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EPISD staff recommends $5 million infusion and 15% employee premium increase to stabilize self‑funded health plan
Summary
District staff told trustees a combination of a $5 million district contribution and a 15% raise in employee contributions would be needed to sustain EPISD's self-funded health plan amid rising medical and pharmacy costs, and proposed contract and utilization strategies to reduce future pressure.
El Paso Independent School District staff recommended Thursday that the district add $5,000,000 to its health plan and raise employee contributions 15% to address rising medical and pharmacy claims and dwindling plan reserves.
The recommendation came in a budget workshop presentation on employee benefits. "After several meetings with staff over the past few months, the recommendation is to increase the district funding by $5,000,000 and increase employee contributions by 15%," said Liz Bebo of HUB Consulting, a presenter on the district's health plan.
The proposal is intended to shore up EPISD's self-funded plan, which staff said is running a structural shortfall because employee contributions and district funding have not kept pace with claims. "We do see that the health plan fund itself is experiencing a short fall created when contributions don't cover the health plan costs," Bebo said, adding that health fund reserves are "diminishing," which in turn puts pressure on the general fund.
Nut graf: The recommendation is advisory and was presented for the board's consideration during budget development, not adopted at the workshop. Staff said the district must…
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