Dear Round Rock ISD staff,
Open enrollment for your 2023 plan year benefits will occur from October 5 through October 31. You can manage your elections online through ESS or by joining us during our in-person open enrollment and YOU health and well-being event on Monday, October 10, and Tuesday, October 11. This event will be held on both days from 8 a.m. to 6 p.m. at the Raymond E. Hartfield Performing Arts Center.
This past year we performed an extensive analysis of our benefits offerings, which included comprehensive reviews of both our budget and expenditures. Our analysis found that while our health plans remain competitive, particularly in comparison to other school districts, we are not immune to our nation’s rising health care costs, which have seen significant increases in recent years.
Round Rock ISD operates a self-funded health insurance plan. Self-insured plans pay their employees’ claims rather than a per-person predetermined premium to an insurance carrier. This requires us to set up a special trust fund to earmark money to pay for incurred claims.
In 2022, the District is contributing $5,100 per employee per year towards health insurance premiums. For 2023, our Board of Trustees approved an increased contribution of $5,592. Despite this almost 10% increase in contributions, we still face a budget shortfall. While we’ve had a positive health fund balance in years past, the combination of increased costs associated with the COVID-19 pandemic and more general increases in health provider costs have acted to deplete that fund balance. As such, transfers from the District’s general funds are being used to cover increased expenses associated with 2022 benefits.
Although we have been able to maintain consistent levels of employee contributions for many years, at this time, we have no other option but to make some adjustments to our health plans and offerings in order to continue to offer zero-cost employee-only offerings. For example, we will be adding a new plan option for the 2023 plan year, which allows employees to maintain the same health insurance premiums as in 2022, including zero cost for employee-only coverage. This plan, called Blue Essentials, requires that employees select a primary care physician (PCP). Under the terms of this plan, a PCP referral is needed in order to see a specialist.
Due to this restructuring, it is important to note that based on the plan and coverage selected during open enrollment, employees participating in some of the other Round Rock ISD health insurance plans may experience a cost increase in the employee contribution requirement beginning January 1, 2023.
As you prepare to make important decisions about your 2023 benefits coverage, here are some other changes you’ll see in our offered health insurance plans.
In addition to the new Blue Essentials plan, employees will continue to experience zero-cost employee-only monthly health plan premiums through the High Deductible Health Plan. Employees who select this plan will not only see any cost increase if covering themselves only; additionally, the District will continue to provide a $42 contribution to the employee’s associated health savings account.
The standard and premium health plans provided by Blue Cross Blue Shield of Texas will cost employees an additional $20.00 per month if covering themselves only.
Monthly premium costs for the employee for the Employee/Child(ren), Employee/Spouse, and Employee/Family high deductible, standard, and premium health plans provided by Blue Cross Blue Shield of Texas will increase by 11%. This increase is in line with what we are experiencing across the nation in regard to health insurance increases.
I recognize that this information may generate additional questions or concerns. If you wish to share any feedback regarding the health care insurance information and/or other employee benefit-related issues, please send our team your comments and questions.
Your benefits team has worked exceptionally hard to offer you and your family the best healthcare options possible. We continue to look for opportunities to reduce costs, through proactive health and well-being programs, and through working with vendors to look for the best rates and programs to meet the needs of our Round Rock ISD employees.
With that in mind, we need your help. We are establishing a benefits advisory committee to create a forum to review and help guide benefits plan options for 2024. With almost 6,000 of our employees currently utilizing one of our medical plans, ensuring that we include stakeholder participation in this work is essential. We will send information on how to participate in the next few weeks.
Thank you for all that you do for our District.
Regards,
Eddie Curran
Chief Human Resources Officer