Wayne school officials say they are considering leaving New Jersey's School Employees' Health Benefits Program and moving to a self-insured health coverage model as the district grapples with rising health care costs.

During an Oct. 8 Board of Education meeting, board President Donald Pavlak Jr. said the district is considering leaving the state health benefits plan in January or February and moving to a self-insured model, in which the district would fund employee health claims directly while using insurance protection for major claims.

Pavlak described employee health care costs as "the most critical financial challenge" facing the district and school boards across the state. He said the district has faced health insurance cost increases of 15% two years ago, 15% last year and 34% this year.

Wayne Township Public Schools serves roughly 8,000 students across 15 schools, according to Pavlak.

Pavlak said the district recently began working with Fairview Insurance and that officials believe a self-insured model could lower costs while maintaining employee benefits.

"We will maintain the exact same benefit plans, the same comprehensive coverages that we have now," Pavlak said during the meeting. "No one will see any reduction in what they have."

Pavlak said the district would use stop-loss insurance to limit its exposure to unusually large medical claims.

In a statement to News 12, Pavlak said the district's review of self-insurance is intended to address what he described as unsustainable increases in health care costs while protecting employee benefits and limiting future budget pressures.

News 12 has requested records related to the district's work with Fairview Insurance and its review of a potential transition away from the state health benefits program, including analyses, projections and related documents.