Montgomery Independent School District trustees heard a detailed briefing March 18 on employee health benefits that showed rising claims and the potential for sizable premium increases when the district negotiates a renewal.

John Ledbetter, benefits consultant with Higginbotham, told trustees that enrollment and claims trends have produced elevated loss ratios since the district moved to Blue Cross Blue Shield. “Last year the loss ratio was 127%,” Ledbetter said, adding that Blue Cross had sought a 35% increase before the district negotiated a 10.5% rate-cap provision.

The presentation covered enrollment (about 804 medical subscribers and roughly 1,300–1,400 total members including dependents), claims distribution and high-cost claimants, specialty drug trends, and network disruption risks for local providers. Ledbetter recommended the district go out to bid to invite competing carriers — UnitedHealthcare, Cigna and others — and to consider two‑year rate guarantees as one tool to cap exposure.

Trustees pressed for local provider network information and for comparisons of bids, and staff said a provider disruption report would be required in proposals so carriers can show how their networks would serve local ZIP codes. Human resources staff said they will provide a provider report for local and neighboring ZIP codes during the enrollment review.

Board members asked about the district’s next opportunity to return to TRS (the Teacher Retirement System/State pool). Consultants said the district’s current contract timeline generally prevents an immediate return; they noted pending legislation (cited in the meeting as Senate Bill 2911 / House Bill 29x in discussion) that could change eligibility dates if passed.

Trustees were warned that market renewals could be in the 20–35% range in initial proposals depending on vendor offers and the district’s loss history, but consultants said competitive bids sometimes produce lower multi‑year guarantees and concessions. The district’s consultant and HR staff said they will run a full procurement and return market results to the board for decision.