Huntley Community School District 158 finance staff told the School Board Wednesday that prescription drug costs and several high-dollar claims have driven a sharp increase in health-plan spending and pose a major budget risk.
The district’s finance director, Gerald Meyer (staff member), told the board that “the biggest risk…continues to be health insurance,” and reported nearly $1.2 million in claims for the month of March, consistent with high monthly claim totals earlier in the year.
That spike, Meyer said, is concentrated on prescription (Rx) spending: the district’s 2024 plan year shows an increase of roughly $700,000–$800,000 in Rx costs compared with 2023. Meyer said some very large claimants entered the plan in 2024 and those costs are not abating.
Why it matters: rising health costs can force the district to redraw budgets or change benefits. Meyer said the district will present claims data to the Health Insurance Committee and examine whether joining a larger purchasing co-op — which could lower fixed fees such as stop-loss insurance — would reduce overall costs.
Board members and staff discussed options. Meyer said the district plans to meet with Gallagher, a co-op administrator, and will evaluate whether pooling with other districts could reduce fees and stop-loss costs. “We may have to look at benefits,” he said, and added the goal remains healthy employees and a sustainable plan for the district.
Board member remarks referenced past attempts to change pharmacy arrangements. Meyer recounted a 2011 effort by local districts to move pharmacy business to a cost-plus vendor; he said the effort stalled because doing so threatened broader Blue Cross Blue Shield services and stop-loss coverage.
What’s next: Meyer and district leadership will review detailed claims data with the Health Insurance Committee and bring recommendations to the board. He asked stakeholders to expect additional analysis in the coming weeks.