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Board approves Security Health renewal with HRA to blunt large premium increases
Summary
The 3 Lakes School District board approved a renewal with Security Health for 2024–25 after staff described a plan that raises plan deductibles while using a district-funded health reimbursement arrangement (HRA) to keep employeeseffective costs close to prior years and reduce district premiums by about 5%.
The 3 Lakes School District board voted to contract with Security Health for the 2024–25 plan year after staff and finance lead Caleb walked the board through a redesign that mixes higher deductibles with a larger district-funded HRA.
Staff framed the decision as the product of a difficult market for school insurance renewals. Caleb told the board the district had faced double-digit renewal pressure earlier this year and that the recommended approach increases single deductibles to $3,200 and family deductibles to $6,400 while the district funds an HRA that keeps employeeseffective exposure near prior levels. "By picking up the HRA piece, it's basically staying the same for the employee," Caleb said, adding the approach reduced the district premium change from a projected 20% increase to about a 5% decrease.
Caleb described plan mechanics: copayments are removed until the deductible is met, HRA maximums rise (single from $1,000 to $3,200; family from $2,000 to $5,400), and projected HRA utilization would likely be 60–70 percent. He told the board that, even at high HRA utilization, the district's overall insurance costs would not increase dramatically compared with earlier renewal estimates.
Board members asked whether staff had received employee feedback; staff said they had received one positive email and planned education sessions led by benefit representatives to walk employees through the new HRA and how cost flows will appear on paychecks.
The board approved the contract by voice vote. The motion was made by a board member and seconded; no roll-call tally was recorded in the meeting transcript.
Next steps: staff will finalize contract paperwork and provide education to employees about how the HRA and deductible changes will affect out-of-pocket timing and pay-period deductions.
