A contentious debate over the district's benefits administration contract concluded Dec. 9 with the Marion County School Board approving a three-year agreement with Gallagher for consulting, actuarial and third-party administration services, with one board member dissenting.

Dr. Lisonbee Campbell, Board Member for District 1, pressed staff and counsel for a deeper review of the fees and commission structure associated with Gallagher's services. "What I would like to recommend ... is that we do a 1 year renewal with no increase over prior year," Dr. Campbell said, urging the board to revert to last year's per-member rate of $4.75 rather than the proposed $4.90. She said the board had seen a marked rise in the contract figures since 2020 and requested more time for analysis and comparisons to other local municipalities.

School board attorney Jeremy Powers explained the board's options for amendment. "Provided that the parties are amenable, it wouldn't be a very difficult change to make," Powers said, noting that staff could negotiate changes and bring an amended contract back for the board if Gallagher agrees.

Benefits staff and Gallagher representatives defended the recommended approach and described the contract structure. District benefits staff explained the agreement is a third-party administrator arrangement and that employee coverage will continue without lapse in January if the contract is approved. A district representative summarized the cost drivers as growth in employee enrollment and increased wages that change per-member amounts. One benefits representative said Gallagher is paid on a per-member-per-month compensation and that commission schedules are negotiated in carrier contracts, not paid directly out of the district's general fund.

After discussion, the board voted to approve the three-year agreement for up to $490,000. The final tally recorded four members in favor and one opposing vote; Dr. Campbell cast the dissent. Board members said they expect staff to continue a deep review of the agreement's terms during the contract period and to pursue possible cost-savings opportunities.

What this means: The district retains a third-party administrator for benefits oversight and actuarial work while board members indicated they will examine contract terms and options during the coming year.