Pennridge SD officials recommend major premium increase as medical, drug claims surge

Pennridge SD officials on Feb. 10 presented a benefits review projecting large increases in health-care costs for the 2025–26 plan year and recommended raising employee premiums to cover most, but not all, of the projected rise.

The personnel committee heard from a consultant, Mr. Pye of Conrad Segal, who said Pennridge’s 12‑month rolling, stop‑loss–adjusted medical claims per contract per month were $1,072.69 through November 2024 — about a 21% increase from the prior 12 months — and that prescription trends were about 17% over the same period. "When we compare the $1,072.69, the most recent 12 months to the prior 12 months ... the change ... has been approximately 21% in medical claim cost increase," Mr. Pye told the committee.

Why it matters: the consultant said combined medical and prescription claim cost increases approach roughly 20% year‑over‑year for Pennridge SD, driven by both a small number of very high medical claims (including one over $1 million and several in the hundreds of thousands) and rapidly rising spending on GLP‑1 drugs — medications used for diabetes and weight loss such as Ozempic and…