Wayzata board approves 7% health and 2% dental rate increases, keeps carriers and plan designs

The Wayzata Public School District Board of Education on March 26 approved recommended renewals for the district’s employee health and dental plans, accepting a 7% increase for health coverage and a 2% increase for dental while retaining existing carriers and keeping plan designs unchanged.

Joanne, benefits manager in the district’s human resources department, told the board the insurance committee reviewed three vendor offers and, after asking two vendors for best-and-final proposals, “unanimously recommend[ed] staying with UnitedHealthcare with no plan changes.” The committee also recommended continuing ClearScript for pharmacy benefits and Delta Dental for dental coverage.

The board’s vote on the health plan renewal was a roll call: Dan Genestra, Sheila Pryor, Valentina Ayers and Milan Sahony voted yes; three board members were absent. The motion passed. The subsequent vote to renew the self‑insured Delta Dental plan by 2% passed by the same roll call tally.

Why it matters: the district is self‑insured for medical and dental benefits, which means the district pays claims directly and purchases stop‑loss insurance to limit exposure to very large claims. Joanne told the board the insurance committee models several years of claims data and monitors reserves to keep the plan solvent. The committee reported an historical average annual rate increase of about 4.66% over more than two decades and recommended the 7% health increase as fiscally prudent given market pressures.

Discussion and committee review: committee members represent teachers, clerical, custodial, principals, food service and unaffiliated employees and included internal finance staff; the committee also consulted the district’s benefits consultant and interim executive director during the request‑for‑proposal process. Joanne said the committee examined three years of medical and pharmacy claims, reserve balances, and comparative market renewals. She cited market increases in neighboring self‑insured districts this year—Eden Prairie (about 11%), Edina (about 20%), Rosemount (15–18%) and Elk River (12–13%)—and said the district’s recommendation keeps the district below many regional trends.

Joanne explained stop‑loss coverage as a per‑person cap that limits the district’s liability for catastrophic claims. When asked about the district’s reserve balance, a board member asked for the current figure; Joanne did not have the precise number at the table but said it was “right around 3 and a half million.” Board members confirmed the HR committee and district finance staff had reviewed and cleared the recommendation. Sheila Pryor, chair of the HR committee, said the HR committee supports the recommendation.

Plan design and member impact: the committee recommended no changes to deductibles, out‑of‑pocket maximums or copay structures for the 2025–26 plan year. Joanne noted the district covers about 1,500 employees on the plans (plus families) and that pharmacy trends—particularly specialty and weight‑loss medications—are a growing driver of cost. The committee recommended maintaining current network and benefit structures while pursuing pharmacy management and member education strategies to moderate costs.

What the board approved: (1) selection of UnitedHealthcare on a self‑insured basis for administration and stop‑loss, acceptance of ClearScript for pharmacy benefit administration, and a 7% rate renewal for the 2025–26 health insurance plan year; (2) continuation of Delta Dental on a self‑insured basis and a 2% rate renewal for the 2025–26 dental plan year. Both actions passed by roll call vote with four affirmative votes and three absences.

The board adjourned after the votes. The district packet lists the insurance committee membership and additional detail about the request‑for‑proposal timeline and the consultant analysis.