During a recent Ashland County government meeting, officials discussed the pressing need to evaluate employee health insurance options amid financial constraints. The county's ability to raise its general levy is severely limited, with a net new construction rate of just 0.58%, the lowest in the state. This situation complicates funding for employee wages and benefits, particularly as the county aims to provide a 2.5% pay raise.

The Finance Committee is considering a switch to the state health insurance plan, which could save the county over $400,000 annually within three years, despite initial costs associated with the transition. Currently, employees bear the cost of dental insurance, but under the state plan, the county would cover 88% of those expenses. The discussion highlighted the financial strain on the county, which has faced two failed referendums in recent years aimed at increasing funding.

Officials acknowledged that while the transition to the state plan may not benefit every employee equally, it is a necessary step to stabilize the county's finances. The current self-insurance plan has proven volatile, and the smaller employee pool increases the risk of significant cost fluctuations. The larger pool of the state plan is expected to provide more predictable rates and better coverage options.

Additionally, the county is considering writing off a $1.3 million deficit incurred from previously undercharging employees for health care, a move aimed at alleviating the financial burden on current staff. The meeting underscored the challenges faced by local governments in maintaining services and employee compensation amid rising costs and limited revenue growth.