County hears preliminary analysis that self‑funded health plan could reduce employer costs

VANDERBURGH COUNTY — The county’s insurance broker presented a preliminary analysis showing that moving the employee health plan to a self‑funded platform could lower the county’s maximum financial liability and capture drug‑rebate revenue now retained by insurers.

Chris Maynard of Shepherd Insurance told the council the initial fully insured renewal from UnitedHealthcare was roughly $8.6 million (a preliminary figure in the meeting packet) and that a self‑funded proposal under consideration showed a lower maximum county liability and an expected rebate stream from pharmacy benefits. "As a fully insured plan right now, you get no drug rebates," Maynard said, adding that estimated drug rebates on the self‑funded option were about $400,000 based on current pharmacy utilization.

Maynard said the self‑funding options include aggregate stop‑loss insurance to protect the county from catastrophic single‑claim exposure and that contracts under negotiation would include protections for new high‑cost claimants ("lasers") and a rate cap on premium increases year‑over‑year. He said final underwriting and firm numbers were expected within a week and that, if the county proceeds, the plan would start Jan. 1, 2026.

Council members asked for the analysis to be provided through the auditor’s office; Maynard agreed and said he would supply the final figures. The preliminary materials showed a comparison of an Anthem self‑funded option and the UHC fully insured renewal; Maynard stressed the county should plan to fund to the maximum‑liability number for budget purposes.

No formal vote was taken; the presentation served as an informational update to the finance and county council. Council leaders said they expected to review the final underwriting numbers before making a final decision on plan design.