We know there have been questions and a desire for more clarity around the proposed changes to our retiree healthcare offerings. To help address those, we’ve created a fact sheet introducing the proposed Retiree Health Reimbursement Arrangement (RHRA) plan that would take effect on January 1, 2026.
The proposed RHRA plan is designed to offer greater long-term flexibility, affordable and sustainable healthcare options, and the ability for retirees to customize a plan that fits their unique needs.
Please note: This proposed change will not affect any Medicare-eligible retiree enrolled in the Medicare Advantage Program unless they choose to opt in.
LCPS received feedback from 14% of retirees in the last six months that they were dissatisfied with the Medicare Advantage (MA) network. Given that feedback and that the current MA contract expires 12/31/2025, we explored alternatives. The Retiree Health Reimbursement Arrangement (RHRA) is a balanced solution, providing retirees flexibility and choice, while providing LCPS consistency and financial stability. The proposed RHRA plan is an employer-funded benefit, contributing $400 per month into an account that can be used for healthcare expenses, premiums, copays, and other medical costs. The School Board will review the RHRA contribution amount annually as part of the yearly budget process in order to assess whether it remains aligned with current healthcare costs.
Unlike a one-size-fits-all plan, this model allows retirees to select a plan that works best for their needs, with options varying per month depending on location, age, and coverage preferences. In many cases, retirees could see significant savings while maintaining comprehensive coverage, including medical, vision, dental, and pharmacy benefits. Any unused funds also roll over from month to month and year to year.
We understand that navigating these choices can feel overwhelming, but we want to assure you that should these proposed changes occur, you will have ample support throughout this process. Assistance in making these decisions will be available to you at no cost from a variety of sources. In Loudoun, the Loudoun Area Agency on Aging/Virginia Insurance Counseling and Assistant Program (VICAP) has trained counselors available. Additionally, Medicare.gov has links to every State Health Insurance Assistance Program, and LCPS may provide additional resources after School Board action. There are also multiple sources available online for those who want support outside of LCPS-provided assistance.
We will continue to provide updates and resources if we move forward, so you can make informed decisions with confidence. Below you will find a link to the school board presentation regarding proposed changes to retiree benefits that took place on March 25, 2025. Please note that the board will likely take action on these proposed changes at its meeting scheduled for April 22, 2025.
At LCPS, every decision we make—especially those related to our workforce—is guided by Goal 2 of our strategic plan. This means ensuring that our employees, both current and retired, have access to competitive, sustainable, and equitable benefits that reflect our commitment to their long-term well-being.
We encourage you to review the fact sheet and other available resources and reach out with any questions.