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Fairfield Union Local board approves medical plan increases, will draw on reserve to cover shortfall
Summary
The Fairfield Union Local Board of Education on June 9 approved proposed insurance rates and providers for fiscal year 2026: Plan A premiums will rise 10% and Plan B 3%, with the district using about $359,000 from a roughly $4.0 million medical fund to cover the remainder of an insurer request.
The Fairfield Union Local Board of Education voted unanimously June 9 to approve the district's medical, pharmacy and ancillary insurance plan rates and carriers for fiscal year 2026.
Superintendent Belvoir said the board's action would increase premiums for the district—s grandfathered Plan A by 10% and raise Plan B by 3%, and that the district would use part of its medical fund balance to cover the difference between those increases and an underwriting recommendation.
District staff presented details of the proposal and the rationale. Mrs. Nolan, district staff responsible for benefits, told the board UnitedHealthcare proposed an underwriting increase of about 11.56% across plans. The district—s split approach—10% for Plan A and 3% for Plan B—would raise roughly $184,000 of the $543,000 the underwriter estimated would be needed. The board will draw the remaining roughly $359,000 from the medical fund, which staff said currently holds just over $4,000,000 and would be reduced to about $3,600,000 if the board used the planned amount.
Mrs. Nolan also said Plan A has about 20 employees remaining on it and Plan B has about 155. She told the board employees who want to change plans would have the next open enrollment in November; the district cannot allow mid-year changes under Section 125 rules unless a qualifying event occurs.
Dental, vision and life insurance rates will remain flat for the coming year, staff said. Providers will remain UnitedHealthcare for medical, Delta Dental for dental, VSP for vision and Equitable Life for life insurance.
The board approved the insurance rates and providers as presented. The recorded roll call vote was unanimous.
Board action on the insurance rates follows staff comments that medical and pharmacy trends nationwide are outpacing inflation and that the district had not increased premiums since moving to UnitedHealthcare in 2021 except for a 7.5% increase in 2022 coming out of the COVID period.
Managerial and budget context: staff said maintaining a healthy medical fund balance is important because the district is self-funded and claim levels vary year to year.
Questions and next steps: staff advised employees that the next opportunity to switch plans would be during November open enrollment, with any change taking effect in January.
