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Shakopee School District renews third‑party health plan administration with Medica; rates rise about 3%
Summary
The school board approved continuing Medica as the district’s third‑party administrator and stop‑loss provider for its self‑insured plan; human resources staff said the district’s overall rate increase for the coming term was approximately 3%.
The Shakopee School Board approved continuing Medica as the district’s third‑party administrator for employee health benefits; district human resources staff said the self‑insured plan’s overall rate increase was approximately 3 percent.
Keith Gray, the district’s director of human resources, explained that Minnesota law requires periodic competitive solicitations for benefit administration and that the district is self‑insured. Gray said Medica was retained after the bid and that the district was satisfied with Medica’s service, stop‑loss arrangements, and administration costs. He told the board the district’s utilization for the year was favorable, which helped keep the rate increase to roughly 3 percent.
Gray reviewed plan options available to employees, noting a high‑deductible HSA option with a $5,000 deductible and other plan tiers used by staff. Board members asked clarifying questions about utilization, plan networks and premium tiers; Gray said the district had adjusted plan cost shares in prior years to better align premiums with utilization.
A motion to approve the insurance recommendation carried by voice vote; board members thanked staff and noted the relatively small rate increase.
