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Santa Rosa board approves insurance renewal plan using reserves to limit employee premium increases
Summary
The insurance committee recommended and the board approved a 2026 renewal package that holds premiums for the HDHP and standard PPO, increases employer HSA contributions, negotiates a lower dental rate increase, and applies a two-month premium holiday funded from district reserves.
The Santa Rosa County School Board on Oct. 9 approved the insurance committee's recommended 2026 renewal package that uses the district's reserve balance to limit premium increases for employees while restructuring several benefits and incentives.
Committee leaders and Marsh McLennan Agency presented claims trends showing rising medical and pharmacy costs and a high loss ratio for the PPO premier plan (reported at 154.2% through August for the year). To avoid large premium spikes for employees the committee recommended and the board approved: no premium increase for the high-deductible health plan (HDHP) and the standard PPO plan for plan year 2026; an increase in the district HSA contribution from $40 to $70 per month for employee-only plans and higher contributions for family tiers (up to $140 a month); a two-month premium holiday (December and January); and continued wellness and telehealth offerings (FreshBenny) with a restructured Vitality incentive payout (smaller tiers with a top Platinum payout).
District leaders noted the HDHP had a lower loss ratio (about 72.2% year to date) while the PPO premier plan showed much higher utilization and loss ratios. The committee also negotiated to reduce a proposed 25% dental-rate increase from MetLife down to 16%. Officials cautioned that the district's self-funded account is fluid and stressed the need for disease-management and wellness strategies to reduce utilization long term.
The board voted unanimously to accept the insurance committee's recommendations and asked HR and benefits staff to implement premium changes, HSA contribution adjustments and the teacher salary allocation processing related to human resources work to update job codes and payroll entries.
