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Kirkwood board approves 12% increase to employee medical premiums, renews stop-loss coverage
Summary
The board authorized recommended insurance premium changes to take effect Jan. 1, 2026, including a 12% increase for district medical plans while continuing to fully cover employee-only premiums; the stop-loss policy with Berkshire was renewed because a 25% experience refund yielded the lowest net cost.
KIRKWOOD, Mo. — The Kirkwood R-VII School District Board of Education voted Oct. 27 to approve employee insurance premium changes for 2026 and to renew stop‑loss coverage with Berkshire.
Dr. Rumpus told the board the district is recommending a 12% increase in monthly premiums for the traditional PPO and high-deductible medical plans effective Jan. 1, 2026. He said the district plans to continue paying 100 percent of the premium for eligible employee-only coverage.
"We are recommending the premium increase again for this year on our side," Dr. Rumpus said, explaining the increase is intended to cover expected 2026 claims and related costs. He said the 2025–26 budget had been prepared assuming a 10% medical-premium increase and the additional 2% would be absorbed internally.
On the employee-paid side, staff noted family and spouse coverage will also see an increase that employees will bear; board discussion indicated that rise is approximately 9 percent. The administration estimated the employer-side increase would add roughly $75,000 to $140,000 in 2026, which they expect to absorb within the approved budget package.
The board also approved renewal of stop‑loss coverage with Berkshire, which staff recommended because Berkshire’s net cost after a 25% experience refund made it the lowest-cost option.
Board members asked whether the premium increases were expected to rebuild the district’s self-funded insurance fund balance. Administrators said the increase is intended to match expected claims for 2026 rather than significantly grow the fund balance, though the district’s self-funded balance was higher at Sept. 30, 2025 than at the same time last year.
The motion to approve the recommended insurance rates and stop-loss renewal passed on a voice vote after a motion from Pangborn and a second from Kathy.
