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Owatonna board approves 9% health, 3% dental premium increases for self‑insured plan
Summary
The Owatonna Public School District board voted April 28 to accept a self‑insured health insurance renewal that raises premiums by 9% for health and 3% for dental, citing higher claims and a roughly $2.1 million reserve to cover current-year expenses.
The Owatonna Public School District board voted April 28 to accept a renewal for the district’s self‑insured employee health plan that raises health premiums by 9% and dental premiums by 3% for the upcoming year.
District finance director Mark Stotz told the board the insurance committee and the district’s broker reviewed recent claims and recommended the increase to restore balance to the plan. “We’ve got about a $2,100,000 fund balance in this self insured plan,” Stotz said, and recommended the rate changes while noting that—even with an increase—this is reasonable compared with many other plans.
Board members discussed premium trends and the role of the reserve in smoothing costs. Stotz said plan usage grew in the past year and that premiums coming in were not sufficient to cover claims, which prompted the recommended adjustments. He told the board the 9% health increase and 3% dental increase were intended to avoid a larger spike later and that the district’s reserve would cover current-year shortfalls.
The board approved the renewal by voice vote. The motion as presented accepted the district’s self‑insured health insurance renewal with Blue Cross Blue Shield; mover and seconder were not specified on the record. The motion carried.
The decision affects employees and the district’s benefits budget; the board received no request tonight to alter the decision or to change the renewal timing.
