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Levy board approves voluntary benefit rates and a 14% health-premium increase; employees to pay $10/month of employee-only increase
Summary
After a benefits presentation detailing claims experience, the Levy County School Board approved recommended voluntary benefit rates and a proposed 14% increase to health insurance premiums; staff said the district expects about $400,000 in additional board-paid costs and negotiated a $10-per-month increase for employee-only coverage.
The Levy County School Board approved rate recommendations for voluntary benefits and a proposed 14% increase to the district’s health insurance premiums after staff explained the district’s claims experience and insurer proposals.
A benefits presenter told the board there would be no increase to basic life, the Texas Life portable policy, hospital indemnity, Aflac (cancer and accident coverage) or long-term disability, and no increase to vision HMO plans. The presenter said the PPO plan showed a 6.44% increase, but after comparing vendor quotes the insurance committee recommended remaining with the current carrier.
On health insurance, staff reported the district’s plan experienced unusually high claims the prior year—including a major heart-and-kidney transplant—that left the plan about $800,000 over last year’s claims. Staff recommended a 14% premium increase to address higher costs. In negotiations, the district arranged for employees to absorb up to $10 per month of the employee-only premium increase; the presenter said that change reduces the employee-only per-paycheck cost from $61.88 to $66.88 (paid over the district’s payroll schedule). The presenter said the board’s share for employee-only coverage was about $420.70 per paycheck and that the district expects roughly $400,000 in additional unbudgeted board costs for the year due to the premium rise.
The board moved and seconded motions to approve the voluntary benefit rates and the health insurance proposal; both motions passed by voice vote. Staff announced open enrollment will occur the week of Nov. 10 and noted that a newly opened Citrus County Rural Health Center (a Federally Qualified Health Center) could offer lower-cost prescriptions to plan members; staff said an MOU likely would be needed to enable mail-order prescriptions through that provider.
Board members asked clarifying questions about the premium change and the timing of prior increases; staff responded that the board had absorbed prior increases in recent years and that employee contributions had not risen for several years. The board did not record a roll-call tally in the transcript.
