The Weston Board of Education spent the opening portion of a budget workshop on the district’s health-insurance outlook, hearing from Phil Cross, the district’s chief financial operations officer, and an outside consultant about an anticipated State Partnership Plan rate increase that could materially affect next year’s budget.

Chuck, a health-insurance consultant from Brown & Brown, told the board that the partnership now sets rates by county and that recent statewide claims-versus-premium data show payouts above premiums — about 103% over the last 12 months — contributing to the partnership’s projected 12–15% increase. “For every dollar they get, they pay out a dollar 3 in claims and fees,” Chuck said during the presentation. He also noted the partnership finished fiscal year 2025 at about a negative $18,000,000 balance and that a prior $40 million COVID-related infusion had masked deeper structural shortfalls.

Why it matters: the district has budgeted for a 12.5% increase in health costs; board members and staff said a final state settlement nearer the 15% end of the projection range would increase the district’s insurance line by an estimated $200,000–$300,000, creating a visible budget shortfall and crowding out other priorities. Phil Cross said the district’s current budget assumption is 12.5% and that the difference between that and a 15% rate is the principal immediate risk.

Board members asked how carriers and the partnership weight claims history and when final rates will be set. Chuck said carriers emphasize the most recent 12 months of claims when quoting in the market and that the partnership has improved its timing; he expected a quarterly update from the state next Tuesday and final rates to be set in March. He added that, for many employer groups, county-based pricing will place Fairfield County (where Weston sits) toward the higher end of the state’s range.

Alternatives discussed: board members and the consultant explored self-funding as a longer-term strategy. Chuck said self-funding can lower costs by roughly 7–8% versus fully insured arrangements but exchanges that saving for increased year-to-year volatility and a need for stop-loss coverage; for a group Weston’s size (about 350 covered lives) an individual stop-loss attachment in the $150,000–$175,000 range would be typical. He recommended considering self-funding only after several years of planning and when the district is in a position to leave the partnership without untenable exit penalties.

Next steps and budget impact: staff said existing union contracts and modest employee cost-share provisions will likely blunt some of the immediate fiscal impact, but that the board should be prepared to revise budget assumptions if the state finalizes a 15% increase. The district will monitor the state’s quarterly update and report back; no formal budget action was taken at the meeting.

The workshop adjourned by consensus; board members will revisit insurance assumptions as the state finalizes rates.