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District outlines 9.9% health insurance renewal with Mercy, recommends switching dental to Delta Dental; board to vote April 28
Summary
District staff told the board Mercy offered a negotiated 9.9% health insurance renewal that would raise district costs by about $1.2 million and estimated modest employee premium/deductible impacts; staff also recommended switching the dental plan from MetLife to Delta Dental (same plan design, broader network) and said the board will vote on renewals April 28.
District benefits staff presented detailed renewal options for health and dental insurance and recommended steps intended to limit disruption for employees while containing district costs.
Presenter (benefits) said Dean Health Plan will not renew its contract with the district because enrollment in Dean had fallen below plan thresholds. Administrators reviewed options and reported Mercy Health System as the practical sole carrier option for the district's HMO market; Mercy initially offered an 11.9% renewal and, after further negotiation, presented a 9.9% renewal. The presenter said the district's share of the renewal would add roughly $1.2 million in annual cost; employee impacts were described as modest examples (the presenter estimated roughly $4.14 extra per pay period for single coverage and about $12.50 extra per paycheck for family coverage under the proposed plan design and deductible changes).
The presenter said the district is keeping an HSA-eligible plan design (raising deductibles in line with IRS rules to preserve HSA eligibility) and explored alternatives such as a point-of-service plan and self-funding; staff concluded the district is not ready to self-fund this year (staff estimated self-funding would add about $3.1 million in cost). Mercy is working to expand network access and the district will work to ensure no gap in care for employees currently in active treatment plans.
On dental, staff recommended transitioning from MetLife to Delta Dental with the same plan design and a two-year rate guarantee. Delta Dental's proposal was presented as having a broader network (about 250 additional dentists compared with MetLife in the presenter's summary) and restoring an orthodontia benefit; staff estimated the change would save employees roughly $7,000 collectively and the district about $28,000 compared with an expected 5% MetLife renewal.
No final vote was taken Monday; trustees were told the board will vote on the health and dental renewals at its April 28 meeting. Staff said notification to employees will follow the vote and open enrollment is scheduled for May 10'0 through May 20, with new-enrollee communications by May 27.
