Winchester schools warned of sizable health'insurance renewal, division weighs phased increase in employer contributions
Get AI-powered insights, summaries, and transcripts
Subscribe
Summary
Presenters told the Winchester Public School Board the pool renewal for FY27 could rise 10'15%, driven by a jump in recent medical claims; staff recommended a phased, multi'year approach to narrow the gap with neighboring jurisdictions and ease employee out'of'pocket costs.
Winchester Public Schools officials told the school board on Feb. 9 that health'insurance renewal rates for fiscal 2027 are likely to rise substantially and that the division is preparing options for how to share those costs between the district and employees.
Mr. Ward, who introduced the consultancy team, said the division "anticipated a 10 to 15% increase," as actuaries incorporate higher recent claims experience into renewal calculations. Matt Smith, president of Corporate Benefits Consultants, told the board the division'specific claims picture is the main driver: "Our gross medical claims over that period of time are up 47%. On a net basis ... they were up 22%." He explained that reinsurance and pooling across the state's Local Choice program reduce volatility but do not eliminate increases when utilization climbs.
Why it matters: health'care costs make up a large portion of personnel expense. Smith and district staff said the Local Choice pool (administered by Anthem) sets premiums using a two'year lookback and pooled reserves; the district has 528 covered employees representing 919 members. Division staff calculated that matching the city'employee contribution levels would cost roughly $1.4 million next year; matching Frederick County'style contributions (with a small benefit change) would cost roughly $1.0 million.
Board response and next steps: Superintendent'level staff and presenters emphasized that renewal figures are not final and that the state's pooled calculations carry discretion. As Mr. Ward said, the division is "hoping within the next week or two" to have final renewal numbers and recommended a measured three'year approach to close the employer contribution gap so employees pay less out of pocket while preserving budget stability.
What was not decided: the board did not adopt a new contribution schedule at the meeting. Presenters discussed options and provided comparative figures showing Winchester employees currently pay more, on average, than their city and county counterparts; no formal motion was made to change employer contributions during the session.
The division will report final renewal rates when Anthem/Local Choice releases them and incorporate those figures into the superintendent's FY27 budget recommendation for board consideration.