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District warns of steep medical-insurance renewal after RFP; Blue Cross proposal near 59% increase
Summary
Staff told trustees Blue Cross Blue Shield was the only RFP respondent and proposed a renewal increase of about 59%, while the district’s loss ratio with its current plan was reported at roughly 157%, raising concern that employees could face large premium increases unless the district increases its contribution or negotiates plan designs.
During the budget workshop, staff said the district issued an RFP for medical insurance and received a single renewal proposal from Blue Cross Blue Shield that included a large renewal increase. Staff reported a current loss ratio of about 157% for the district’s Blue Cross plan and said Blue Cross’s renewal proposal estimated a near-59% increase in cost.
"Our insurance carrier is currently Blue Cross Blue Shield. And we're currently at a loss ratio of a 157," staff said, adding that Blue Cross submitted a proposal with a "renewal increase of 59%." Presenters warned trustees that, absent changes to district contribution or plan design, employees would likely absorb most of any premium jump.
Board members and staff discussed alternatives: continuing negotiations with Blue Cross, adjusting plan design, increasing the district contribution to limit employee pain, or exploring re-entry into TRS ActiveCare in future years to spread risk across a larger pool. Staff said around 320 employees (about 55% of roughly 560 employees) currently participate in the district medical plan, and estimated a $95,000 annual cost to raise the district contribution by $25 per month across participating employees.
Trustees asked staff to continue negotiations and report updated insurance-cost scenarios as the budget process continues.
