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Laredo ISD health plan faces multimillion-dollar shortfall; trustees told district may need to raise contribution
Summary
Consultants from HUB International told Laredo ISD trustees the district's employee health plan is running a deficit driven by large medical and pharmacy claims, with a low fund balance and projections that could leave the plan in the red by June and deepen deficits next fiscal year.
LAREDO ' Laredo ISD trustees heard on May 29 that the district's self-funded health plan is under fiscal strain and projected to run deficits unless changes are made to contributions or plan design.
Hub International account executive Liz Bebo summarized the consultants' analysis, saying the district's plan has been hit by high-cost medical claimants and rising pharmacy costs, including specialty drugs. "When the budget was set, we were using a higher number of employees and therefore projecting a higher contribution rate," Bebo said, adding the district's average per-employee-per-month paid claims for the fiscal year were "$817.60." She also reported that stop-loss reimbursements reduced net paid claims.
Why it matters: Trustees were told the district's current contribution strategy does not fully pay for expected claims. That gap has been covered to date by the health plan fund, but staff warned the fund balance is small and likely…
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