Burnsville-Eagan-Savage School District — Agenda
Wednesday, April 8, 2026
Story
District #191 Eyes 5% Medical Plan Rate Hike Amid Soaring Drug and Mental Health Costs
Burnsville Eagan Savage School District #191 Self-Funded Dental Plan Review and Funding Recommendations
Votes (1)
2025-2026 Medical and Dental Plan Review and 2026-2027 Funding Recommendations
The work session provided a detailed overview of the district's self-funded insurance plans. For medical, key findings included a projected reserve of 48.7% (below the 55% target), pharmacy representing 25% of spend, a $1.1 million (9% increase) in mental health claims, and three high-cost claimants exceeding $1 million each. Rising costs prompted a recommendation for a 5% funding increase for 2026-2027, with stop-loss premiums projected to rise by 17%. For dental, claims were stabilizing, reserves were at 43.3% (above the 25% target), and a 5% funding increase for 2026-2027 was recommended, factoring in a 5.9% increase in Delta administrative rates.
Notable Quotes (4)
Pharmacy represents 25% of the health plan spend at $195 PMPM. Mental health claims continue represent over $1.1 million of spend, up 9%.
With the continued rising costs of medical and prescription drugs not slowing, the need to adjust rates to cover expenses is what drives the recommendation for an increase to funding of 5%.
Stop premiums will increase by 17% thanks to the stop loss premium cap.
Funding recommendation is to increase rates 5% for 2026-27.
Ordinances & Resolutions (2)
An evaluation of the current fiscal year's performance and financial status of the district's self-funded health insurance plans.
Proposals for adjustments to funding levels for the upcoming plan year for the district's self-funded health insurance plans.