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MMSD staff outline health‑insurance RFP, warn of market uncertainty and potential switching penalty
Summary
District HR and its broker described a fall RFP to solicit medical-plan bids for 2026–27, projected district premium costs, market pressures from federal policy changes and a potential $24 million early‑termination charge if the district leaves one incumbent before July 1, 2027.
Board President Jared Castro opened the operations work group meeting with an update and discussion about the district’s planned request for proposals (RFP) for employee health insurance for 2026–27.
Jennifer (senior executive director of human resources) introduced Rachel Carabell, benefits manager, and representatives from M3, the district’s broker. Carabell said “M3 is our broker. They will facilitate the process for that RFP,” and reviewed a list of potential respondents identified by the broker, including local HMOs and national carriers.
Carabell told the board the district expects to pay about $84.4 million for health insurance in…
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