Board previews vote to join Delaware County healthcare trust in Sept.; administrators cite stop‑loss savings

The board heard an update on a proposal to join the Delaware County Public School Healthcare Trust beginning Jan. 1, 2027, intended to reduce volatility and financial risk from the district’s self-insured medical and prescription program.

Finance presenter Mr. Dadey said the trust showed a fund balance equal to 44% of operating expenses as of its 6/30/2025 audit and noted that all districts in the trust reported positive surpluses in the cited audit. He summarized stop-loss arrangements and estimated the district’s current annual stop-loss premium would be about $809,000; the trust’s purchasing terms are expected to lower that district cost to between $625,000 and $675,000, producing an estimated savings of $134,000–$184,000 depending on employee counts and the prorated transition year. "There is a 3 year commitment to join the trust," Dadey said, adding that the commitment is measured in plan years, which will make the district’s first participation effectively 3.5 plan years because of a January start.

Dadey told the board the trust typically works with a third-party administrator to help districts build a responsible fund balance, often layering a 1%–2% premium addition in the first three years. He also noted that the transition timing means administration intends to present a voting item in September so the district can begin on Jan. 1, 2027. Board members asked clarifying questions about fund-balance targets, the mechanics of the stop-loss procurement and how savings will be reflected in next year’s budget; Dadey said final premium figures will be set when employee counts and plan details are known and that the September agenda will include the formal motion for board consideration.

No vote was taken at the work session; administration asked that the board consider the item as a formal voting item at the September meeting.