Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Mercer says claims running above budget; $5.8M reversion would nearly erase 2026 shortfall
Summary
Mercer told the Virginia Beach School Board the employee health plan’s most recent claims drove a loss ratio of 102.9% and pushed the 2026 projection into a roughly $5.9 million shortfall; district staff and Mercer showed that a $5.8 million reversion would nearly erase that deficit.
Mercer presented a financial update to the Virginia Beach School Board on the district’s self-funded employee health plan, reporting that recent claims have outpaced budgeted premiums and driven an unfavorable projection for 2026.
David Keogh, principal with Mercer, said the plan’s current loss ratio — total plan cost divided by budgeted premium — is 102.9 percent. "The most recent three months exceeded the budget," Keogh said, and that experience pushed updated projections into a larger shortfall than previously reported.
Keogh walked members through incurred-claims trends through September 2025 and said period-over-period increases of 8.6% for medical and 14.6% for prescription drugs have produced a combined total trend of about 10.4%, above the 9% annual trend assumption the district had been using. He identified…
Already have an account? Log in
Subscribe to keep reading
Unlock the rest of this article — and every article on Citizen Portal.
- Unlimited articles
- AI-powered breakdowns of topics, speakers, decisions, and budgets
- Instant alerts when your location has a new meeting
- Follow topics and more locations
- 1,000 AI Insights / month, plus AI Chat
