District staff recommend renewing medical plan with Sigma and ask board to raise monthly contribution

At an April work session, district benefits staff recommended renewing the Blue Springs R-IV school district's self-insured medical plan with incumbent vendor Sigma and asked the board to increase the district contribution to $900 per employee per month.

The presenter, identified in the meeting as Sean, said the district's self-insured medical plan covers about 1,900 members and includes an embedded deductible designed to protect families. Sean reported a 10.2% increase in per-member-per-year costs over the last 12 months, driven largely by prescription spending (now about 37% of plan costs) and new high-cost specialty drugs and biologics. He said the IRS-mandated increase to HSA-eligibility deductibles (a $100 increase for individuals and $200 for families) must be implemented for the 2026'27 plan year.

"We do recommend renewing with Sigma," Sean said, adding that Sigma offered a lower ASO fee and better projected consortium savings than the competing proposal. He described Sigma's proposal as producing direct per-employee savings in the ASO fee and said the consortium's collective savings would be substantially greater than switching vendors.

Sean proposed no plan-design changes this year other than the required deductible adjustment. To help offset rising costs, staff requested the board increase its monthly contribution to $900 (a $75 increase per employee). Sean said that contribution change would increase plan funding by roughly $1.5 million but translate to about a $1.1 million increase in the district's budget lines after accounting for retirement, Medicare and Social Security effects; he noted retirees would be affected by the premium change.

Board members asked whether the $75 increase would close the 10.2% trend. Sean replied the increase would help but "does not get us to zero," and described trade-offs between raising plan funding and changing benefit design.

Sean also recommended using reserves to hold dental premiums steady this year and described a proposal to add an employee legal plan to fill gaps (trusts and wills). He said open enrollment would follow board approval and run through May 8, with the new benefit year beginning July 1.

The work session discussion will move to the board's regular meeting for formal action. If the board approves the recommendation, staff said they would run open enrollment immediately and implement changes on July 1.