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School board approves 10% increase to employee health insurance premiums
Summary
After discussion of rising claims and stop‑loss costs, the board approved a 10% premium increase for the district’s self‑insured health plan; the vote carried 7–0.
The Albert Lea Public School District School Board voted to approve a 10% increase in employee health insurance premiums for the district’s self‑insured plan.
Paul Durbin, who introduced the item, said the district has maintained a self‑insured plan and cited internal controls that have kept rate increases lower than those reported in other districts. Aaron Casper of National Insurance Services (NIS), the district’s benefits consultant, told the board the recommended 10% increase responds to a recent uptick in high‑cost claims and a rise in stop‑loss (reinsurance) costs.
Casper said the district covers roughly 380 employees and dependents and that the plan experienced about a 12% uptick in overall claims during the past year. He said stop‑loss costs have risen substantially across the market and that the district’s investments in programs such as the WellWork clinic and the Healthiest You virtual care option have helped lower utilization of higher‑cost care settings.
Board members asked about an out‑of‑Mayo Clinic network option and whether offering a lower‑cost network could save money. Casper said the district considered a plan that would exclude Mayo Clinic but ultimately decided not to bring that option forward because it would likely be offered only on the highest deductible tier and would limit access to specialty care. Administration committed to provide more information to the board about network/design options in a future update.
Board member Neil and others noted the district’s WellWork clinic and Healthiest You program have helped redirect claims and provide same‑day or rapid access to care. The board moved, seconded and approved the 10% premium increase; the chair announced the motion carried 7–0.
The district said approval would allow open enrollment and benefit changes to proceed before summer and noted that there will also be dental and vision changes for staff this year. Blue Cross Blue Shield is the district’s carrier for medical claims administration under the self‑insured model.
Action: Board approved a 10% increase to health insurance premiums (motion carried 7–0).
