Taking care of our staff and their families means providing quality and accessible health care. Parkway is committed to maintaining high-quality health benefits, even as rising health care costs put pressure on our budget.

In April, we shared with staff and our community the proactive measures we are taking in the 2025-26 school year to address budget challenges driven by rising healthcare costs, the Senior Citizen Tax Freeze, and economic uncertainties.

Like many school districts across Missouri and the nation, Parkway is experiencing significant increases in the cost of healthcare.

Healthcare expenses increased 14%, or $5.3 million, in 2024 compared to the previous year. As healthcare costs continue to rise, we anticipate this trend will continue.

Chief Financial Officer Carrie Nunn shared more about the challenges of healthcare costs in this budget webinar for staff, which you can watch here. More information was posted on Inside Parkway with answers to questions.

The Benefits Advisory Committee is reviewing and recommending health insurance offerings for staff for 2026 in light of rising costs. The committee is made up of teachers, operations staff, principals, nurses, retirees, district admin, and the PNEA President.

April 15, 2025

The committee met on April 15 to begin reviewing potential changes to district health insurance plans in response to a significant rise in claims and expenses.

The 22-member committee is a cross-section of certified and operations staff. Between now and July 22, it will meet four more times to explore various plan options to maintain quality coverage while addressing budgetary pressures. In July, the committee will vote on a recommended plan to go to the Parkway Board of Education on August 6.

May 22, 2025

The Parkway Benefits Committee reviewed possible cost-saving strategies for the district’s health insurance fund, as well as addressed concerns about transitioning to Express Scripts. Members of the Benefits Committee expressed frustration over communication issues with Express Scripts and coverage confusion, particularly for those using GLP-1s for diabetes versus weight loss. Express Scripts acknowledged the challenges and outlined steps for appeals and case reviews.

CFO Carrie Nunn presented updated financial data showing that medical claims have risen 23% year-to-date, with a projected 12% increase for the rest of the year. While the district has committed $7.5 million in support for 2025 from its operating budget ($2.5M FY25 + $5M FY26), the health insurance fund is still expected to end the year with only $2.8 million. This is well below the targeted 25% reserve of $12.4 million. Without changes, the fund faces a projected $10.4 million deficit in 2026, which means our insurance wouldn’t be able to cover the medical claims of many employees.

To address the shortfall, the committee reviewed a variety of revenue-generating and cost-saving options that are up for consideration. The committee has not yet approved any option. Committee members shared additional ideas such as charging deductibles for certain medications, reevaluating the Premier Plan, and exploring lower-cost options like compounding pharmacies.