The Washington County School District board on April 23 approved changes to employee health-plan design and district contributions that the insurance committee said are intended to steer employees toward lower-cost, high-deductible coverage and to protect the district’s self-funded reserves.

The board adopted the insurance committee’s recommendation to use a 3-tier plan for the 2018–19 plan year, with an intent to move to a 5-tier design in a later year. For plan funding the board approved a district contribution target of 96.5% of employer cost for the Qualified High Deductible plan and 88% for the traditional plan, and it directed that every plan option carry an employee premium (no free high-deductible option). The board also approved a $20-per-month district match into employee health savings accounts (HSAs) above the employer’s initial contribution, contingent on available funds and migration.

Why it matters: District leaders said shifting enrollment to a consumer-driven high-deductible product could reduce long-term utilization and plan cost, while one-time flexible state dollars and a startup reserve will provide a buffer while the self-funded pool stabilizes. The changes affect hundreds of employees who enroll in district coverage and could change monthly premiums and out-of-pocket exposure for families.

Board and committee discussion focused on how to fund the shift and how quickly to change plan design. District staff and the insurance consultant presented spreadsheets showing multiple scenarios and the budget impact of several contribution levels. Committee members debated whether to implement a 5-tier structure now (which adds separate spouse and child pricing) or to phase it in. Several committee members warned that a large, immediate difference between the high-deductible and traditional premiums could prompt strong employee backlash without extensive education.

Funding and safeguards: Committee members and staff outlined a proposal to use the state’s flexible allocation — approximately $3,000,000 in one-time/placeholder funding tied to recent legislative action — to support the change. The working allocation the committee discussed would split that flexible allocation roughly into three uses: about $1,000,000 counted as ongoing support for insurance contributions, $1,000,000 as a reserve for the newly self-funded plan to cover early-year utilization risk, and about $1,000,000 as one-time money for start-up programs (clinics, utilization-reduction pilots and other initiatives) intended to reduce long-term costs.

Design specifics discussed in the meeting included: an initial district contribution into accounts (presentations showed a $950 employer-side starter amount in some scenarios), projected employee monthly premium examples (presenters showed sample figures such as about $68 monthly for a family on a high-deductible option versus $223 for family coverage on the traditional plan in one scenario), and pharmacy co-pay structures. Staff cautioned that those figures depend on how many employees switch plans during open enrollment and on actual claim experience after the district moves to a self-funded model.

Committee recommendation and board action: The insurance committee met during the working session and—after extended discussion—voted to recommend continuing with a 3-tier model this year and to pursue a 5-tier design later. The board then acted on the committee’s recommendation and on a package of funding and design choices. The board motion, moved by Craig and seconded by Terry, approved the committee’s recommendation and the contribution targets (96.5% employer contribution for the high-deductible plan; 88% for the traditional plan), required employee premiums for all plan options (no fully free option), and authorized a $20-per-month HSA match (to be triggered if employees contribute and subject to available funds and migration effects). The board approved the motion in a recorded vote.

Next steps and implementation: District staff will finalize plan language, confirm Regions (the district’s administrator) pricing under the selected design and return precise premium and savings estimates to the board. Staff and committee members emphasized the need for a substantial employee education effort during open enrollment so employees can compare total cost and out-of-pocket exposure under each option. Committee members suggested dedicating some one-time funding to on-site education and to pilot programs intended to lower utilization.

The board’s action is limited to approving the plan design and the funding approach outlined at the meeting; staff stressed that exact premiums and a final implementation timeline will be published after actuarial pricing is finalized and after any negotiated changes are incorporated.

Ending: District staff said they will post details and updated premium worksheets after Regions completes the final pricing, and the board asked the insurance committee to present an education plan for employees before open enrollment.