Sycamore Schools Shift to High-Deductible Health Plans for Staff

Employees at the Sycamore Community School District 427 will see significant changes to their health insurance options as the district transitions to high-deductible plans. On September 30, 2023, the Board of Education conducted a 30-minute executive session, ultimately voting unanimously to issue a memorandum regarding health insurance for certified staff for the current school year. This decision means that the low-deductible health insurance option will no longer be available.

The memorandum specifically lists high-deductible health plans as the sole insurance option for district employees. As a result, those currently enrolled in low-deductible plans will be required to switch to the new options. According to Michael DeVito, President of the Sycamore School Board, a committee of representatives from various employee groups reviewed the insurance alternatives over the past few months. This review, in collaboration with the Sycamore Educators Association’s negotiation team, led to the decision to eliminate the low-deductible plans.

DeVito emphasized that employees transitioning to the Blue Cross Blue Shield PPO HSA plan will benefit financially compared to their current low-deductible option while maintaining access to the PPO network. “Employees moving to the Blue Cross Blue Shield PPO HSA plan will save compared to the current low-deductible option,” he stated. For those already enrolled in the PPO HSA plan, no changes will occur.

Employees transitioning from low-deductible plans to high-deductible plans will receive their full health savings account contributions by January 15, 2026. For the current school year, contributions are set at $2,400 for single employee plans and $4,000 for family plans. Families with two employees covered by the school district will receive a combined contribution of $4,800.

The Sycamore Education Association has agreed to the changes, although they did not provide a comment upon request. The existing collective bargaining agreement between the district and the association, signed in 2022, will remain in effect until 2026.

During discussions, Cole Regnery, a member of the Sycamore School Board, mentioned his belief that discontinuing the low-deductible option would lead to substantial savings for the district. “We’re saving almost a million dollars if we approve this,” he noted. Regnery also highlighted that employees switching plans would realize savings as well.

DeVito projected that the transition would result in approximately $640,000 in annual savings for the district employees making the switch. “These are recurring savings, not one-time estimates,” he stated. The decision to move to high-deductible plans aims to keep financial resources within the district, allowing funds to be reinvested in educational staff and programs.

This shift in health insurance options reflects the district’s ongoing efforts to optimize benefits for its employees while managing costs effectively. The changes illustrate a strategic approach to employee health care in a challenging financial environment, emphasizing the district’s commitment to its staff.