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Stark County approves 7% health-insurance budget increase, adds longevity subsidy

September 16, 2025 | Stark County, North Dakota


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Stark County approves 7% health-insurance budget increase, adds longevity subsidy
Stark County commissioners on Monday approved changes to the county employee health plan that county officials said are intended to limit future premium spikes while cushioning longtime employees.
Human Resources Director Joetta Piercy told commissioners that the county’s insurance program had paid out more in claims than it collected in premiums, producing a proposed 19.3% renewal increase if the plan remained unchanged. "We have incurred more, we have paid out more in claims than we have paid in in premiums," Piercy said when presenting the renewal options. She recommended a mix of plan design changes — higher deductibles and out-of-pocket maximums and modestly higher office and emergency-room copays — as a way to control premium growth.
The board voted to place a 7% premium increase in the 2026 budget and to add a longevity subsidy that will reduce employee premium contributions over time: 2.5% off the employee premium every five years for single policies and 5% every five years for family policies. Commissioner White moved the motion and Commissioner Claris seconded it; a roll-call vote recorded aye from Commissioners White, Claris, Franchak, Marsh and the chair. The action will take effect with the county’s 2026 budget cycle and the new premiums, expected to begin in January 2026.
Why it matters: Piercy emphasized that the county’s low-deductible, low-copay design had produced heavy claims: 32% of individual-plan members met the current $500 deductible and 29% of family plan members met the $1,000 family deductible, she said. Those utilization levels are driving insurers’ requests for higher premiums. The commission’s approach tries to limit the near-term budget hit while shifting some cost responsibility toward higher cost-sharing for frequent users.
What the county approved: The board chose the middle lane of options presented by staff — a smaller premium increase than the insurer initially quoted, paired with a longevity premium-offset program meant to ease the effect on long-tenured employees. Commissioners discussed alternatives, including raising employee-paid share of the premium and switching to a different pool; Piercy said the county had compared an alternate pooled option but that it offered fewer plan tiers and did not include a high-deductible HSA alternative. The board directed that the longevity credit would be applied based on each employee’s benefit-eligible date.
Costs and next steps: Commissioners and staff noted several open questions: how much of any premium increase the county will subsidize versus employees, whether the county will adopt some plan-design changes (higher deductibles or copays) to reduce future premiums, and the timing of insurer billing (premiums are calculated in December and applied in January). Piercy said staff will run the finalized numbers for the board and incorporate the change into the 2026 budget.
Context and dissent: Several commissioners voiced concern about a reported 19.3% increase the insurer had quoted if design changes were not made. “I have a hard time going we just can’t go down this road of a 19% increase,” one commissioner said during debate, arguing the county needed to press for plan changes that make costs sustainable. The majority instead chose the compromise that places budgeted increase at 7% and adds the longevity subsidy.
Implementation: The board recorded the measure as part of its 2026 budget adoption work. Staff said the new premiums will be reflected in payroll deductions beginning with the insurer’s December billing that covers January 2026 coverage.

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Scribe from Workplace AI
Scribe from Workplace AI