School Board employees, retirees will keep same insurance with no premium hike

CENTERVILLE --St. Mary Parish School Board employees and retirees will pay no more for health insurance coverage next year while keeping the current level of benefits, despite significant premium increases sought by Blue Cross/Blue Shield.

At a special meeting Thursday, the School Board agreed to absorb more than $1.15 million in additional premiums in 2027 rather than pass the increase on.

Blue Cross had quoted a proposed premium increase of 11.9% in 2027 for covering 701 active employees and 175 retirees still on that plan. Blue Cross also proposed a premium increase of $12 per person per month for retirees on the board's Medicare advantage plan. A total of 638 Medicare-eligible retirees are on the advantage plan.

The board had put off action until insurance consultant James Perez could appeal the Blue Cross premium determination and seek a quote from another insurer, United Health Care.

UHC did not submit a proposal. But Blue Cross lowered its proposed premium increase to 7.9%.

On Thursday, Perez presented the School Board with three options: passing along the increase to employees and retirees; absorbing the increase but with a new $250 deductible on prescription drugs; and absorbing the full increase of $1,151,903.09 for the commercial plan and the Medicare advantage plan.

Perez recommended absorbing the entire cost, and the School Board agreed without objection.

The board had budgeted more than $400,000 for a premium increase. The rest of the $1.15 million will come from a $3 million fund set aside in case the board decided to self-insure, which Perez had asked the board to consider.