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District approves 2026 insurance renewal after presentation on rising health-care costs
Summary
The Arlington Heights SD 25 board approved a resolution continuing various insurance coverages for calendar year 2026, after a detailed staff presentation on rising premiums, a change in out-of-pocket tradeoffs and an increase in stop-loss coverage.
The Arlington Heights School District 25 Board of Education approved a resolution to continue the district’s insurance coverages for the 2026 calendar year at its Oct. 21 meeting.
Following a staff presentation that outlined rising health-care costs and proposed plan adjustments, the board voted 7-0 to adopt the resolution.
Stacy (staff member), who led the benefits discussion, told the board the district has seen “a fairly substantial increase” in its insurance premium renewal and cited national trends — higher drug costs, an aging population and labor shortages in health care — as drivers of inflation. Stacy explained the district is self-insured and described two choices the insurance committee considered: keep benefits and accept higher monthly premiums, or reduce monthly premiums and shift more costs to employees when they use care.
As part of the recommended adjustments, the committee proposed raising the family plan total out-of-pocket maximum by $1,100 to limit the monthly premium increase for employees. Stacy said the district is also recommending raising the individual stop-loss level from $135,000 to $145,000 to reduce the district’s exposure to catastrophic individual claims. The district expects a savings if fewer than about 20 members hit that level in a year. The renewal also assumes a projected net pharmacy-savings of roughly $180,000 after engaging AECRx to audit prior pharmacy claims.
Board member Deb asked for clarification of employee versus board premium shares after looking at the rate sheet. Stacy replied that by contract the board typically pays about two-thirds of family plan premiums and employees pay at least 33% of family costs and a minimum 3% of single premiums.
Kevin moved approval of the resolution and Anisha seconded. A roll-call vote, called by board secretary Lana Bridal, was recorded as unanimous: the motion carried 7-0.
The budgetary impact staff presented showed the board’s share of health insurance at approximately $9.7 million in the upcoming budget cycle; staff characterized that as about a 4.5% increase over last year’s budget and a roughly 6.1% increase over last year’s actual expenditures, driven in part by enrollment and membership changes.
