Board hears 2025—26 health insurance renewal options as Dean proposes 21.9% increase, Mercy 9.9%

Janesville School District staff on Tuesday outlined health-insurance renewal options for the 2025—26 plan year and recommended the board delay a final decision until additional carrier proposals are received.

The district reported two competing renewal offers: Dean Health Plan submitted a proposed 21.9% increase and Mercy submitted a proposed 9.9% increase (Mercy—s offer included a rate cap option of 11.9% for the 2026—27 school year for planning). Benefits staff noted recent multi-year increases, described the district—s current contribution structure and warned of budget pressure if the district "renewed as is." The benefits presenter summarized the district contribution policy: "the district pays 88% of the lowest cost plan," and added staff still recommend continuing research into alternatives including self-funding, narrower networks or a takeover if significant savings are available (benefits presenter, Janesville School District).

Why it matters: The district currently subsidizes the majority of employee premiums and said a straight renewal would increase employee-paid premiums and district costs. Staff estimated current active premiums at roughly $12.1 million and said total district health-related costs including FAHP, HSA seed funds and retiree coverage approached $15.4 million annually.

Key details - Renewals received: Dean Health Plan +21.9%; Mercy +9.9% (Mercy offered an 11.9% cap option for 2026—27 in preliminary discussions). - Deductible changes: IRS adjustments raised HDHP minimums, prompting the district to increase deductible levels for 2025—26 by $100 for single coverage and $200 for family coverage so plans retain HSA eligibility. - District contribution: the district currently pays 88% of the lowest-cost plan; staff noted adjustments to that structure would shift costs between Dean and Mercy enrollees. - Potential migration: staff said they expect at least a 10% move from Dean to Mercy if the district renews as-is; presenters warned that Dean "reserves the right to decline renewal once we fall below 20%" enrollment with that carrier. - Self-funding: staff are researching self-insurance but advised it is not recommended immediately; district staff set a target date of July 2027 to become self-funded if appropriate.

Board discussion and next steps Trustees asked for additional detail on alternatives and savings already achieved by the Family Advantage Health Plan. The benefits presenter said the district will seek additional takeover offers from Mercy and Dean (responses expected April 11) and will return to the board for possible plan approval at the April 22 meeting. Staff recommended renewing as-is only if no better option emerges but emphasized continued exploration of pharmacy benefit strategies, narrow networks and direct-care options before any transition.

Ending Benefits staff said they will provide additional vendor details as they arrive and help employees with transition-of-care or enrollment questions. No final board action on the health plan occurred at the April 8 meeting; the topic remains scheduled for board consideration at the April 22 meeting.