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Commissioners briefed on 2026 medical renewal; staff favors SelectHealth preference network at 6.9% increase
Summary
Staff described renewal negotiations with SelectHealth and recommended accepting a 6.9% premium increase tied to a new "preference network" rather than raising employee deductibles to reach a 5% target; commissioners did not direct an immediate bid solicitation.
County benefits staff reviewed bids and counteroffers for the county—s 2026 medical plan and recommended accepting SelectHealth—s 6.9% renewal under a new preference network rather than lowering premiums to 5% by raising deductibles and out-of-pocket maximums. The presenter said SelectHealth—s original renewal proposal was 8.9% and that the vendor—s counteroffers dropped to 7.4% and then 6.9%.
Staff described the preference network as a change that requires providers who participate on both the med and value plans to bill at the lower (value) rate when both are available; staff said this would not change which hospitals or providers employees use. The presenter said, "So going with the 6.9% is the the better option for the employees."
Why it matters: staff explained that reaching a 5% premium increase without changing plan cost-sharing would require substantially higher deductibles or out-of-pocket maximums for employees, which staff estimated could increase out-of-pocket exposure by thousands of dollars for some enrollees. The presenter said the payroll premium change would likely add roughly $100—20 a year per employee but raising deductibles could add $1,000—2,000 in potential out-of-pocket exposure.
Details: SelectHealth initially proposed an 8.9% increase; staff asked for a no-bid guardrail at 5% and received a sequence of counteroffers ending at 6.9% under the preference network design. Staff recommended staying with SelectHealth at 6.9% because it would likely yield lower out-of-pocket cost for many employees compared with a smaller premium increase achieved by making employees take on higher deductibles. Staff said they would only take the renewal out to bid if commissioners said they would not accept the 6.9% scenario.
Next steps: staff reported no current plan to solicit bids if the commission accepts the preference-network 6.9% offer; they said switching to a lower-premium option by adjusting deductibles remained an alternative but was likely worse for most employees' out-of-pocket exposure.
