Warren County School Board Reviews Health Insurance Options Amid Steep Cost Increase

The Warren County School Board reviewed potential changes to employee health insurance plans during a lengthy discussion this week as the division faces a 23.7% increase in premiums.

Rachel Drake, the school system’s director of personnel, presented several options for restructuring the current health insurance plans through the division’s provider, TLC.

Drake said the increase comes after employee claims rose from roughly $9 million to $11 million, reflecting increased use of medical services.

“Our employees are using their insurance as they should,” Drake said. “There is a reason our claims increased — the benefits are being used.”

The division currently offers three plans with different deductibles: $250, $1,000, and a high-deductible plan that will rise to $3,400 next year.

To manage rising costs, Drake presented four possible options, ranging from reducing the number of plans to restructuring deductibles and employer contributions.

The most expensive option would keep all three current plans in place with adjustments to contribution levels. Drake said that scenario would require about $1.2 million in additional funding.

Two other options would reduce the number of available plans to two. One would eliminate the $250 and $1,000 plans and replace them with a $500 deductible option alongside the high-deductible plan. Another would remove the $250 plan entirely and shift employees into the $1,000 deductible plan.

Drake said those approaches could reduce costs but would likely place greater financial pressure on employees who rely on lower deductibles.

Instead, Drake recommended a fourth option that would replace the current $250 deductible plan with a $500 deductible plan, while keeping the $1,000 and high-deductible options.

“This option still provides employees with choices while helping us manage the financial impact of the increase,” Drake said.

Under that proposal, the division would still need to request slightly more than $1 million in additional funding.

Drake emphasized that many employees rely heavily on their insurance coverage, and removing lower-deductible options entirely could create hardships.

“We have a very diverse staff with very different needs,” she said. “Providing multiple options helps employees find something that works for them.”

School board members also discussed how current contribution structures sometimes create inconsistencies, particularly for married employees who both work for the school division.

Board member comments highlighted efforts to equalize employer contributions across different plan tiers to make coverage more equitable.

Warren County School Board member Melanie Salins speaks during a discussion on rising employee health insurance costs, noting that medical services in rural areas often cost more due to limited provider competition.

The discussion also touched on broader factors driving healthcare costs. Board Member Melanie Salines noted that medical services in rural areas can cost significantly more than in larger metropolitan regions due to limited provider competition.

The insurance changes are still under review. Drake said the division is also preparing a request for proposals (RFP) to explore other insurance options, including possible self-insured plans.

The school board is expected to continue reviewing options during upcoming work sessions before making a final decision.

Watch the Warren County School Board Meeting of March 4, 2026.