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Caddo Parish committee backs insurance changes to curb rising costs; retirees express concern
Summary
The Caddo Parish School Board Insurance & Finance Committee voted unanimously to recommend a package of changes — including a 7.5% premium increase for self‑funded plans, mandatory Medicare enrollment for eligible retirees/spouses, a $100 specialty drug copay and a rise in ER copay to $250 — after staff warned of rapidly rising medical and prescription costs.
The Caddo Parish School Board Insurance & Finance Committee on Nov. 11 voted unanimously to recommend a set of changes to employee and retiree health coverage aimed at addressing rapidly rising medical and prescription costs.
Lillian Hooper, director of insurance for the system, told the committee that specialty prescriptions and a few very high‑cost claimants have driven steep increases. "Caddo, in the past 12 months, we have 958 members using GLP‑1 medications costing $8,400,000 — that's 16% of the total Rx claims," Hooper said, and added that specialty medications make up roughly 2% of prescriptions but about 46% of prescription spending.
Hooper and staff presented financial projections showing the plan’s current funding at $107,000,000 for the 2025–26 plan year and a projected cost of $133,000,000 for 2026–27 if no changes are made. To reduce that funding gap, staff recommended a 7.5% increase for employee premiums on self‑funded plans, adding a $100 specialty drug copay, and raising the emergency‑room copay from $120 to $250. They also recommended requiring eligible retirees and spouses to enroll in Medicare Parts A and B if they retire or turn 65 on or after April 1, 2026, with exceptions for those not eligible under federal rules or subject to IRMAA surcharges.
Hooper described the proposed group Medicare Advantage option as an open PPO with no deductible, no coinsurance and broader in‑network and out‑of‑network parity, plus a $50‑per‑quarter flex card and expanded dental and hearing benefits. "This is not your neighbor's Medicare Advantage plan," she said, calling it a rich plan with 0 deductible and 0 coinsurance.
Board members and staff said they would provide outreach and help retirees verify Medicare eligibility. Hooper noted the board’s staff can meet retirees individually and will host sessions to answer questions; she also cited a member survey with a 97% satisfaction rate among those on the plan at least a year.
Members of the public spoke during the meeting’s visitor period. John Glover, who identified himself as a retiree, said he had returned from Blue Advantage to Medicare A and B because Blue Advantage "gave me less" than traditional Medicare and warned the board to consider retirees who rely on fixed incomes. Jordan Thomas, president of Red River United, told the committee that employees have not received a permanent pay raise since May 2017 and said repeated insurance increases combined with stagnant wages risk driving staff away: "This is not sustainable," he said.
After discussion, Committee member Katie McLean moved the recommendation package and Mister Adebayo seconded. The committee voted unanimously to forward the recommendation to the full Caddo Parish School Board. The recommendation includes the 7.5% self‑funded premium increase, required enrollment rules for eligible retirees and spouses with stated exceptions, a $100 specialty drug copay, and an increase of the ER copay to $250.
The committee also committed to posting information for employees and retirees online and to continued outreach. The committee adjourned following routine closing motions and holiday acknowledgments.
