Sunnyside trust approves covering projected 2.3% health plan renewal increase and continues $700 HSA contribution

Members of the Sunnyside Unified District Trust voted to cover an estimated 2.3% increase in health plan costs for the 2025–26 plan year — roughly $186,006.51 — and to continue the trust’s $700-per-employee annual health savings account (HSA) contribution.

The vote came after a presentation on plan performance, funding projections and renewal assumptions that showed the trust’s reserves and the district’s self-funded plan running below national benchmarks and with strong fund balances.

Chris, a presenter, told trustees the renewal projection used medical and pharmacy trend assumptions of 8% and 11.4% respectively, and that the district must raise the individual high-deductible health plan (HDHP) deductible by $100 to stay IRS compliant. The projection included a 2.3% funding factor — the roughly $186,006.51 the district asked the trust to absorb — and assumed stop-loss pricing would be finalized in May. The presentation noted stop-loss carriers have been submitting large increases recently and the trust used a placeholder factor (15% individual, 10% aggregate) for budgeting until formal stop-loss terms are available.

The trust’s financials, presented earlier by Rachel, showed total assets of about $10 million, including roughly $2.5 million in checking and about $7.1 million in investments. Trustees and presenters said the district had targeted a reserve equal to nine to 12 months of claims (estimated at about $6–$7 million) and that current reserves exceed that target.

Trustees discussed using reserves to absorb the renewal increase and the possibility of a future premium cost holiday for employees. Gabriel Vargas and other trustees described the trust’s financial position as healthy; one trustee said the request to fund the $186,000 was “reasonable” given the reserves. The trust also reviewed current benefit participation and cost drivers: five employees had claims over $50,000 in the first six months and those large claims accounted for about 15% of the plan’s spend to date.

A motion to approve the funding as presented and to continue the $700 annual HSA contribution was moved (mover not specified in the record) and seconded by Anthony. Anthony then called for the vote; the meeting record shows multiple “aye” votes and the motion passed.

Trustees directed staff to finalize stop-loss negotiations in May and to return with final stop-loss pricing for approval. Staff also noted they will provide a premium-holiday analysis and review trust member terms and upcoming vacancies at a future meeting.

Background: Trustees were told that since the district moved to a self-funded model eight years ago, average annual increases have been lower than peers (the presenter cited an eight-year average increase of 3.95% and a five-year average of 1.37%). The presentation also compared the district’s per-employee-per-month costs favorably to national benchmarks and noted ongoing well-being programs and vendor rebates that have helped control cost trends.

The trust adjourned after confirming future agenda items would include final stop-loss terms, Wells Fargo financials, a premium-holiday analysis and a review of member terms.