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Chesapeake projects 10% health-plan cost trend for 2027; employees may face higher premiums
Summary
Christina Warren presented a 2027 health-insurance update projecting a 10% medical-cost trend that would raise total plan costs toward $99.8 million and require premium adjustments effective Jan. 1, 2027. The union urged further negotiation and warned higher employee contributions would erode low-wage raises.
Christina Warren, Chesapeake Public Schools’ director of employee benefits and risk management, told the school board the division is projecting a 10% medical cost trend for 2027 that would bring total plan costs to roughly $99.8 million and require premium adjustments.
Warren said 77% of eligible employees currently select the Anthem HMO option and that the district analyzes claims-demographic trends with external actuaries. She identified cancer and musculoskeletal conditions as top cost drivers and noted net pharmacy claims of about $33.22 million in 2025. On the projection, Warren said, "For 2027, we are projecting a 10% trend, bringing total plan costs to approximately $99.8 million."
The presentation included per-employee cost examples: the annual HMO employee-only cost was shown at $13,642.80, with the district contributing $12,960.72 and the remaining employee share described in the model. Warren said premium-rate changes would take effect Jan. 1, 2027, with open enrollment in October.
Warren also proposed an enhanced dental option for 2027 that adds orthodontic coverage and raises the annual dental maximum from $1,250 to $2,000. The district historically covered 100% of employee-only dental premiums; rising claims and inflation prompted an adjusted cost-sharing presentation.
Union representative Caitlyn Rittnau, speaking for the Chesapeake Education Association, urged the board to negotiate further with Anthem and asked that any employee bonuses not be offset by premium increases. "It is difficult for your employees to stomach yet another increased cost," Rittnau said, noting the burden on lower-paid staff.
Warren said the benefits team will continue monitoring pharmacy trends (including GLP‑1 medications) and partner with Anthem on utilization controls such as prior authorization. The board was told the division will present retiree-plan information later in the summer and prepare for open enrollment this fall.
