The Brainerd School District may see about a 9 percent increase in health insurance premium costs next school year.
The district's Finance/Insurance Committee agreed Wednesday to recommend that the Brainerd School Board continue its contract with Blue Cross and Blue Shield of Minnesota. The current contract expires June 30.
The district called for quotes in February for the health insurance contract. Blue Cross/Blue Shield provides the district with its self-insured health plan. It also covers administrative responsibilities, such as claims and billings, stop loss protection, transplant coverage and provider savings.
Paul Pederson of Pederson/Beltz Associates of Eagan, the district's third party health insurance consultant, recommended that the district award Blue Cross/Blue Shield the contract. Blue Cross/Blue Shield's dropped its annual fixed cost fee from its current charge of $827,519 to $655,679 for next school year.
Currently the school district pays $350 a month for the single plan and $738 for the family plan for its health insurance premium share. Next school year, the district's contribution is subject to negotiation, said Brainerd School District Business Manager Steve Dickinson.
The monthly health insurance premiums are expected to increase by 9 percent on all three plans that Blue Cross/Blue Shield offers to the district. More than 90 percent of the employees are on the Triple Gold Plan, said Dickinson.
The total premium of the single Triple Gold Plan is $370 per month and will be about $403 per month next school year. The total premium of the family Triple Gold Plan is $887 per month and will be about $967 next school year.
Dickinson said if Blue Cross/Blue Shield did not reduce its annual fixed cost for next school year, the increase in premiums would have been closer to 12-13 percent.
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