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Board selects Sanford Health Plan and combines premium groups for FY26–27
Summary
Following a committee review and negotiations, the board approved selecting Sanford Health Plan as the district's carrier for FY26–27 and combining employee premium groups; the committee cited combined rates and a second‑year rate cap as key factors.
The Bemidji school board voted to select Sanford Health Plan as the district's group health insurer for fiscal years 2026–27 and to combine premium groups for teachers and non‑teachers after a committee review required under the Minnesota Health Insurance Transparency Act.
Health committee findings: Ashley, representing the health insurance committee, reported three bids were received (PEAP, Blue Cross Blue Shield, Sanford Health Plan). After a second round of negotiations Sanford offered combined rates that administration said were lower than individual group bids and provided a 15.9% second‑year rate cap that was more favorable than Blue Cross Blue Shield's proposal.
Legal and union context: Committee staff reminded the board that unions retain statutory options to select PEAP alternatives for their members; administration said the board still selects the district's carrier but that bargaining units may elect alternatives under statute.
Board action: The board voted by roll call to approve Sanford Health Plan and to combine premium groups. Administration will proceed with contract execution and implementation plans and will coordinate with unions and payroll/benefits staff on enrollment and premium group changes.
Implications: Administration said combining groups creates a larger claims pool to help stabilize future premium swings; second‑year rate protections were cited as a primary financial consideration.
