Nancy Bolton led the presentation, which delved into plan performance as of June 30th, rate projection updates, and a review of the district’s rate proposal aimed at addressing projected funding deficits for the plan year 2025. The district suggested a 50-50 split to cover projected premiums, with June claims totaling approximately $20 million—a figure described as average for that time of year. The waiting period for July data was also discussed, as it would provide further clarity on trends moving forward.

The discussion revealed that the previous year had seen a $29 million loss for plan year 2024, contributing to ongoing financial challenges. To achieve break-even status, an additional $212 per month per employee in contributions was deemed necessary. The last counteroffer proposed a shared increase, with employees contributing $106 per month, or $53 per paycheck.

Questions arose about comparisons with other school districts, noting that Broward County faced similar cost increases while Orange County had adjusted their rates post-agreement. Clarification was provided that the rates discussed were current, not projections for the future. The nature of insurance arrangements among districts was examined, with some being fully insured and others self-insured. It was noted that self-insurance had historically provided cost benefits during years of low claims, whereas remaining fully insured could lead to consistent increases in premiums.

The financial viability of the health care plan remained the overarching concern, with implications for salary increases. It was articulated that funds available for salary and benefits were limited, meaning any increase in benefits would directly impact the budget for employee raises. There was a sense of urgency to resolve current issues to prevent recurring financial strains and difficult negotiations in the future.

Additionally, the meeting addressed a public records request initiated by the Palm Beach Association (PBA) concerning negotiations and the actuarial report the district uses. There was concern over the lack of access to this critical information, necessary for informed decision-making. One participant inquired about the availability of the actuarial report, only to find that the report is not extensive and primarily outlines actuarial assumptions and forecasts.

The discussion differentiated between the actuarial report and monthly claims reports provided since May 2022. These monthly reports contain substantial data, including breakdowns of claims by various categories such as active employees, retirees, and specific health plans. However, limitations exist due to privacy concerns under HIPAA regulations, which prevent the sharing of individual employee claims data.

The status of retirees within the health plan was also discussed. Retirees aged 65 and older are transitioned to a School District Consortium Medicare Supplement Plan, impacting overall claims data. Approximately 500 retirees are enrolled at any given time, a fraction of the total membership in the health plan. Questions were raised about how claims from retirees who leave the district are recorded, particularly if their coverage ends upon departure. It was confirmed that once an employee leaves, they are no longer counted in the claims data unless they opt for COBRA coverage, maintaining their insurance temporarily by paying premiums.

Further clarity was requested on the reporting of claims and premiums related to retirees, as this is important for understanding the financial implications of the health plan. There was an expressed desire to receive comprehensive documentation produced by the actuary in its original format to ensure transparency.

The need for further meetings was underscored, with a call for scheduling another session to continue discussions and negotiations. It was noted that almost two months had passed since the last meeting and that reaching a negotiated agreement was a priority, especially as the deadline for negotiations approached. The possibility of a two-year agreement was proposed to mitigate future uncertainties and allow for more stability within the planning cycle.