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Cartwright approves ASBA medical plan after staff says switching will cap district exposure and lower some employee costs
Summary
After an RFP and analysis, the board approved switching to the Arizona School Boards Association (ASBA) Insurance Trust's fully funded medical plan; staff said the switch caps district exposure near $11 million next year compared with an estimated $15.5 million if the district stayed self-funded, and ASBA offered multi-year rate caps and implementation support.
The Cartwright Elementary District governing board voted to move its medical insurance to the Arizona School Boards Association Insurance Trust after staff described a market review and set of tradeoffs between staying self-funded and selecting a fully funded trust.
District consultants and staff presented data showing the district’s current self-funded claims trend would require materially higher premium contributions next year unless the district reduced coverage or found other offsetting savings. Staff said the self-funded projection put district contributions near $15.5 million next year based on current claims trend, while ASBA’s fully funded quote would cap the district’s premium obligation near $11 million for the first year. Consultants also said ASBA agreed to limit year-to-year premium increases to no more than 5% through 2030 as part of negotiated terms, a protection district staff described as unusually favorable given current medical-inflation trends.
Administration discussed trade-offs: some co-pays and prescription costs would rise for certain plan users, while deductibles and hospital co-insurance would improve in the ASBA option; staff said the ASBA plan was overall more favorable for families with employee-plus-one or family coverage and reduces the district’s worst-case budget exposure. Board members asked about implementation, consultant support, and past problems; Board Member Garcia revived an issue from earlier years about a missed IRS filing while the district was previously with ASBA. Staff told the board the vendor will provide implementation support and that consultants retained for the RFP process will remain involved, and that one ASBA contact is a former Cartwright employee who can assist with required filings.
After extended Q&A about claims trends, premiums, employee out-of-pocket impacts and continuity of ancillary benefits, the board voted to approve the ASBA insurance trust for medical coverage and directed staff to return with ancillary products (dental, vision, life) at a future meeting.
