Willis ISD says health‑insurance claims rising; staff propose premium increases to narrow projected deficit

At the May 13 board meeting, district staff reviewed the status of Willis ISD’s self‑funded health insurance plan and outlined a strategy for addressing a multi‑hundred‑thousand‑dollar projected deficit.

Staff presented recent trends showing rising claims and said the current projection for the 2025–26 plan year is a deficit in the range of $500,000 to $700,000. The district reported investing about $450 per employee per month (approximately $5,400 per year per employee); with current enrollment figures, that investment totals roughly $4.6 million. A supplemental 'next level' program was described as adding about $488,000 to the district’s health‑plan investment, bringing the combined figure to about $5.1 million.

To address the gap, staff described a two‑pronged approach: cost containment and cost sharing. Suggested cost‐containment steps include changes to pharmacy formularies, a targeted program to manage outpatient claims, and a stop‑loss bid strategy. The district plans to pilot an outpatient‑management program this summer.

On the revenue side, staff proposed premium increases and modest plan‑design adjustments for 2026–27 that the presentation estimated would yield roughly $564,000 in additional contributions based on current employee counts. Staff said the combined effect of premium increases and cost‑control measures could narrow an $800,000 shortfall to nearer $600,000 depending on enrollment and claim activity.

Board members asked about timing and when final budget figures will be available for renewal decisions; staff said renewals are not yet final and that the board could take final action after receiving vendor renewals and firm numbers.

The discussion will feed into summer budgeting and a final health‑plan renewal expected before the July renewal deadline.