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Fairfield Union Local board approves FY27 insurance rate changes, two premium “holidays” to soften impact
Summary
The Fairfield Union Local Board of Education approved FY27 medical, dental and vision insurance renewals that raise plan costs (plan A by roughly 30–35%, plan B by about 20%). The board agreed to two employer-funded premium "holidays" and to use part of the district's reserve fund to reduce the immediate burden on employees.
The Fairfield Union Local Board of Education voted to approve FY27 insurance rates and provider renewals after a detailed presentation and discussion about rising medical costs and stop-loss claims.
Treasurer Mister Roberts told the board the district needs about $6.1 million to fund next year's insurance plans and recommended a package combining premium increases with two employer-funded premium "holidays" to soften the short-term impact on employees. "We are proposing you give two premium holidays," Mister Roberts said, explaining the district's medical fund (referred to in the meeting as the 0-2-4 fund) would absorb those months' cost. He said the fund balance is roughly $4,000,000 and the premium-holiday approach would use about $1,100,000 (approximately 30% of that fund), leaving an approximate balance near $2,800,000.
Why it matters: plan A was presented as increasing by roughly 30—35% and plan B by about 20%. Administrators said the two premium-holiday months (proposed in October and December) would reduce employees' out-of-pocket increases for the first year by about $1,000,000 collectively, giving staff time to adjust ahead of a likely additional increase the following year.
Mister Roberts reviewed plan performance through April and said high individual claims had driven the plan into a deficit position before stop-loss reimbursements. He noted stop-loss protection had limited extreme exposure but that the district still faces elevated renewals: "Plan A has cost the district $1,000,000 ... plan B is costing the district $5,000,000," he said in the presentation, summarizing the actuarial picture used to set the recommended funding level.
Administrators described options considered, including alternative vendors and carrying aggregate stop-loss coverage, but said running the numbers showed the premium-holiday approach plus the use of reserves best balances employee impact and plan solvency in the short term. Superintendent Mister Bilbo said the arrangement with Ohio State for sports medicine (discussed elsewhere on the agenda) and other negotiated supports are part of the district's approach to manage personnel and program costs.
The board voted to approve the insurance rates and providers for FY27 by roll call. Additional insurance contract renewals approved in subsequent motions included a one-year Delta Dental renewal (premiums flat), a two-year VSP vision renewal (small PEPM increase), an Equitable Life renewal (minor per-$1,000 rate change), and a one-year UHC COBRA servicing renewal (PEPM servicing fee increase). Administrators noted UHC manages COBRA and that COBRA participants still pay 100% of premiums plus the servicing fee.
Next steps: administrators said they will communicate details to staff by email and one-on-one scenarios as needed during open enrollment. The board approved the package and asked staff to continue monitoring claims and market conditions ahead of next year's renewals.
