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Committee recommends trimming actuarial increase to 16% as district and union share insurance risk
Summary
Facing large claim shortfalls, the insurance committee recommended lowering the district/employee contribution increase to 16% (below the actuary's 22%) and holding Rx formulary changes for one year to give employees time to consult providers. Officials cited a roughly $6.5M PPO deficit.
Staff member (S1) and committee members reviewed actuarial figures and recommended a shared‑risk approach to the district's self‑insured health plan. S1 summarized the plan shortfalls: "That 6,500,000 you see at the bottom... after employee premiums, after district premiums, the district had to fund out of the fund balance of the insurance another $6,500,000 to cover the claims for that plan only."
To reduce disruption, the committee proposed reducing the contribution increase from the actuary's recommended 22% to a 16% contribution and pursuing demand‑management measures. "We reduced that to 16% increase contribution," S1 said. Committee members also endorsed staging prescription‑drug changes by keeping Rx cost‑sharing at status quo for one year so employees can meet with providers before any formulary changes take effect.
