JANESVILLE — The Janesville School District is recommending it stick with Dean and Mercy for its insurance carriers after exploring other options because of rising costs.
When the school board meets on Tuesday, it will consider the recommendation that has a projected $1.2 million increase. The district had a $1.3 million increase in insurance costs ahead of the 2024-25 school year.
Dean will renew with the district at an almost 22% increase. Mercy will renew at an almost 10% increase with a rate cap at 11.9% for 2026-27.
The Mercy monthly single premium, if approved, would be $83.68, up from $76.08 in 2024-25 and $68.24 in 2023-24. For employee and spouse, it would be $184.96, up from $184.86 in 2024-25 and $150.84 in 2023-24. For employee and child, it would be $155.66, up from $141.53 in 2024-25 and $126.95 in 2023-24. For family, it would be $251.95, up from $229.07 in 2024-25 and $205.46 in 2023-24.
Under the Dean plan, the single tier monthly premium would be $323.97, up from $211.24 in 2024-25 and $143.72 in 2023-24. The employee/spouse tier would be $681.98, up from $439.01 in 2024-25 and $294.29 in 2023-24. For the employee/children tier, it would be $612.69, up from $401.23 in 2024-25 and $274.31 in 2023-24. The family tier monthly premium would be $949.18, up from $614.57 in 2024-25 and $414.85 in 2023-24.
The district, in an effort to keep costs down, looked at other options, including soliciting quotes from other carriers. Those carriers — Anthem, Quartz and United Healthcare — wouldn’t even quote, citing “uncompetitive pricing,” according to a report from Jamie Brown, the district’s benefits manager.
The district also solicited proposals from both Dean and Mercy on the price of a “total takeover,” which would be one or the other becoming the district’s sole insurance provider. According to Brown’s report, neither showed “a significant savings to the employee or district.”
The district looked at the possibility of transitioning from health savings accounts to health reimbursement arrangements, but it would remove the employee’s ability for tax savings, Brown said at the April 8 school board meeting. Also in her report, Brown wrote that the district also looked at adjusting the contribution structure, increasing the cost for Mercy subscribers while decreasing it for Dean subscribers.
Prior to 2024-25, the district covered 90% of the staff’s health plans. Starting with 2024-25, it covered 88% There was discussion to change it to 85% or 82% for 2025-26, but the district decided against recommending that to the board, Brown said April 8.
“The movement for the district or the employee, it just would not have made sense to go that route,” Brown said.
Dean has the right to decline any renewal if enrollment dips below 20%.
As of July 1, 2024, there were 763 district employees who subscribed to a Mercy health plan and 204 who subscribed to a Dean plan.
The district also looked at a self-funded insurance model that would “achieve long-term cost control,” Brown wrote in her report. Brown told the school board that going to a self-funded model immediately would cost $4 million more than a renewal. So, the district is looking at this long-term with a target date of July 2027.
Dental insurance
The board will also be presented with a proposal for dental insurance. If approved, the single tier monthly premium would be $40.79, with the employee cost being $4.89 and the district cost being $35.89. In 2024-25, The single tier premium was $39.60, with employees covering $4.75 and the district covering $34.85. The family tier premium would be $120.24 with employees covering $14.43 and the district covering $105.81. In 2024-25, the premium was $116.74, with employees covering $14.01 and the district covering $102.73.
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