El Paso School Employees Face Steep Health Insurance Premium Increases

Employees at two of El Paso’s largest school districts are grappling with substantial increases in health insurance premiums. The rising costs threaten to deduct hundreds of dollars from monthly paychecks, leading some educators to consider leaving their positions. The financial strain is particularly acute for those covering spouses or children under their plans.

Socorro Independent School District trustees approved a new funding plan during a special board meeting on Thursday. The adopted option keeps district contributions unchanged while shifting more of the cost to employees. Beginning with the 2027 plan year, some staff members will pay nearly $4,500 more annually for coverage.

Under the approved plan, monthly premium increases vary by coverage level. Employee-only plans will rise by $150.06, while family coverage will see an increase of $374.86. These adjustments come just two days after voters rejected a tax rate election that would have provided the district with approximately $49 million in additional funding.

District officials noted that one proposed insurance option relied on revenue from the rejected tax measure to offset rising costs. Without that funding, administrators recommended the current plan as the most financially sustainable approach. Board President Michael Najera stated that the district must live within its budget while addressing priorities such as student safety, technology, and transportation.

Mario Carmona, the district’s director of employee benefits, explained that rising healthcare costs are pressuring the self-funded insurance program. He estimated that the projected difference between 2026 and 2027 plan costs is approximately $8 million. Including administrative fees and other expenses, the total funding need could approach $10 million.

To support the health plan, the district has transferred roughly $44 million from its general fund through 2025. With additional transfers planned for 2026, that total is expected to reach approximately $50 million. Officials believe continuing these subsidies would make it harder to rebuild the district’s fund balance and meet other operational needs.

El Paso Independent School District employees face similar challenges as new rates take effect in January. Kara Cervantes, president of the local teachers’ union, reported that some employees are seeing their monthly premiums double or even triple. She noted that the financial impact is becoming clearer as staff review their open enrollment options and calculate future take-home pay.

Cervantes pointed out that the district had not significantly increased employee premiums for about five years before the recent hikes. She argued that smaller, gradual adjustments over time would have been more manageable than the current lump sum. The union is urging district leaders to explore additional funding sources and local healthcare partnerships to help employees afford coverage.

The union president expressed concern for veteran teachers and hourly workers who may struggle with the new expenses. Some experienced educators are now considering early retirement or moving to other professions. Cervantes also cited insufficient state funding for public schools as a contributing factor to the financial difficulties facing districts across Texas.

Socorro ISD officials are working to identify ways to reduce out-of-pocket expenses for employees. The district is exploring expanded partnerships with local medical centers and potential pop-up clinics. Assistance will be available in person, online, and by phone during the open enrollment period, which runs through December 6.