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District recommends moving to single-carrier Mercy plan with a 9.9% renewal
Summary
The committee reviewed the 2026–27 benefits renewal and voted to forward a recommendation to the full board to renew with Mercy at a negotiated 9.9% increase (roughly $1.2 million district cost); Dean will not renew after failing to meet a 20% enrollment threshold.
Jamie Brown presented the Janesville School District’s recommended 2026–27 health insurance renewal, telling the committee the district should move from two carriers to a single carrier (Mercy) after Dean notified the district it would not renew due to low enrollment.
Brown said the district currently spends approximately $14.9 million on active staff coverage and about $1.3 million for retirees (roughly $16.2 million total). The initial renewal came in as high as 11.9% (about $1.49 million), but after negotiating with Mercy the final offer was 9.9%, which Brown estimated would increase district costs by roughly $1.2 million. To preserve Health Savings Account (HSA) eligibility, Brown said the plan’s deductible would increase (about $100 for single coverage and $200 for family coverage); employees would see varying premium impacts depending on prior carrier and plan choice.
Brown also described Mercy’s transition-of-care accommodations for members in active treatment and noted Mercy has formed a partnership with GHC in Madison to provide additional in‑network access for employees living in that area. The presenter said Dean enrollees should generally see lower premiums under Mercy while existing Mercy members would face smaller cumulative increases.
The administrative recommendation presented to the committee was to forward the Mercy renewal and the HDHP adjustments to the full board for approval. Committee members asked clarifying questions about negotiations and employee impacts; a motion to forward the recommendation to the full board was made and the transcript records the motion as passing unanimously.
Why it matters: Shifting to a single carrier and a near-10% renewal will affect district spending and employee out-of-pocket costs. The committee’s vote forwards the recommended plan to the full board, which must approve any final rate and plan changes.
Next steps: District staff will notify affected employees, finalize transition-of-care procedures, and present the renewal for formal board approval.
