Waunakee board renews 2026 health plan, reduces employer HSA deposits

The Waunakee Village Board voted Thursday to renew the village’s employee health insurance through Quartz for the 2026 plan year and to reduce the village’s annual contributions to employee health savings accounts (HSAs).

Village staff and consultant Al Jaeger of USI told trustees the plan renewal reflected a 13% premium increase driven mainly by medical trend and several large, high-cost claims that pushed the current loss ratio to roughly 106% of premiums paid. "We had a 13% increase," Jaeger said during the board presentation, adding that medical trend accounted for the bulk of the rise.

Officials recommended keeping the village’s current medical carrier arrangement tied to the UW system and maintaining the self-funded dental plan and the family reimbursement program that helps employees who enroll on a spouse’s plan. To limit budget pressure, staff recommended reducing the employer HSA contribution rather than shifting more cost to employee paychecks.

During discussion trustees asked about the drivers of the spike in claims and the options the village had considered. Jaeger pointed to high-cost specialty drugs and delayed preventive care as key factors and said a workplace clinic like the district’s could help reduce long-term costs by improving prevention.

Board president (unnamed) moved to "renew the village's health insurance benefit through Quartz for the plan year 2026 with reductions to the annual employer health savings account contributions and maintaining the family reimbursement account and dental insurance benefits as presented." The motion was seconded and carried by voice vote.

The change takes effect for the January 1, 2026 plan year. Staff said they will provide employee education in September and October and bring final enrollment materials to employees ahead of the effective date.

Next steps: staff will finalize the HSA contribution levels, complete employee communications, and implement the renewal for 2026.