Germantown committee recommends keeping 2026 self‑funded health plan; district to absorb dental rate increase

The Germantown School District finance committee on Tuesday recommended that the full school board approve the district's proposed 2026 health and vision benefits and an enhancement to dental coverage.

The committee heard a presentation from an R and R consultant explaining that national medical trend is being driven by catastrophic claims and specialty prescriptions, but that Germantown's move to a self‑funded model, a Nexus network of preferred providers and a new pharmacy benefit manager strategy have helped contain costs. The consultant said the district is not asking staff or members to change medical elections for 2026: "So we aren't looking at people having to make any changes," the presenter said.

On dental, the consultant reported a plan loss ratio of about 115% in 2025 and recommended adding a "Checkup Plus" feature (routine cleanings do not count against the annual maximum) and a 5.5% increase to dental rates to sustain improved benefits. The recommendation was that the district absorb the district portion of the dental increase while holding employee medical rates steady for the coming year.

Committee discussion focused on plan design details and the financial impact of self‑funding. Board member Russ cited a per‑employee projection of roughly $24,001 for the district under self‑funding versus an estimated fully insured cost exceeding $33,000, noting that the difference frees funds for classroom priorities.

Committee member S3 moved to recommend that the full board approve the proposed UMR options for medical administration and the Delta Dental and EyeMed coverages for the 2026 plan year, including the Checkup Plus enhancement and with the district covering the associated dental cost increase; the motion was seconded and carried in a voice vote with no roll‑call recorded.

The item will appear on the next full‑board agenda for final approval.