Elmhurst D205 Sees 37% Hike In Health Insurance

ELMHURST, IL – Elmhurst School District 205 is expected to see a 36.8 percent increase in its health and dental insurance costs for employees next year.

The hike was attributed to inflation and a surge in large claims.

This week, the school board approved the increase with Blue Cross Blue Shield, which a district consultant called the "800-pound gorilla" in the marketplace.

But board members said such cost hikes are not sustainable, saying they would take away money for salaries.

Because of the big claims, the district consultant, John McConnell of AssuredPartners, said other insurance companies are not jumping for Elmhurst's business.

"Frankly, we have a higher percentage of very sick people, a higher percentage of cancer and a couple of birth complications and other things," McConnell told the board.

The latest increase is far higher than the ones from the last two years – 3 percent and 7 percent. The hike for next year is nearly double that of the market average of 19 percent, McConnell said.

He warned the district could see an increase of up to 9 percent in 2025.

In the last year, McConnell said, 41 members of the district's insurance plan accounted for $4.5 million of the $18 million in claims. That is twice the rate of AssuredPartners' other clients, he said.

"I don't see abuse, meaning people running to the ER when it's not necessary and filling brand-name prescriptions when generic is available," he said.

He said more work could be done to help plan members deal with chronic diseases.

"We could help them manage their health care better," McConnell said. "That would keep more money in their pocket and keep them healthier, so they don't become shock claimants."

Board member Kara Caforio was among those who expressed alarm about the cost increase.

"Salary and benefits are the bulk of our costs, obviously. Our pot of money each year is pretty finite and definitely not going up by 36 percent," she said. "Now, if benefits are taking up so much more of that salary and benefits, that cuts into the salary we can pay."