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Consultants propose two‑plan option as Wilson County Schools faces multi‑million dollar insurance shortfall
Summary
Consultants from Gallagher presented two medical plan designs and projected claim‑cost savings; district staff reported a year‑to‑date insurance loss of $3,878,251 and warned that after transfers the effective loss approaches $6.9 million, prompting consideration of employee premium contributions and other plan design changes.
Rebecca Owens introduced Gallagher consultants to walk the board through two proposals for the district's self‑funded health plan. Will Finney, a Gallagher presenter, outlined a choice model for 2026: employees would be able to keep the current plan or select a new medical plan option with higher deductible and lower payroll premium. "If an employee wants the exact same plan, they could choose that for 2026 or a plan that would be essentially a new medical plan option," Finney said.
Wes, another consultant, compared the district plan with Tennessee's state options and warned of operational tradeoffs if the district left its self‑funded plan: "The state has a plan that's available, but that plan is the same plan for every district across the state... you don't have any input." Staff and consultants highlighted specific financial risks tied to retirees, run‑out claims and terminal liability if the self‑funded plan were closed.
Finance director Miss Baxley summarized the insurance fund's fiscal stress: "we're showing right now a loss of $3,878,251" year to date; with a $3,000,000 transfer from fund balance the cumulative shortfall through the year is closer to $6,878,000, she said. Gallagher presented model assumptions showing an estimated annual claim‑cost savings of roughly $698,000 if around 30% of employees choose the higher‑deductible option; consultants cautioned that savings depend on actual employee enrollment and administrative considerations such as audits and premium remittance if the state manages plans.
