(The Center Square) – A spokeswoman for a global consulting firm, AON, is defending its advice to one of its clients, Ohio’s largest public school district, despite an alleged $40 million cost overrun.
“As Columbus City Schools’ health and benefits consultant for the past 18 years, Aon served the district with professionalism and transparency,” the company told the Center Square in a statement.
Issues arose nearly a year ago when concerns were raised about the consultant’s work, prompting a view of the Columbus City Schools self-insured fund, District spokesman Michael Brown told The Center Square.
Columbus City Schools is self-insured for employee health, Brown said.
For more than 10 years, AON served as the district’s consultant and “recommended the amount of district and employee contributions to the Self-Insurance Fund, and each year, would recommend premium increases to account for projected increased medical costs and claims,” Brown said.
The district works as a self-funded entity for employee healthcare, with a fund that consists of district and employee contributions to pay employee medical claims directly, Brown said.
“These funds are in a dedicated account called the Employee Benefits Self-Insurance Fund, which is separate from the district’s general fund,” Brown said.
What the review found, according to Brown, was a shortfall.
“That independent review found that, for calendar year 2025, the Self-Insurance Fund was underfunded by $22 million, meaning that medical claims being paid out outpaced the premiums being paid in by the Board and employees,” Brown said. “The actuarial analysis also has estimated that the Self-Insurance Fund will be underfunded by $7-$18 million for 2026.”
Over two years, the shortfall is estimated to be from $29 to $40 million, Brown said. “
Fortunately, the Self-Insurance Fund reserve covered this underfunding to date,” he said.
The school district terminated its relationship with AON on March 9.
It also fired the district’s Executive Director of Talent Management on June 16, Brown said.
“The district is following the independent actuary’s recommendations and working with its labor partners to actively manage the health plan, strengthen monitoring of the Self-Insurance Fund, and correct the identified funding issues so that it can continue to provide health benefits to employees and their families and keep the Self-Insurance Fund solvent,” Brown said.
