The Stillwater School Board voted Thursday to exclude GLP-1 medications from insurance coverage for weight loss treatment, opting for a 13% premium increase instead of 18% to address a $3.5 million insurance shortfall.

The decision affects approximately 90 employees currently using the medications, which cost around $9,800 annually per person. The district projects saving $500,000 by excluding weight loss coverage while maintaining coverage for diabetes and cardiovascular conditions. Board members described the vote as made "with a heavy heart" due to its personal impact on employees.

The board faced competing recommendations from their insurance committee, which favored continuing full coverage, and an employee survey where 69% of 593 respondents supported discontinuing weight loss coverage to contain premium costs. Insurance consultant Aaron Casper from NIS recommended the exclusion as the most effective way to reduce claims costs.

The district's insurance plan currently covers about 3,000 people and faces projected claims of $24 million against premium income of $20.5 million. Superintendent Chris Funk explained that double-digit insurance increases have become unsustainable given the district's budget constraints, noting the district cannot maintain its historical 85-15 cost-sharing arrangement without additional financial strain.

Open enrollment is scheduled for May 5, with the new rates taking effect July 1. The district will negotiate memorandums of understanding with bargaining units regarding contribution increases, proposing 6-12% district contribution increases rather than maintaining the traditional cost-sharing model.