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Sartell‑St. Stephen chooses USI as benefits broker after RFP; district cites long‑term savings
Summary
After a formal RFP and interviews, district administrators recommended and the board agreed to hire USI as the district’s employee‑benefits broker, citing its population‑health strategies, pharmacy consulting and reporting capabilities despite a higher fee than the lowest bidder.
The Sartell‑St. Stephen School District administration told the board at its April meeting that, following a request for proposals and finalist interviews, it recommends hiring USI as the district’s employee‑benefits broker; the board consented to the administration’s recommendation.
Administrators said they issued an RFP in February to evaluate brokerage firms for employee health, life and dental benefit plans. Of six firms solicited, all responded and three finalists were interviewed by district staff and representatives from the Sartell Education Association Insurance Committee and the principals’ association. The firms’ fees ranged from about $45,000 to $60,000 annually; the administration recommended USI with a service fee of roughly $60,000 a year. The district said its current broker fees have been about $53,000 annually.
The administration described USI’s advantages as stronger negotiating leverage with insurance carriers, additional reporting capabilities for a self‑insured plan, and two services the district lacked with other finalists: a population‑health (wellness) offering and a pharmacy consultant. "They stood out to us as the firm best positioned to meet our district's needs," a staff member said during the presentation.
Timing and contract: the district plans to engage the broker on July 1; benefits plans renew January 1 and no plan changes would take effect until the next open‑enrollment cycle. The administration said it expects a minimum two‑year contract because the firm needs time to implement strategies and demonstrate savings. The board discussed fees and asked about the difference between the chosen firm’s fee and the lowest cost proposal; the administration noted a roughly $15,000 fee gap between the lowest bid and USI and about a $7,000 increase compared with the current broker’s total revenue to the district.
Why it matters: district leaders said annual premiums have continued to rise and that the chosen broker’s strategies — including on‑demand virtual care, low‑cost prescription programs and targeted population‑health initiatives — could reduce claims costs over time and limit future premium increases for employees and taxpayers.
Next steps: the administration will finalize the contract, begin onboarding with USI on July 1 and work with the broker through the summer and into fall to prepare 2026 plan options for January open enrollment. The board acknowledged this is an administrative action that will return to them with contract documents.
