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Sycamore schools remove low-deductible health insurance option for employees

Sycamore board president Michael DeVito II

Employees at Sycamore School District 427 soon will see changes to their insurance options.

After a 30-minute executive school board session, which is not open to the public, members of the board on Sept. 30 voted unanimously to issue a memorandum of understanding regarding health insurance for certified staff during the current school year.

High-deductible health plans were the only health insurance option listed in the memorandum, meaning district employees currently on a low-deductible plan will be required to switch.

District 427 board President Michael DeVito said a committee comprising representatives of the district’s different employee groups met over recent months to review the district’s insurance options.

He said a collaboration with the Sycamore Educators Association’s negotiation team led to the district’s decision to remove employees’ low-deductible health plan options. That choice leaves the health savings account option as the district’s primary health insurance plan, DeVito said.

“Employees moving to the Blue Cross Blue Shield PPO HSA plan will save, compared to the current low-deductible option, while keeping access to the PPO network,” DeVito said. “Those already enrolled in the PPO HSA plan will see no change from the migration.”

Employees migrating from a low- to high-deductible plan will receive their full health savings account contribution by Jan. 15, according to district documents. For the current school year, that contribution will be $2,400 for single employee plans, $4,000 for family plans and a combined contribution of $4,800 for families with two employees who receive insurance through the school district, according to district documents.

DeVito said the Sycamore Education Association voted in agreement with the insurance plan changes. The association did not respond to a request for comment.

The current collective bargaining agreement between the district and the Sycamore Education Association was signed in 2022 and extends until 2026, according to district documents.

Sycamore school board member Cole Regnery said he believes the decision to drop the low-deductible insurance option will save the district money.

“I just want to say thanks to the people who thought about it,” Regnery said. “We’re saving almost a million dollars if we approve this. ... And then the membership, who was on the plan, they’re going to – the ones who switch also are going to realize savings.”

DeVito said he estimates that the employees who switch from the low-deductible plan will save about $640,000 a year.

“These are recurring savings, not one-time estimates,” DeVito read from a prepared statement. “Instead of leaving our district for insurance companies, these dollars stay with the people who make our schools excellent, with the district’s share able to be reinvested in our staff.”

Camden Lazenby

Camden Lazenby

Camden Lazenby covers DeKalb County news for the Daily Chronicle.