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Board approves 14.75% health‑insurance premium increase and a lower‑cost high‑value option
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Summary
Trustees approved a 14.75% medical premium increase for the district's self‑insured plan for FY27 and added a high‑value, non‑Mayo network option for employees that is roughly 5% cheaper for the high‑deductible plan; dental, vision and LTD renewals were approved with no increases.
The Albert Lea School Board approved a recommended renewal for the district's employee medical insurance that sets a 14.75% premium increase for the Blue Cross Blue Shield plan for fiscal year 2027. The action also authorizes offering a new high‑value, non‑Mayo network side‑by‑side with the high‑deductible plan and accepts renewals for dental, vision and long‑term disability with no premium increases.
Mr. Durban (district staff) introduced the item and Aaron Casper, consultant with NIS, summarized the RFP process and market drivers. Casper said market medical trend is roughly 12% and that high‑cost claim frequency and severity — a national trend — pushed renewal pricing higher. He recommended acceptance of the Blue Cross Blue Shield response and noted the district also received a pool proposal from the Public Employees Insurance Program (PEIP).
Casper said the proposed high‑value (non‑Mayo) network option would reduce premiums for the district's highest deductible plan by about 5% compared with the full Blue Cross network; he cautioned that if many employees migrate to the lower‑cost network, the district's premium revenue for its self‑insured fund could decline and staff will monitor fund balance and claims experience. Superintendent Durban reiterated the district will lean into reserves to stabilize the fund.
Board members on the insurance committee said bargaining‑unit representatives participated in the review and that the committee reached consensus to recommend the plan. The board approved the renewal and plan changes by voice vote.
The district provided example premiums in the board packet: the high‑value deductible single premium listed at about $1,235 per month and family at about $3,100 per month (figures cited from packet as presented to trustees).
