In a recent government meeting, officials discussed the upcoming health insurance renewal for 2025, revealing a significant 24% increase proposed by Priority Health. This alarming figure prompted immediate negotiations with the insurer, resulting in a slight reduction in the proposed rate. The county has historically maintained lower-than-average increases in health insurance costs, averaging just 6.14% over the past seven years, but this year's spike has raised concerns about budget management and employee costs.

To address the situation, the county is exploring various strategies, including potential plan design changes and a return to a self-funded insurance model. Previously, the county had shifted to a fully insured model to mitigate financial risks associated with high claims. However, the current rate increase has led officials to reconsider self-funding, possibly in collaboration with a consortium of local governments to share risks and costs.

Mike Haggerty from Gallagher Benefits presented on the West Michigan Health Insurance Pool, a collaborative model that allows public entities to share insurance costs and risks. Established nearly two decades ago by several school districts, the pool has since expanded to include around 200 municipal entities, representing approximately 20,000 employees. This model aims to reduce administrative costs and improve overall value for its members, with a strong retention rate indicating its effectiveness.

The meeting underscored the importance of proactive measures in managing health insurance costs and highlighted the potential benefits of collaborative approaches in navigating the complexities of employee health benefits. As the county moves forward, officials will continue to evaluate options to ensure sustainable and affordable health insurance for employees.