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Board weighs Anthem deductible increases against joining Local Choice as health-insurance costs rise
Summary
Facing a projected ~28% increase in health-insurance costs staff presented two paths: remain with Anthem but raise employee deductibles (proposed $1,000 single / $2,000 family) to save ~$600,000, or move to the Local Choice (TLC) pool which offers smaller immediate savings but could impose an exit penalty (~$1.2M); staff sought board direction and public input was scheduled.
Petersburg City Public Schools staff asked the board for guidance on how to manage a sharp projected increase in health-insurance costs for FY27.
Administrators told the board the division will absorb the roughly 28% increase for the coming year but warned that continuing to absorb sharply rising premiums is not sustainable long term. Staff presented two options developed with consultant analysis: (1) move plans into the Local Choice (TLC) pool, which their analysis estimated would produce approximately $200,000 in immediate savings but could carry an exit penalty estimated at about $1.2 million; or (2) remain with Anthem and raise employee deductibles (staff proposed increasing single deductibles to $1,000 and family deductibles to $2,000), which staff estimated could save roughly $600,000 annually.
"We have to make some adjustments — we either need to join TLC so that we can continue to absorb or we need to adjust the deductibles," Dr. Greywood said, explaining the tradeoffs. Board members stressed the importance of employee input before a final decision; the administration scheduled a public-hearing opportunity and an employee feedback mechanism prior to final action.
Board members also noted that the Commonwealth’s employee deductibles are higher (as presented to board staff) and that other localities have already raised deductibles. Several board members expressed support for keeping Anthem while modestly increasing deductibles, but the board did not take a final vote in the session; staff said they will bring employee feedback and final analysis back for a decision before the budget is finalized.
