Lake Land College Board Approves Three-Year Aetna Contract, Faces 15.34% Medical Premium Hike

Lake Land College Board of Trustees Meeting | October 13, 2025

Article Summary: The Lake Land College Board of Trustees on Monday, October 13, 2025, approved a three-year renewal with Aetna for employee health, dental, and vision insurance. The new agreement includes a significant 15.34% increase in medical premiums for the 2026 calendar year and a total administrative fee of over $525,000 for the contract term.

Health Insurance Renewal Key Points:

• Contract Term: The new agreement with Aetna of Hartford, Connecticut, runs for three years, covering 2026, 2027, and 2028.

• Premium Increase: Medical insurance premiums for employees will increase by a net 15.34% in 2026.

• Administrative Fees: The contract includes no increase in administrative fees for the first year, but 3% increases in the second and third years, totaling $525,052 over the term.

• Fund Transfer: To help manage rising healthcare costs, the board approved distributing $1 million from its anticipated fiscal year 2025 fund balance to the Restricted Health Insurance Fund.

MATTOON, IL – Employees at Lake Land College will see a significant increase in their medical insurance premiums next year after the Board of Trustees on Monday, October 13, 2025, approved a new three-year contract with Aetna for the college’s health, dental, and vision plans.

The renewal, effective for the 2026 plan year, comes with a 15.34% net increase in medical premiums. According to a report from John Woodruff, Vice President for Business Services, Aetna’s initial proposal projected a 17.54% increase in medical expenses, but the college’s Insurance Committee and consultant Gallagher negotiated deductible and copay adjustments to reduce the premium hike by 2.2%. The administration recommended passing the increased costs on to employees.

In a related move to address escalating healthcare expenses, the board also approved the transfer of $1 million from the college’s anticipated fiscal year 2025 fund balance to its Restricted Health Insurance Fund. Woodruff noted that the transfer is contingent on the final audit confirming the fiscal year 2025 excess fund balance exceeds $2 million. He explained that healthcare costs are trending upward nationally and at the college, and the stop-loss ceiling per employee is set to increase from $175,000 to $200,000.

The board approved both the three-year renewal with Aetna and the premium increases in separate unanimous votes.