Benefits broker: rising health‑care costs push Pueblo D70 to renew Cigna plans, add dental

Dave Vecchio, the district's benefits broker, presented the district's 2026 insurance renewal analysis and recommended plan adjustments to address rising health-care costs.

Vecchio summarized national and state trend data, citing PricewaterhouseCoopers’ projection of 8.5% and Aon’s 9.6% for national medical-cost trend. He said Colorado varies more widely, noting a 7% to 16.1% range across carriers and regions. Vecchio described several cost drivers: growth in high-cost claimants, pharmacy and specialty drug costs, and higher inpatient and outpatient utilization following the pandemic.

Using the district's plan data, Vecchio reported that the district's plan is operating at a 123% loss ratio on a rolling 12-month basis (up from about 97% at a prior snapshot), with claims rising and enrollment declines reducing premium dollars. He said a third‑party analytics firm projected the district's plan health at about 3.7 on a 1–5 risk scale (where 5 indicates highest projected exposure).

To respond, Vecchio recommended renewing four Cigna medical plans, eliminating one low‑enrollment plan that presented poor cost/benefit tradeoffs for members, and moving the district's dental coverage to Cigna. Vecchio told the board that adding dental to the portfolio lowers the medical renewal by about 2%, which the presentation estimated to be roughly $140,000 in savings. He also said the district's vision coverage with VSP is mid‑term guaranteed and will not change through 2029.

Board members asked questions during the presentation; Vecchio said the district's claims experience largely follows the industry trends he cited and emphasized the need for employee education on plan choices.

No formal vote on renewals was recorded in the meeting minutes; the presentation concluded with agreement to continue work with the benefits committee and carrier negotiations.