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Perrysburg treasurer recommends 4.25% health-premium increase; board includes item in consent vote
Summary
The district’s treasurer recommended a 4.25% increase in employee health insurance premiums effective Jan. 1 to preserve the self-insurance fund’s reserve; the item was placed in the consent agenda and approved by the board.
Treasurer Don Drewer recommended a 4.25% increase in the district’s medical and dental insurance premiums effective Jan. 1, citing actuarial modeling, recent high-cost claims and a target reserve for the district’s self-insured plan.
Drewer told the board the plan’s stop-loss attachment point is $170,000 and said the district incurred an excluded high-cost claimant last year that cost the plan “well over a million dollars.” He described modeling by the district’s actuary that showed a 5.42% premium increase as a conservative actuarial recommendation but said the administration and consultants agreed a 4–5% increase was reasonable; Drewer and business leadership recommended 4.25% to balance preserving general-fund cash while keeping the insurance fund solvent.
Drewer said the district’s five-year average premium increase was about 4.25% and contrasted the local trend with national averages greater than 8–10%. He also outlined a draft policy framework the district plans to present to the finance committee for managing the insurance fund reserve, with a target of maintaining approximately 50% of expected claims in reserve and a range-based approach for future premium adjustments.
Board members and staff raised the trade-off that a modest increase this year could require higher increases in a future year if high claims persist. Trustees discussed options the district has considered previously, including consortium participation versus local control; the treasurer said the district had left the regional consortium years earlier and had lower claim increases than the county consortium in subsequent years.
The recommended premium change was listed in the meeting’s consent agenda; the board approved the consent agenda by roll call later in the meeting. Treasurer remarks included specific implementation details: the district purchases stop-loss insurance that covers claims above the attachment point but that carriers may
