District health plan change credited with large drop in claims spending, staff say
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Summary
District staff reported a switch in health plan administration that reduced claims spending from an earlier 117% of premiums to roughly 60% as of October, helping ease budget pressure and preserving employee benefits, the presenter said.
At the Dec. 9 meeting a district benefits presenter reported that the district changed health carriers earlier in 2025 to avert a projected 25% premium increase and to stabilize costs.
The presenter (introduced by a board member as Mr. Haugen) said the district previously spent about 117% of premiums in claims but, after changing plans, was seeing claims of "just under 60%" as of October. He framed the change as a substantial improvement for the district budget and said the district continues to offer comparable benefits to employees through new networks identified in the presentation.
The presenter described district annual medical insurance spending at roughly $700,000–$800,000 and said the change was made after a consulting company solicited alternative providers; the transcript lists prior vendor names variously as Kairos and a new pool spelled in multiple ways ('Azovate', 'Asbate'). The presenter said the new provider uses Meritain and Aetna networks.
Board members reacted positively to the update and noted that if the present trend continues, the district hopes to sustain the reduction in health care costs for employees. They also discussed the impact of benefit costs on recruitment and retention and tied the savings into broader budget deliberations.