ELMHURST, IL – On the heels of a 37 percent increase last year, Elmhurst School District 205 is likely to see another double-digit rate hike in health insurance costs.
According to a district memo, insurance claims increased last budget year by nearly 13 percent. As a result, the district’s insurer, Blue Cross Blue Shield, is recommending a 10 percent hike in premiums, the memo said.
For the last few weeks, the district’s insurance committee has been meeting to find ways to reduce the size of the increase.
Now, it is considering another Blue Cross plan with higher deductibles, co-pays and out-of-pocket maximums, officials said. With that plan, the premium increase would amount to 5 percent.
That lower percentage would comply with the new three-year teacher’s union contract, which limits annual premium increases to 8 percent.
At a finance committee meeting Wednesday, Chris Whelton, the district’s assistant superintendent of finance, said the recommended increase was concerning.
He noted more than 80 percent of the district’s money comes from property taxes. And the district must limit tax hikes to the rate of inflation, up to 5 percent.
Athena Arvanitis, the board’s president, said the “skyrocketing” expense is unsustainable.
“If there are opportunities to reduce even further than 8 percent, I would like the (insurance) committee to strongly consider those ideas,” she said. “Every dollar on insurance is one less dollar that we’re spending on other things that students need.”
Board member Kara Caforio said the district needs to consider every small change to offset the recent increases. She said she expected another double-digit hike next year.
Whelton said he expected the insurance committee to arrive at a decision this week. Its recommendation would be presented at the school board’s Sept. 24 meeting, he said.
A video of Wednesday’s finance committee meeting was taken by the League of Women Voters of Elmhurst. It was posted on the group’s Facebook page.
