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Board hears proposed 9.3% premium increase on Anthem plan; district recommends staying with TLC after RFP
Summary
Staff presented results of a health‑insurance RFP and recommended remaining with the current carrier (TLC). Anthem premiums rose 9.3% and Kaiser premiums rose 5.4%; the district proposed maintaining employer contributions using a premium‑averaging method.
The School Board received a presentation on proposed health insurance premiums for FY 2025–26 after a request for proposals issued in November 2024. The division’s benefits consultant evaluated four responses and recommended the current carrier, Local Choice (TLC), as the most competitive option for active employees and retirees.
Staff reported that Anthem premiums increased by 9.3% and Kaiser by 5.4% in the responses. The district described a premium‑averaging approach for employer contribution, which calculates a single employer contribution per tier (employee only, employee plus one, family) based on the average premium for comparable plans, excluding high‑deductible plans and Kaiser within that tier.
Under the proposed employer share for FY 2025–26, the division would contribute 83% of the average premium for the employee‑only tier and 73% for employee‑plus‑one and family tiers. Delta Dental premiums were listed as increasing 3% and VSP vision premiums unchanged.
Board members asked about what makes TLC most competitive and whether the employer could increase its share to offset the premium growth. Staff said the evaluation considered plan benefits, pricing, retiree offerings and that the district has some ability to increase employer contribution; the presented employer share figure reflected what finance advised the division could support.
Staff also noted IRS and commonwealth thresholds that changed the high‑deductible health plan deductible levels for FY 2026 (individual and family deductibles increased modestly). The presentation concluded with an invitation for board questions; members expressed concern about the premium rise and urged staff to continue competitive shopping.
No formal action on premium contribution levels or plan selection was taken at this meeting; the presentation informed upcoming budget decisions.
