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Consultants warn school medical fund could dip below reserves by 2027; recommend contribution increases or plan changes
Summary
Segal consultants told the Senate Education Committee that current school medical-plan funding is adequate short-term but likely to fall below the committee—s 14% target reserve by 2027 unless district contributions or plan design change; they estimated the $300 minimum district contribution would need to rise to about $328 per enrolled participant to meet the 2027 reserve target.
Segal consultants Patrick Klein and Matt Kersting told the Senate Education Committee on Sept. 6 that the state—s school employee medical plan is adequate in the near term but faces growing deficits over the five-year projection horizon.
Klein said the firm—s projections used Milliman—s actuarial numbers (the Employee Benefits Division actuary), adjusted to reflect retirees moving into a Medicare Advantage prescription-drug plan (MAPD). "We've assumed 75 of the retirees would move to the MAPD in these projections," Klein said, noting that assumption will be confirmed at open enrollment.
The consultants identified two primary cost drivers: increasing program participation (roughly 2% per year) and medical-claims trend, which they used at about 6% year over year. Those two factors, the consultants said, account for most of the projected…
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