County staff informed the Board of Commissioners about a new surcharge tied to the state health insurance plan that was enacted in House Bill 125. Staff said the surcharge, not clearly limited to state-only employees in drafting, could apply to local governments that participate in the state health plan and estimated an approximate $340,000 unanticipated cost for Ashe County in the current fiscal year.

Adam Stum explained the state plan faces a multi-year shortfall and the surcharge mechanism is intended to close part of that gap. He said the statutory language in House Bill 125 does not explicitly exempt local governments participating in the plan and that counties and municipal associations were surprised by the administrative interpretation.

Commissioners and staff discussed options including seeking a waiver of any late-payment penalties, requesting that implementation be deferred until July 1, 2026, and investigating alternatives such as returning to a local or pooled insurance arrangement. Stum said the county's contract with the state plan contains clauses that complicate exiting the state pool and that legal review or legislation may be required for any change.

Commissioners approved a motion authorizing the chair to sign letters to the state treasurer and local legislators asking for relief, a waiver of penalties and consideration of a one-year deferral to allow counties to budget for the surcharge. Staff said the issue affects other public agencies that participate in the state plan, including the county health department and library system.