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District to absorb part of 2026 health-care premium rise; staff to analyze plan adjustments
Summary
Staff reported the district faces a 17% increase in Colorado Employer Benefits Trust (CBT) medical premiums for 2026 and presented possible plan design and contribution changes to limit the district's budgetary increase while protecting employee access to benefits.
A staff presenter briefed the Ken-Caryl board on Sept. 9 that the Colorado Employer Benefits Trust (CBT) has proposed a 17% increase in medical-premium rates for 2026. Staff said the district historically has participated in CBT pooling to stabilize rates and that the open-market renewal quotes were substantially higher.
Staff said the district's 2025 renewal showed a 13.5% increase; for 2026 the open market looked like roughly a 27.5% increase while CBT proposals were about 17%, and staff therefore recommended continuing with CBT but adjusting plan design and employer contributions to limit the district's cost.
To blunt prior increases, staff described steps already taken for 2025 (reducing plan tiers and adjusting employer contributions) that produced savings equivalent to about $50,000 in district costs. For 2026 staff said they are analyzing similar options, including adding a third high-deductible health plan with a health savings account (HSA), increasing the incentive for employees who waive medical coverage (from $500 to $1,200 annually), and adjusting employer contribution splits between employee-only and dependent tiers.
Staff estimated the 2026 change could add roughly $120,000 to the district's submitted final budget if no plan design or contribution changes are made; that figure assumed employees' plan choices and other variables remain the same.
Questions and next steps: board members asked whether the district would contribute to an HSA if a high-deductible plan is offered; staff said that contribution is under consideration and would be part of numerical trade-off modeling. Staff said they will continue comparing CBT and open-market proposals and return with a formal recommendation ahead of final budget adoption.
Ending: Staff emphasized CBT remains the most cost-effective option compared with current open-market quotes and that they will provide cost-benefit analysis and recommended plan adjustments for board consideration before the December budget adoption.
