Nancy Bolton, the director of risk and benefits management, presented crucial data on the district’s healthcare performance, highlighting a projected shortfall for plan year 2024 between $54 million and $59 million. Despite a $3 million decrease in the forecasted shortfall for March, concerns remained for 2025. Bolton outlined the healthcare plan’s financial trajectory, emphasizing the need for strategic changes to manage a balanced split of cost increases between the district and its employees.

Bolton discussed rate change options, comparing different scenarios and their implications for the district’s finances and its employees. The analysis encompassed cost trends over the past five years, including prescription drug costs, medical claims, and enrollment patterns. The data from United, the healthcare provider, pinpointed cost drivers such as inpatient admissions and emergency room visits.

The meeting also featured a presentation by Jordan Tares, CEO of People One Health, who proposed a paradigm shift in healthcare delivery. Tares outlined a community-based health center model that would offer unlimited access to primary care, longer appointment times, and comprehensive health services without additional costs to members. The model emphasized preventive care and aimed to incentivize wellness over volume of care.

The board engaged in a debate on the practicality and financial implications of the proposed health centers. Tares addressed logistical concerns, explaining the strategy to establish facilities based on the geographical distribution of plan members. The discussion examined the model’s alignment with the board’s objectives and its potential to curb future healthcare cost increases.

Another presentation involved a concierge healthcare model presented by a representative from People on Health. This model aimed to eliminate financial barriers to healthcare services, covering all needs, including CPAP machines, without co-payments or deductibles. The model promised potential savings for the plan and its members, based on varying levels of engagement. The board considered the need to assess member interest and discussed the possible impact on plan expenses, focusing on the voluntary nature of the model and its potential benefits.

The potential implementation of a new healthcare program was a subject of considerable debate, especially regarding the decision-making process and the need for employee engagement. The board contemplated using surveys to measure employee interest and emphasized the importance of clear communication and education about the program’s benefits. Geographic distribution of services and contract terms with healthcare providers were also topics of discussion.

Additionally, the board discussed healthcare partnerships and salary negotiations for employees. A multi-employer healthcare partnership proposal, which included a performance guarantee, was presented to the board. The partnership’s potential to provide a collaborative solution for managing healthcare costs was of interest to the board, which sought further details on existing clients and operations. Concurrently, the board engaged in discussions about the budget for teacher compensation, specifically the allocation for salary raises. Opinions differed on the timing of negotiations, leading to the scheduling of additional sessions in May to further these discussions.