Recommendations for how to proceed will be brought to board August 22
Village of Germantown - Humana, the Germantown School District’s insurance provider, has presented the district with a 27-percent premium increase for the Oct. 1 renewal rate, putting the district at a $1.4 million deficit if it stays with the current plan.
“I’m optimistic that it will get resolved because there’s no choice – you have to resolve it,” said District Administrator Jeff Holmes. “What I worry about is, it’s one of those instances where nobody within the Germantown School District is going to be happy with the outcome. Nobody’s going to like how this turns out.”
The premium increase came as a total surprise to everyone on the board, Holmes said. At the July 25 board of education meeting, insurance committee chairman Tom Barney said the increase was more than double than what was anticipated for the renewal terms.
“When we are already looking at a budget deficit going into next year, that’s not good news,” Barney said.
Holmes said there are many options on the table, and the board's insurance committee will work diligently to come up with a solution.
“You’re looking at a multitude of things – other providers, restructuring the plan within Humana, private exchanges, health savings accounts, and those types of things,” Holmes said. “What you have to try to do is make those changes without causing a huge amount of pain. Obviously there’s going to be some pain associated with addressing a potential 27-percent increase in your health insurance. It’s one that the district can’t afford. That means adjustments have to be made. In the modern age, when you talk about those type of adjustments, you’re always talking about some sort of pain for folks.”