Rep. Reyer moves survey of district health plans to study rising K–12 insurance costs

Rep. Reyer presented House File 10 49 (as amended) to the House Tax Committee on March 12, directing the Legislative Budget Office to gather district-level information on employee health insurance plans, enrollments and financials to better understand the effect of rising costs on staffing and budgets.

The author said escalating health insurance costs are a primary factor in staff shortages and described teacher premium increases and district budget pressures. Nine out of 10 schools, she said, face staffing shortages and many districts are seeing major premium spikes. "This bill will help the legislature understand the statewide impact health insurance increases are having on school district budgets," Rep. Reyer said.

Three education employees gave lived-experience testimony. Angela Forlan, a language-arts teacher in Kingsland, described how small rural districts face higher premiums and limited carrier options; Katina Taylor, president of the Minneapolis Federation of Educators ESP chapter, described educational support professionals who cannot afford offered plans; and Lori Goff, a paraeducator, described a family medical case where insurance did not cover prescribed medications and recounted working multiple jobs to afford care. Witnesses told the committee that districts already maintain most of the data and that the bill asks for consistent statewide reporting rather than creating new reporting systems.

Members asked whether the survey would capture benefit design and high-cost drivers such as specialty drugs; the author said the bill does include plan design elements, in‑network deductibles and out‑of‑pocket limits. Rep. Reyer moved that House File 10 49 be laid over for possible inclusion in the omnibus tax bill; the committee agreed.

Next steps: HF 10 49 was laid over for possible inclusion; staff and the Legislative Budget Office were asked to prepare the survey approach and fiscal implications.

Speakers quoted or paraphrased in this article are listed in the committee record.