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TUSD employees to face higher health premiums after benefits board declines subsidy
Summary
The employee benefits trust did not approve subsidies because of reserve requirements; the governing board voted 3–2 not to accept the recommended benefits package that would have resulted in premium increases for staff.
District staff and union representatives met with the Employee Benefits Trust and benefits consultants before Tuesday's vote to review medical-plan renewal options for 2026–27. Benefits staff projected a 12.3% increase in total medical costs (roughly $5.8 million). The trust recommended keeping the three existing plans, but deferred any subsidy because the trust must maintain a six-month claims reserve.
Human Capital officers said employee premiums have been held flat for five years through subsidies and one-time funds but that the combination of rising claims and reserve rules left no room for subsidies this cycle. Board members debated options including plan consolidation and alternative carriers; two members voted no on the final approval and the benefits renewal failed 3–2.
What happens next: staff said open enrollment preparations require a decision by April. The board and benefits trust said they will continue to look for cost mitigations and alternate plan structures before the enrollment window.
