Valdez schools superintendent warns health insurance could rise 40% in April

Valdez City Schools could see a health insurance increase of up to 40% when its plan renews in April, Superintendent Jason Weber wrote in a report for the school board's meeting Monday, Nov. 9.

"I received bad news on insurance, if our claims continue to stay elevated, we are looking at a possible 40% increase," Weber wrote.

A 40% increase would raise the district's employer-paid share from $3.76 million last year to close to $5.3 million, about $1.5 million more, according to the Nov. 9 board packet. Weber hopes the figure falls to the 20% to 30% range over the next couple of months. Whatever the increase, he wrote, it will hit the district's books in April.

Weber wrote that he is still optimistic one-time funding the district has not yet allocated could help bridge the gap. In September, the district anticipated $595,000 in one-time state funding and a $274,000 energy relief grant. His report does not say how much remains unallocated.

Director of Business Services Susan Love reports the district's self-funded plan running at 131.6% of budgeted claims this plan year. A broker's report from Parker, Smith & Feek puts the schools' net medical and prescription claims at $1.87 million from April through September, against $1.42 million budgeted, and at 145.6% of budget over the 12 months through September.

Claims ran 100.3% of budget in the plan year that ended March 2025 and 120.8% the next.

Last spring followed a similar path. In March, Weber told the board the broker's estimate had risen from 5% to about 17%. The renewal came in at 20%, which Weber put at $489,000. Administrators proposed $180,000 in cuts, including a budgeted half-time preschool position and curriculum subscriptions, plus a $135,500 draw from undesignated reserves.

In October, the board asked the City of Valdez for $15.1 million for the 2027-28 fiscal year, a 29% increase. Board President Kalin King's Oct. 8 letter with that request already forecast "another substantial increase to health insurance in FY28."

The city shares the same broker and claims report but renews its insurance separately. The Valdez City Council approved the city's renewal on March 17 at about 10.7%.

The board holds a work session at 6 pm and its regular meeting at 7 pm Monday in the Valdez City Council Chambers.