Ajo Unified District moves employee coverage from UnitedHealthcare to MetLife, administration cites multi‑year savings

District administrators reported to the board that, after review with the district’s insurance broker and finance consultant, they recommended switching the district’s employee medical carrier from UnitedHealthcare to MetLife to avoid a projected 34% premium increase from the incumbent carrier.

Administrators and the district finance consultant shared figures showing the UnitedHealthcare increase would have added about $142,786 (a total projected premium of roughly $564,000), and that moving to MetLife is expected to reduce the district’s annual cost to an amount reported in the presentation (administration stated an annual cost of approximately $355,000 for the 2016 school year in the presentation transcription; staff described a $67,000 annual savings and additional prorated administrative credits, up to about $20,400 total, that could further offset costs). The presenters said the change could generate a rollover into contingency reserves of approximately $87,400 for 2027–28 as a buffer against future medical cost increases.

Board members asked about potential changes to provider networks and whether employees would retain similar coverage tiers (bronze, silver, gold); staff said they had performed side‑by‑side comparisons and believed coverage was substantially similar but said they would confirm provider access and specific network differences. The administration committed to follow up with the broker to confirm details where vendors differ.

No formal action specifically approving the carrier change was recorded as a separate vote in the meeting minutes transcript beyond listed consent items; the item was presented as an administrative recommendation during the consent/report portion of the agenda.

Next steps: staff said they would confirm provider‑network continuity and report back to the board with any differences that could affect employees.