Dear Upper Saddle River Community,

We are pleased to share an important step forward for the Upper Saddle River School District. At Monday night’s Board of Education meeting, the Board unanimously approved the Superintendent’s recommendation to transition from the School Employees’ Health Benefits Plan (SEHBP) to the New Jersey Schools Health Insurance Fund (SHIF), effective January 1, 2027. This decision follows a careful review of our health insurance options and an opportunity that became available to the district this year. Our priorities throughout this process have been clear: maintain strong academic programs and educational opportunities for our students, provide quality health coverage for our employees, and responsibly manage taxpayer resources.

Over the past year, rising health insurance costs have been one of the largest contributors to increasing district expenses. The district has been closely monitoring these costs and looking for opportunities to improve the long-term sustainability of our health benefits. Any alternative needed to provide coverage equal to or better than the coverage required under our collective bargaining agreements, while also providing a financially responsible and sustainable path for the district.

Why the Timing Matters
The district’s ability to pursue an alternative was dependent on our health insurance claims experience and whether the insurance market would provide a viable proposal. Last year, based on the health insurance claims experience available at that time, no insurance carrier or alternative health insurance program provided the district with a proposal.There was no alternative available for the district to evaluate or transition to.This summer, updated health insurance claims experience showed an improvement, creating an opportunity to return to the market and explore options that had not previously been available.

Once options became available, the district acted promptly.The Business Administrator, working with the district’s insurance broker, led the analysis, while the Superintendent and Board reviewed the options and their financial and operational implications.

The Options Considered
The district evaluated four options for providing health coverage.The percentages below reflect the projected premium increase for the applicable coverage period shown:

• Remain in SEHBP: approximately 34.4% increase for the one-year term

• Self-fund independently: approximately 51% increase for the one-year term

• Contract directly with an insurance carrier: approximately 21% increase for the one-year term, with no guarantee of renewal and no assurance of future renewal rates or terms

• Join SHIF: approximately 18% increase for the initial 18-month period

The district approached five insurance carriers directly, and only one submitted a proposal. Because the options differed in their term, structure, financial risk, and renewal provisions, the district considered more than the projected premium increase when evaluating each option. After evaluating the available options, SHIF offered the combination of coverage, risk-sharing, stability, transparency, and financial sustainability that best aligned with the district’s priorities.

Why SHIF
More than 125 New Jersey school districts participate in SHIF, allowing districts to pool healthcare costs and risks. For a district of our size, this provides greater protection from unusually high claims than we could achieve independently. SHIF also provides greater transparency into claims and healthcare cost drivers, along with a governance structure that gives participating districts a meaningful role in overseeing the program.

Protecting the Future of Our Schools
We recognize that health insurance is an important employee benefit and that healthcare costs place pressure on both our staff and taxpayers. This decision does not eliminate the challenge of rising healthcare costs. Health will remain a significant district expense requiring ongoing monitoring and responsible management. This decision provides the district with a structure designed to share risk across participating districts while providing greater transparency and oversight.

Financial responsibility is essential to protecting the quality of our schools. By responsibly managing one of the district’s most significant and rapidly increasing expenses, we strengthen our ability to maintain strong academic programs and educational opportunities for our students, support the employees who educate and care for them, and use taxpayer resources wisely. We appreciate the work of our Business Administrator, administration, Board of Education, and insurance professionals in carefully evaluating this opportunity. We will continue to monitor healthcare costs and other financial pressures and make thoughtful decisions in the best interests of our students, employees, and community.

Sincerely,

David Kaplan
Superintendent

Susan Gandara
President, Board of Education