District leaders warned Oct. 28 that Socorro ISD’s employee health fund is operating at a structural deficit and the board discussed multiple options to address shortfalls for plan year 2026.

Mario Carmona, director of employee benefits and risk management, summarized the district’s current self-funded plan structure (three plan options: consumer-driven health plan, base plan and a closed premier plan) and identified pharmacy costs—especially recent prescriptions for GLP‑1 weight-management medications—as a major driver of rising claims. Carmona said the benefits advisory committee modeled options that would carry a deficit into 2026 with the goal of fully funding the plan by 2027.

David Solis, the district’s chief financial officer, said the health fund has operated with shortfalls for several years and that continuing to subsidize it from the general fund is not sustainable. Solis told trustees: “If we make no changes to the current plan, then we do face a $25,000,000 deficit next year.” He and staff said the board’s decision is contingent on the outcome of a local revenue measure (referred to in the meeting as “VADER”), which, if passed, would create new annual revenue that could be used temporarily to soften premium increases.

Administrators presented a menu of options modelled by the benefits advisory committee and the district’s consultant, including: carry a $5,000,000 deficit into 2026; carry a $3,000,000 deficit; implement the benefits committee’s recommendation (an option described in the presentation using a rate labeled "117" and associated with a $9,500,000 scenario in discussion); or fully fund the health plan for 2026 (larger premium increases). Carmona said a program edit to manage GLP‑1 medications could generate an estimated $1,700,000 in cost avoidance to the plan. The presentation also showed a notable increase in Wegovy prescriptions between July and September that amounted to roughly $1,000,000 in additional pharmacy spend over that period.

Board members pressed for operational and timing details. HR and benefits staff said their target was to present a final recommendation to the board at the next meeting and to begin education and enrollment immediately afterward because carrier files must be submitted in early December. Key timeline points discussed in the workshop included: election results of the Nov. 4 vote could affect available revenue; trustees planned to canvass votes Nov. 7–17; administration targeted a decision and adoption of a plan at a meeting the week of Nov. 12 so HR would have no more than three weeks to complete enrollment activities before carrier deadlines (files due around Dec. 5).

Trustees asked for additional analysis before a final decision: CFO Solis was asked to provide a concise risk assessment (low/medium/high/extreme) of each funding option and the administration agreed to prepare a two-track briefing that can be published the Friday after the election, showing feasible options if the local measure passes and if it fails. Liz Bebo, an account executive with HUB International, cautioned that the presented deficit numbers were projections based on recent claims and that actual future claims could be higher or lower; Bebo said the stop-loss premium and administrative fees offered by Aetna were firm while the medical and pharmacy claims projections are subject to fluctuation.

Administrators discussed plan design levers to encourage enrollment in the consumer-driven plan, including increasing the district contribution from $5.55 to $6.55 per employee per month and raising the district annual health-savings-account contribution from $800 to about $1,200 per employee as a competitive incentive. Staff also described a proposed utilization-management program for weight-management drugs that couples pharmacy edits with clinical support to encourage appropriate use and potential discontinuation when clinically appropriate.

No final vote was taken; the meeting functioned as a workshop. Trustees asked staff to provide: (1) an explicit risk-ranking of the modeled funding options, (2) an updated consumption/claims snapshot if available before the next meeting, (3) a Friday-after-election packet showing two feasible recommendation paths (VADER passes / VADER fails), and (4) operational details for a condensed enrollment period (staffing, extended hours, multi-language materials, and a dedicated hotline). HR said it will provide in-person site assistance, phone support (English/Spanish), extended hours and several weekend dates to assist employees with enrollment if the board adopts a new plan in mid-November.

The board and staff repeatedly cautioned that adopting a deficit option will require future rate adjustments in subsequent plan years and that any temporary relief from new local revenue would not fully resolve the structural imbalance without follow-up changes to plan design, contributions or reserves.

Discussion points, clarifying detail and timing remain on the agenda for the board’s next scheduled meeting.