Davis Joint Unified School District

Blended Rates Explained

Employees who work on a 10- or 11-month schedule receive health insurance coverage for all 12 months of the year, even though they do not receive paychecks every month. To ensure health insurance premiums are collected evenly throughout the school year, DJUSD uses blended rates.

A blended rate is calculated by determining the total annual cost of health insurance coverage and then spreading that cost across the employee's available paychecks. For example, a 10-month employee receives 10 paychecks but remains enrolled in health coverage for all 12 months of the year. Rather than collecting different amounts throughout the year, the annual premium cost is divided into equal payroll deductions.

Blended rates may also account for changes in health insurance premiums that occur during the plan year. When premium rates change on January 1, the annual cost is calculated using the applicable rates before and after the change, then combined and averaged across the employee's pay periods.

DJUSD applies a similar blended approach when calculating District contributions for eligible 10- and 11-month employees. Because these employees do not receive paychecks during all 12 months of the year, the District's annual contribution is adjusted to ensure support continues throughout the entire coverage period.

The result is a consistent payroll deduction amount that helps employees maintain uninterrupted health insurance coverage year-round while simplifying payroll deductions.