Austin Public Schools (APS) has approved a rise in health insurance premiums for the 2025–2026 fiscal year. Starting soon, district employees will pay more out-of-pocket for coverage under the district’s health plan.
APS operates a self-funded health insurance plan, meaning it pays for employee claims directly from a fund made up of employee premiums.
Next year, medical plan premiums for APS employees will increase by 14%, while dental plan premiums will go up by 3%.
Superintendent Joey Page explained that the decision was necessary due to rising costs. Over the past two years, the plan’s payouts have exceeded its income significantly. Between April 2023 and March 2024, the loss ratio was 142%, and from April 2024 to March 2025, it was 112%. The industry target for loss ratio is 85%.
“Healthcare costs in our area are among the highest in the state, and we have seen more usage of services overall,” Page said. “This has driven up costs.”
To reduce the impact on employees, APS has promoted tools like HealthiestYou, a 24/7 telehealth service that helps staff access care more affordably and has helped lower plan costs.
Despite the premium increases, APS believes its health benefits remain strong and competitive. The adjustments are intended to ensure the long-term stability of the insurance plan and continue supporting employees.
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