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District outlines insurance changes, proposes higher-deductible option to ease classified-staff premiums
Summary
District staff presented a package of insurance changes including vendor consolidation, the end of certain voluntary products, and a proposed $4,000-deductible health plan intended to keep coverage affordable for classified employees; trustees asked for further analysis and a staff survey will guide final choices.
At the April meeting district staff walked trustees through proposed changes to voluntary and employer-paid insurance products and options for simplifying administration.
Staff said some voluntary products administered through existing vendors (including cancer and critical-illness plans, and certain voluntary vision options handled by Unum and PlanSource) will no longer be offered under the current group arrangement; employees were told they may be able to sign up directly with those vendors outside the district plan. The presenter said consolidating employer-paid life and AD&D coverage with one vendor (WEPT) could save the district approximately $3,000–$4,000 annually and simplify reconciliation problems the district experienced under the prior intermediary.
District staff discussed options to offer higher basic life/AD&D levels (for example, increasing coverage beyond the current $10,000 policy to $20,000 or $30,000) and estimated incremental costs (staff estimated a $3,400 annual cost to move to $20,000 for employer-paid coverage). The presenter said one employee’s individually paid American Fidelity product could be handled outside district payroll and that the district had discussed that option with the employee.
On health insurance, staff said districts had expressed concern that mandated state-rate increases would make some plans unaffordable for classified employees. In response, WEPT is offering a $4,000-deductible option that would match state rates and reduce premium increases for some employees; staff said the district will continue to offer other deductible levels (including $1,500, $2,500 and $3,500) and is surveying employees to determine preferences. Staff also said it will look into whether high-deductible plans would be HSA-eligible and consult local banks about HSA options.
Trustees did not take a final vote; staff said open enrollment will occur in May and that they will return with recommendations and more detailed cost comparisons at a future meeting. “Our idea was to simplify the process,” the presenter said, adding that the district hopes to eventually offer higher employer-paid life coverage if budgets allow.
