Quick Facts

Industry: School District

Amount of Employees: 325 Employees (2,500 Students)

Type of Insurance: Health Insurance

Valued Client Since: 2007


A Wisconsin school district had numerous issues regarding the self-funded health plan, including plan management, a prescription cost issue, double-digit premiums, and a lack of employee knowledge about the plan. In addition, the district was anticipating a $500,000 shortfall in projected budget for the following year. Then the state’s governor introduced a state biennial budget, which increased the district’s deficit to over $900,000. The district needed to make some cuts and eliminate 20-25 jobs.


The district formed an insurance committee and hired an AssuredPartners public entity benefits consultant. The consultant prepared the RFP and sent it out to the marketplace.

The consultant worked with a not-for-profit insurance carrier who works specifically with school districts. Together, they created a new plan design (a higher deductible plan design with a medical savings account) that was 24% less (with a 2-year rate guarantee) compared to what the district was currently paying.


The new plan included a “Post-Deductible HRA (Health Reimbursement Arrangement)” with a $2,000 single/$4,000 family deductible (any previous expenses that count toward the deductible were credited).

Here’s how it worked:

    • Given the mid-year plan change, the Board of Education wanted to provide a financial safety net for the district staff. Therefore, once an employee’s medical expenses exceeded $500 single/$1,000 family, the board approved an HRA to cover expenses until they reached a total of $1,000 single/$2,250 family.
    • If the medical expenses continued and exceeded that amount, the employee kicked in the remaining $500 single/$750 family until the plan’s deductible was met.
    • Once the deductible was met, as is the case with most high deductible plans, the plan paid 100% of covered expenses thereafter.
    • The consultant and the not-for-profit insurance carrier also introduced a new tier – the Employee-Plus-One tier – which had the same plan design as the family plan but offered those participants a lower premium.
    • The mid-year plan saved employees approximately $200 single/$800 employee-plus-one/$500 family in premium contribution.

Overall, the consultant and the insurance carrier saved the school district over $1 million dollars, avoided the loss of over 20 jobs, and allowed the district to increase all employee wages.

The following year the district kept the same plan but re-arranged the employer contribution toward the medical savings accounts, increasing the employee’s out of pocket costs by $250. They also provided participants with more options to plan for and save for future health care costs.