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Columbus City Schools avoided premium surcharges after audit
A forensic audit found the Aon arrangement cost the district at least $23.5 million and depleted self-insurance reserves, raising the risk of employee premium surcharges up to 25% for 2027.
A forensic audit of Columbus City Schools found its arrangement with insurance consultancy Aon cost the Ohio district at least $23.5 million and depleted its self-insurance fund reserves, according to Insurance Business. The audit also concluded the benefits setup was driven by materially wrong cost projections that led the district to overspend against its self-insurance fund.
Insurance Business reported that the audit outcome would have left district employees facing premium surcharges of up to 25% for 2027, creating an employee cost crisis. A unanimous Joint Insurance Committee vote on September 28 averted that scenario by capping premium increases at 8% through plan changes negotiated with unions.
Insurance Business said the Aon work included more than $300,000 in flat fees for 2024 and 2025, and the audit cited commissions that were not disclosed. The outlet also noted the audit described governance gaps in how self-funded employers oversee consultant relationships, a problem it said is not limited to a school district.