Board renews district self-insured plan with Blue Cross; premiums to rise 13%

Stillwater Area Public Schools trustees voted to renew the district's self-insured health plan with incumbent Blue Cross Blue Shield and to accept a proposed 13% increase in overall premium rates, district staff reported.

Human-resources supervisor Ashley Jang and a district benefits representative explained the district is required under the HIDA procurement statute to solicit bids; this year four carriers submitted proposals and the district's insurance committee unanimously recommended retaining Blue Cross Blue Shield to minimize disruption to employees and retirees. "Staying with Blue Cross Blue Shield meant that it minimized the disruption that would have been felt for our staff and our retirees," the presenter said.

Because the district is self-insured, staff said premiums are set by the district's projected claims and risk, not solely by carrier pricing. Facing increased claims, staff recommended a 13% premium increase and noted the district will apply a 6.5/1 employer/employee split to the adjusted premium schedule. Board discussion clarified that single-coverage employees, who previously had no monthly payroll deduction, will now pay a monthly premium; a board member noted in the meeting that single-coverage employees will see a roughly $60 monthly deduction under the proposed rates.

The board approved the recommendation by voice vote. Staff said the insurance committee included representation from employee groups and that the renewal follows a months-long evaluation process.