By Linda Conner Lambeck

WESTPORT–With health insurance costs projected to go up by as much as 15 percent in the next fiscal year, the school board heard Friday that, while there are potentially cheaper options, they carry more risk and might cost district employees more.

Regarding alternative plans, “The numbers have to be convincing,” Elio Longo, the district’s chief financial officer, told the school board.

So far, Longo said what he has heard from Lockton, the district’s insurance consultants, don’t suggest the benefits offset the risks.

Others, including Board Chair Lee Goldstein, said any change, in her view, could not be made for the 2026-27 fiscal year.

“It’s a longer process,” Goldstein said. It was one that involved a committee of town and school officials and which ultimately received buy-in from district unions.

Decisions impacting the 2026-27 fiscal year budget need to be made within months.

The school board is considering a proposal from Schools Superintendent Thomas Scarice to approve a $158.9 million budget for the next school year, a 5.4 percent increase over this year. Nearly half the increase is due to projected health care costs.

The district’s projected health care bill under the State Partnership Plan is expected to be 15 percent higher starting in July. That could go up or down when more definitive rates are set in March.

Options

Would the district fare better under a different plan or by becoming self-insured?

Perhaps, said analysts Addie Gaines and Jillian Ritter from Lockton Companies LLC. But it is kind of like comparing apples and oranges, the pair told the board.

The projected 15 percent increase under the state partnership plan could become anywhere from 6.9 percent to 19.3 percent based on scenarios outlined for the board. But each alternative carries risks and potential plan changes that could make them less attractive and more costly alternatives.

Lockton officials warned there might not be enough of a savings cushion to warrant a change.

The district has been in the state plan since the 2024-25 school year, so it is currently in year two. The 2026-27 fiscal year would be three.

The state plan carries guarantees that lock in rate increases and was described as a richer plan with a wellness component focused on preventative care. There have been times when the state has helped subsidize the plan, Longo said.

A self-funded model starts off costing much less, according to the Lockton review, but the town and district would be on the hook for costs that go higher. Already in the first year of this quarter, medical claims for the district are running twice what the consultants would have expected, both in terms of the number of large claims and total cost.

Two private carriers, Anthem and Cigna, also offered quotes. Anthem’s quote came at 19.3 percent higher than what the district now pays. Cigna, which offered a plan design similar to a self-insured model, according to the Lockton consultants, projects a 11.1 percent increase over this year.

Both fully-insured models shift burden to employees in terms of high deductibles, the board was told.

The quotes, it was added, are only good for a couple of months. Beyond that, the carriers would want to see more data. It is also unknown what the cost would be in the 2027-28 fiscal year.

“There are a lot of complexities … Lots of moving parts and directions,” said Elaine Whitney, a member of the Board of Finance who was part of the discussion.

Whitney said maintaining strong and rich benefits is key to retaining district employees.

Other districts?

Goldstein asked what other districts are doing.

Of the 31 municipalities Lockton advises, Gaines, of Lockton, said half are in the State Partnership Plan. Two shifted to the plan over the past year, she added, because it didn’t make sense for them to stay where they were. For others, it made financial sense to stay put.

“It is hard to say what others are doing,” Gaines said. Needs and claims are all different, she added.

Longo said he will provide the board with updates on the state plan as soon as they become available.

Linda Conner Lambeck

^{_{Linda Conner Lambeck covers education for Westport Journal. She was a reporter for more than four decades at the Connecticut Post and other Hearst publications. She has covered education throughout Fairfield and New Haven counties. She is a proud member of the Education Writers Association.}}