Health Insurance Premiums Rising for Westport Schools
WESTPORT – The Westport school board met on Friday to discuss rising health insurance premiums, which are expected to increase by as much as 15% for the next school year. During the meeting, it was noted that there might be less expensive alternatives, though these could bring about greater risks and put additional pressure on school district employees.
District CFO Elio Longo emphasized the need for solid data, stating, “We need convincing numbers,” highlighting concerns about whether the benefits of alternatives could outweigh their associated risks.
Chairman Lee Goldstein expressed skepticism about making any changes for the 2026-27 financial year, stating it’s a longer process that requires involvement from a committee comprising both town and school officials and support from the district union.
Time is of the essence, as decisions impacting the upcoming budget must be finalized soon. The board is looking at Superintendent Thomas Scalise’s proposal for a $158.9 million budget for the next fiscal year, representing a 5.4% increase over the current year, primarily driven by expected medical costs. Projected medical expenses under the state partnership plan are slated to rise by 15% starting in July, with potential adjustments based on more concrete rates to be established in March.
Exploring Options
The board is weighing whether a separate plan or a self-insured model would be more beneficial. Analysts Addie Gaines and Gillian Ritter from Lockton Companies LLC pointed out that the comparison is quite complex and difficult to navigate. The projected 15% increase under the state plan could vary, presenting scenarios of between 6.9% and 19.3% increases. Each choice carries risks and may lead to changes that could make them less appealing and more costly.
Lockton’s officials cautioned that savings might not be sufficient to warrant a shift. The district has been participating in the state plan for the 2024-25 school year, marking its second year, with the 2026-2027 fiscal year anticipated to be the third.
The state’s plan offers a lock-in rate with a focus on preventive care and wellness, and Longo mentioned that sometimes, the state subsidizes it. According to Lockton, models based on self-funding might have lower initial costs, but could lead to higher expenses down the road. Already, the district has seen healthcare claims in the first quarter that exceed projections significantly, raising concerns.
Two private insurers, Anthem and Cigna, have also provided estimates. Anthem predicts a 19.3% increase compared to current costs, while Cigna, with a plan design akin to a self-insured model, is estimating an 11.1% rise. However, both fully insured models would place more burden on employees due to high deductibles.
Longo noted that the projections are only reliable for a short period, and insurers are seeking more data to clarify future costs. “There’s a lot of complexity, a lot of moving parts,” Elaine Whitney, from the Finance Committee, remarked, underlining the need for a robust benefits program to help keep the district’s employees.
Insights from Other Districts
In response to a question from Goldstein about what other districts are doing, Gaines mentioned that half of the 31 municipalities Lockton advises are using the state partnership plan. She indicated that some have switched to the state plan recently for economic reasons, while others have decided it’s better to stay put given their specific needs.
Gaines further emphasized the variability in needs among different districts, making it challenging to draw direct comparisons. Longo assured the board he would provide updates on the state plan as new information becomes available.
