County discusses self-funding and VEBA contributions amid healthcare plan concerns

The Franklin County Board of County Commissioners convened on March 19, 2025, to discuss critical issues surrounding employee health benefits and insurance options. The meeting focused on the county's current medical programs, the implications of transitioning to self-funded insurance, and the management of Voluntary Employee Beneficiary Association (VEBA) contributions.

The session began with a review of the county's existing health insurance framework, highlighting the importance of benefits in attracting and retaining employees. Concerns were raised about the potential challenges of implementing a new insurance model that could place the county outside the norm compared to peer organizations. The discussion emphasized the need for careful consideration of how changes might impact employee satisfaction and retention.

A significant portion of the meeting was dedicated to exploring self-funding as a viable option for the county's health insurance. Presenters noted that self-funding could provide greater control over plan design and costs, allowing the county to realize any surplus from lower-than-expected claims. However, they cautioned that transitioning to a self-funded model requires thorough analysis of existing contracts and potential risks, particularly regarding employee migration back to the medical plan if VEBA contributions are altered.

The commissioners were informed that the county's current medical program is performing well, suggesting that any changes should be approached cautiously. The presenters highlighted the importance of understanding the details of existing contracts and the timing of negotiations with various bargaining units, as these factors could significantly influence the outcome of any proposed changes.

The meeting also addressed the complexities of VEBA contributions, with discussions on how adjustments could lead to adverse selection risks. The presenters emphasized the need for a strategic approach to modifying contributions to ensure that the plan remains sustainable and attractive to employees.

In conclusion, the commissioners were encouraged to consider multiple insurance brokers to explore different options and solutions. The presenters underscored the importance of data analytics in making informed decisions about health benefits and the potential impacts of any changes on employee costs and satisfaction. The meeting concluded with a commitment to further analyze the county's health insurance strategy and to engage in ongoing discussions with stakeholders to ensure a balanced approach to employee benefits.