Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Employee Benefits topic
No spam. Unsubscribe anytime.
Jefferson City school staff told district medical trust fell to $1.6 million; board approves plan and premium changes
Summary
District staff presented a plan to stabilize a declining self-funded medical trust, proposing premium and deductible increases and raising the district contribution per employee from $470 to $520 per month (an estimated $744,000 annual cost); the board approved the changes.
Sher Leage, the district's benefits presenter, told the Jefferson City School Board that the district's self-funded medical trust has declined from a 2019 high of $11.6 million to about $1.6 million as of February and recommended changes to stabilize reserves.
Leage said consultants advised the district to target roughly $6 million in reserves (about six months of expenses). She presented proposed premium rate increases across the district's three plans (HSA, base and buy plans), higher deductibles and maximum out-of-pocket amounts in some plan tiers, and an expanded telemedicine benefit for HSA members that would allow a $15 telemedicine copay without applying it to the deductible.
Key numbers Leage presented included the trust's 2019 peak (approximately $11.6 million), a reported shortfall of about $3.0 million in 2023'24 that reduced reserves to $5.7 million, and a fall to roughly $1.6 million by February. To help rebuild reserves, the district will raise its monthly contribution per employee from $470 to $520, a change Leage said will increase district costs by approximately $744,000 in the 2026'7 budget.
Leage summarized specific premium examples: employee-only HSA premiums would move from $10 to $20 per month; the base plan employee-only rate would rise from $60 to $110; and the buy plan employee-only rate would go from $105 to $169. She also outlined deductible increases (HSA individual deductible +$150; base plan individual deductible +$250; buy plan individual deductible to $1,000) and corresponding increases in maximum out-of-pocket levels.
Board members asked clarifying questions about which changes were driven by federal IRS adjustments (Leage said the annual HSA limits affect the HSA deductible) and about telemedicine usage. Leage confirmed open enrollment begins April 24 and that the new rates would take effect at reenrollment (effective July 1 for plan-year administration).
After discussion, the board took a voice vote to approve the proposed plan and rate changes as presented. The meeting record shows the motion passed. The board also approved related policy updates earlier in the meeting.
