Highlands County school board backs insurance committee plan, approves employee clinic contract

Andrew Lethbridge, deputy superintendent, told the Highlands County School Board that the district faces a roughly $2 million shortfall in its self-funded employee health plan and presented a set of recommendations from the district's insurance committee aimed at restoring solvency.

The board voted to adopt the committee's recommendation, which includes a $15 per-pay-period increase in employee contributions for employees who participate in the plan, a reduction in the health reimbursement arrangement (HRA) payment to $200, and staged changes to dependent rates intended to move grandfathered and non-grandfathered employees toward a single rate over time. The motion was approved 4–1 (Dr. Durance, Mr. Martin, Mr. Whitten and the board chair voting yes; Ms. Howerton voting no).

Why it matters: Lethbridge said the district's claims have run “hot” for two consecutive years, leaving claims about $2 million higher than revenues and depleting reserve balances. As a self-funded plan the district bears its own claims risk; Lethbridge said the district used one-time ESSER federal funds, dental-fund surpluses and transfers from the general fund to cover prior shortfalls but has limited further reserve options. The insurance audit required under Florida statutes could flag the plan as not solvent if reserves are insufficient, triggering state-level review, Lethbridge said.

What was discussed: Lethbridge described the…