Committee advances 13% dental employee premium increase and endorses health‑plan redesign after Medica renewal
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Summary
An insurance and HR committee recommended a 13% employee dental contribution increase and supported a Medica coinsurance option intended to reduce a nearly $1.0 million renewal gap; both recommendations will go to the full Waunakee Community School District board for a final vote.
A staff member for the Waunakee Community School District told the committee that two benefit items — the district dental plan and the district health plan — were the primary focus of the meeting and recommended sending both to the full board for final action.
The staff member said the district self‑funds dental claims (with Delta Dental as third‑party administrator) and that the dental fund, which rose during the COVID years, has since been spent down to about $220,000 as of the February report, with current claims running roughly $100,000 per year. The insurance committee recommended increasing employee dental contributions by 13%, the first such increase in five years. The staff member illustrated the estimated monthly effect for employees, saying a single plan contribution would rise from roughly $7.27 to about $8.22 and a family plan from about $16.29 to $18.41.
The committee then turned to the district’s health insurance renewal with Medica. The staff member said the negotiated renewal came in at 11.9% and that, without plan changes, the additional premium cost to the district would be about $986,036. The business office had been budgeting based on a smaller district contribution increase (about 5%), leaving a gap that, if unaddressed, could push higher premiums onto employees.
In response, Medica offered a plan option that keeps current deductibles but introduces coinsurance after the deductible until employees reach out‑of‑pocket maximums. Staff said modelling of that structure showed much smaller renewal increases for several plan designs (approximate modeled changes cited by staff: HMO about 0.6%, point‑of‑service about 1.4% and the high‑deductible health plan about 4.1%). Under the proposed coinsurance model staff said most employees’ monthly contributions would decrease compared with current levels, but a minority of higher‑use employees — roughly 5–15% by staff estimate — could see higher out‑of‑pocket costs.
To reduce the burden on higher‑use employees, staff said the district plans to expand clinic services and is discussing voluntary supplemental products (for example, Aflac‑type plans) that employees may choose to enroll in. The committee also tasked the district’s benefits advisor USI to gather details on eligibility for supplemental plans and options for employees with preexisting conditions.
After discussion, a committee member moved to advance the insurance committee’s recommendations — the 13% dental employee increase and the supportive change to the health‑plan structure — to the full board for consideration in April; the motion was seconded and approved by voice vote. Staff said the items will appear on the board agenda next month for final action.
