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District recommends renewing benefits as-is after carrier quotes; aims to self‑fund by July 2027
Summary
Benefits administrator Jamie Brown presented health, dental and voluntary benefit renewal options and recommended renewing current plans without design changes. The district reported carriers’ proposed rate increases, a small dental increase and a plan to work toward a self-funded model by July 2027, while preserving dual-choice if feasible.
Jamie Brown, the district benefits administrator, presented the School District of Janesville’s 2025–26 benefits renewal analysis at the April 7 board meeting and recommended renewing the current dual‑choice health plan unless Mercy Health Care presents a total-takeover offer that materially improves costs or access.
Brown said the district met with the Benefits Advisory Committee and employee association representatives and set goals to minimize staff disruption, preserve comprehensive coverage and plan a responsible path to self-funding. "We feel that July of 2027 will be the best time for the district to take that step forward," Brown told the board.
Key figures Brown presented: Mercy and Dean are the district’s two primary carriers; enrollment is roughly 80% Mercy and 20% Dean. Dean proposed a 21.9% renewal; Mercy proposed 9.9% for 2025–26 and offered an 11.9% cap for 2026–27. If the district were to "renew as is," Brown estimated employees would see about $660,000 more in combined contributions and the district’s employer premium cost would increase by about $1.2 million in the coming year. The administration estimated total district annual health-related expenditures (premiums, HSA contributions, retiree costs and the Family Advantage Health Plan) at about $15.4 million for current active staff and retirees.
Brown said dental premiums will rise about 3%; the combined employee cost increase is roughly $4,000 for the year and the district’s dental expense will rise about $30,000. Voluntary benefits (accident, critical illness) carried by MetLife and others will see no plan design changes; Lincoln Financial voluntary lines remain under negotiation.
The administration analyzed alternatives including switching anchor carriers, moving to a health reimbursement account (HRA), and full self-funding. Brown said alternative carriers (Anthem, Quartz, UnitedHealthcare) declined to quote because they judged themselves uncompetitive; the state plan (ETF) would be about 7% over the district’s budget and would require a three-year commitment with possible surcharges due to the district’s high medical-loss ratio.
Brown described trade-offs of contribution-model changes: the district currently pays 88% of the lowest-cost plan; increasing the district share to cover both networks would cost roughly $500,000 and could trigger migration between plans that raise overall costs. The district asked Mercy and Dean to submit offers for a total-takeover; Mercy’s proposal would need to be "substantial" to change the recommendation. Brown said the district will continue to pursue plan-management strategies (biometrics, chronic-condition management, direct primary care and care navigation) while preparing a runway toward self-funding.
No formal contract change was approved at the meeting; Brown said the recommended administrative action is to renew benefits as proposed unless a materially better total-takeover offer arrives by the carriers’ deadlines. The board did not vote on a renewal at the April 7 presentation.
