Insurance committee recommends plan changes to limit premium spike; labor votes to follow
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Summary
The district's insurance committee recommended raising employee deductibles and adding a 15% coinsurance up to the out-of-pocket maximum, a change the committee estimates would lower a projected 20% premium increase to about 8%; labor unions will review the proposal and plan to vote before the board acts.
Treasurer TJ Cusick told the Worthington Schools Board of Education that the district's insurance committee met Aug. 12 and recommended a plan design change that increases employee deductibles and adds a 15% coinsurance beyond the deductible up to the out-of-pocket maximum. The committee's modeling reduced a projected premium increase of roughly 20% down to an estimated 8% under the recommended option.
Cusick said the district's consultant has met with labor unions and that union votes on the proposed changes are expected in September; if the unions ratify the change, the item will come to the board the following Monday. He described the committee's work as a balance between increasing employee responsibility and capping maximum exposure for employees who meet their deductible.
Discussion vs. decision: the committee recommended a plan design change; labor union votes are pending and the board has not yet taken action. Direction: the consultant will continue negotiations with unions and will return to the board with any ratified agreement.
Why it matters: changes affect employee out-of-pocket costs and district premium exposure and could change plan affordability for staff and budget projections for the district.