Anoka-Hennepin board approves larger 2025–26 health premiums; dental raised $5

The Anoka-Hennepin Public School District school board on May 12 approved new employee health insurance premiums for the 2025–26 plan year, endorsing the administration's Option 2 recommendation and raising dental premiums by $5 a month.

District staff said the increase is driven by higher medical and pharmacy claims, including multiple very large claims in the last plan year and growing use of specialty medications. Todd Mensink, the district's director of labor relations and benefits, told the board that outside actuarial analysis from Aon showed a forecasted need for roughly a 22% increase in total premiums to cover projected claims and rebuild reserves. "The forecasted increase required is a 22% increase in total premiums, per employee per month," Mensink said during the presentation.

The administration outlined two rate options and recommended Option 2, which raises the higher-cost Choice plans by a slightly larger percentage than lower-cost plans to preserve a differential between plan tiers and give employees a lower-cost option. Under the recommendation the district would increase plan premiums for single coverage to a range near $990 to $1,245 per month (depending on plan) and family coverage to a range near $2,520 to $3,420 per month for some plans; employees' monthly shares would increase accordingly. The board also voted to raise the dental premium from $85 to $90 per month.

Officials said the district is self-insured and sets premiums to pay claims from an internal service fund (Fund 20). Mensink described recent experience as unusually severe: the plan had several very large claims in the most recent year (11 members with claims over $500,000 and 26 members with claims over $250,000), and pharmacy and medical cost trends have accelerated. He said pharmacy claims growth and the emergence of GLP-1 class drugs for weight loss and diabetes contributed to higher projected costs.

The administration presented possible cost-containment measures, such as higher deductibles, shifting prescription drug copays to deductible, raising coinsurance, or removing GLP-1 coverage for weight-loss indication. Mensink said those changes would reduce the needed premium increase only modestly and carry legal and bargaining risks: "By state statute, so you're aware, we can't reduce the aggregate value of benefits. It's a negotiated item," he said, and bargaining groups did not provide consensus on plan design changes.

Board members asked questions about the option to move away from self-insurance, the timing and logistics of midyear changes if federal action reduced drug prices, and whether board members could serve on the district insurance advisory committee. Superintendent McIntyre and other members said a midyear rate reset would be complex and would require consultation with Aon and with bargaining groups; open enrollment logistics were a particular concern.

The board voted on a motion to approve the health insurance proposal as presented (Option 2). Director Odette moved the motion; Director Langenfeld seconded. Director Simon abstained, citing a personal conflict; five members voted yes and the motion passed. Todd Mensink told the board that open enrollment is scheduled for May 27 through June 11 and that the new plan year begins Sept. 1.

The decision will raise employee premiums in the coming school year and aims to restore the district's health fund reserve toward the recommended 24%–30% of variable expenses over time. Administration said it will continue to monitor market trends, federal policy changes, and claims experience with Aon and the insurance advisory committee and bring further recommendations if warranted.