Committee readies Exhibit C and $40M cash‑flow option for school health-plan vote

The St. Charles Parish Risk Management & Insurance Committee on Jan. 23 reviewed multiple options for renewing employee health coverage and directed staff and broker USI to prepare plan-change materials for the full board’s consideration. Committee members said they want Exhibit C — which preserves much of the high-option plan while increasing emergency-room copays and lowering urgent-care copays — and premium-equivalent scenarios (C1–C3) circulated in advance of Wednesday’s board meeting.

USI presented the district’s financials, walking the committee through historical costs since the district moved to self-funding, how premium equivalents are derived from expected claims, and how prescription‑drug rebates affect budgeting. Mr. Babin of USI summarized the projection work and told members the district’s expected premium-equivalent cost for 2026 is in the mid‑$30 million range; administrators said the district’s cash‑flow budget is being set near $40 million because rebate timing is uncertain. "So the board has to be prepared to spend that money until that rebate comes and we don't know the exact amount," a district presenter said.

USI’s underwriting team described stop‑loss protections and worst‑case exposure. "Maximum claims for us on our renewals [are] approximately 45.5 million … add back in fixed cost which is right around 3 million. So the ceiling is 49 million," a USI underwriter said, adding the chance of reaching that ceiling is low given the plan’s size.

Committee discussion focused on where to place the increase between plan design and employee contributions. USI ran three scenarios: C1 (splits increases so the projected needed increase falls to about 9.9%), C2 (passes a larger share to employees), and C3 (passes most of the increase to employees). Board members debated sticker shock versus equity across plan tiers and several urged setting a consistent employee contribution percentage for comparable tiers so one plan does not indirectly subsidize another.

Administrators also reviewed administrative-service fees (ASO) and programs included in the renewal and said quarterly committee updates will include program performance measures (maternity care, condition management, telehealth). The committee asked that USI finalize the premium-equivalent rates both with and without the anticipated rebates and send the materials to board members before Wednesday’s vote.

Retiree premium changes were discussed in tandem: staff said current retiree rates are governed by board policy 4.6.13 (revised Dec. 10, 2025), which constrains immediate retiree‑side rate changes this plan year; staff promised a policy revision and revised retiree rates for plan-year 2027/28. No final vote on benefits was taken at the committee meeting; committee members said they will present Exhibit C and the premium-equivalent scenarios for a full-board vote on Wednesday.