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Insurance premiums expected to rise about 7%; committee recommends returning to prior plan design
Summary
The committee was told an approximate 7% increase in insurance premiums is expected for FY26, driven mainly by prescription drug costs; the committee recommended reverting to a 2-tier copay and adjusting deductible levels with an optional buy-down program.
Mike McMahon told the Finance Committee the district is facing roughly a 7% increase in insurance costs for FY26, largely driven by prescription drug expenses.
McMahon said the committee plans to revert from the current three-tier copay system to a two-tier system to reduce confusion, and recommended changing to a $3,000 individual deductible with a $6,000 family maximum; with a buy-down option the effective plan would be a $1,000 individual deductible and $5,500 family maximum. "The biggest driver of premiums is prescription drugs," the minutes record states.
The committee agreed the insurance committee's recommendation was to return to the prior service model to limit disruption and confusion for employees.
