Watertown School Board Reports Positive Growth in Employee Benefit Trust

Northeast Radio SD News - Watertown, SD - During Monday night’s school board meeting, Business Manager Heidi Clausen presented a positive financial wrap-up for the 2025 fiscal year regarding the district’s self-funded Employee Benefit Trust.

The trust, which covers health and dental insurance for district employees, ended the year with a cash balance of just over $3.5 million, up from $3.3 million at the end of December 2024.

2025 Financial Highlights

The trust recorded total income of more than $9.8 million and expenses of $9.6 million, resulting in a net increase of $166,758. Key financial indicators remain strong:

·        Fund Balance: Currently at 36.11%, which Clausen noted is a healthy operating level for the trust.

·        Pharmacy Rebates: The district’s pharmacy drug plan contributed significantly to the income, bringing in $760,000 in RX rebates.

Looking Ahead to 2026

While the trust is currently solvent, officials remain vigilant about fluctuating claim costs. “Claims are always changing. The only thing we can really control is that premium level,” Clausen told the board.

The district has a scheduled meeting with Wellmark at the end of February to review claim ratios and determine the premium levels required to ensure the trust’s long-term solvency. Board members expressed hope that national efforts to address rising prescription drug prices could provide additional relief for the district’s pharmacy plan.