reserve levels develop.