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Self-insurance committee recommends 5.25% medical and 3.28% dental rate increases for FY26
Summary
District actuary recommended a 5.25% medical rate increase and a 3.28% dental increase for fiscal 2026; the self-insurance committee voted unanimously to recommend those rates to the board, which will consider them March 13.
District staff reported to the board on the status of the district's self-insurance fund and recommended premium-rate adjustments for fiscal 2026 based on actuarial analysis.
Paul Bourgeois (presenting district financial summaries) said the self-insurance fund ended fiscal 2024 with about $8.7 million in cash (roughly 40% of annual expenditures) and that the fund had incurred several high-cost claims in recent years that prompted a 19.8% rate increase in the prior year. The actuarial firm Seagull (as cited by staff) projects national trends of roughly 7.9% for medical and 11.4% for pharmacy; applying the actuary's methodology led to a staff recommendation of a 5.25% medical rate increase and a 3.28% increase for dental for FY26.
Bourgeois told the board the district's self-insurance committee met and unanimously recommended (11-0) adopting the actuary's recommended rates; the committee's vote was recorded and the board was told the items will be returned on March 13 for the board, as trustees of the self-insured plan, to set final rates.
Staff said FY25 is tracking to roughly break-even after the prior increase, and that the recommended changes aim to rebuild reserves prudently while recognizing recent claim volatility. No final board vote on rates was recorded at the Feb. 20 meeting.
