WESLACO ISD faces $5–7M insurance shortfall; committee recommends plan redesign and RFP

District health‑benefits staff presented modeling showing claims and trends that could produce a $5–7 million deficit for the current policy year and a projected 2026–27 spend near $29.9 million if no changes are made. The presentation compared current plans (three PPO tiers) with alternatives (adding an HMO, HSA options or combinations) and estimated how plan-design moves might reduce the gap.

The employee-benefits committee ranked an option combining an HMO, a PPO and a PPO buy‑up as the preferred path; modeling showed that adopting a set of design changes could reduce the projected shortfall and lower the necessary price increase to roughly 17% rather than the 31% increase the district would face if no changes were made. Presenters emphasized the tradeoffs — narrower networks for HMOs, less flexibility for employees, and possible impacts on access — but noted examples of neighboring districts that use HMO/PPO mixes.

Staff also outlined a vendor engagement and RFP timeline: presentations by broker partners on March 23 and March 30 and an RFP window April 1–22. Trustees asked for more detail on projected employee impacts, sample premium changes, and the committee’s rationale; staff said they would return with detailed cost splits and options for board consideration ahead of any final RFP or benefit redesign.