Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Paid Family Leave topic
No spam. Unsubscribe anytime.
Hubbard County board authorizes RFP to explore private insurance for new paid family leave law
Summary
After extensive discussion about costs and administration, the Hubbard County Board voted to authorize a request for proposals to see whether private insurers can offer coverage for the state'mandated paid family and medical leave program at lower cost than the state plan.
Hubbard County commissioners voted to authorize a request for proposals to solicit private insurers that could provide the new state-mandated paid family and medical leave benefit, after staff and commissioners discussed costs, timing and administrative complexity.
The board directed staff to advertise an RFP so the county can compare fully insured private plans with participation in the state plan. County staff told commissioners the state implementation includes a payroll tax that will begin in 2026 and that the county'level employer share is expected to be roughly half of the total tax; a legislative handout in the packet identified the county'level cost, on the county payroll, at about $80,000 a year.
Supporters of the RFP said the process would let the county compare premiums and administrative options; staff emphasized that issuing the RFP does not commit the county to pick a private insurer and that the county must advertise the RFP by May 5 to meet implementation timelines. Board members and staff discussed actuarial uncertainty: if actual claims exceed estimates, premiums or payroll taxes could rise the next year whether the county stays with the state pool or buys private coverage.
Commissioners and staff also spent substantial time on operational concerns: how paid leave would interact with existing unpaid Family and Medical Leave Act (FMLA) protections, whether employees could use paid time off to supplement benefit payments, and which county operations (for example, dispatch and jail staffing) have limited shift flexibility and could require extra overtime or additional hires to maintain services while employees are on leave.
The board voted, by voice, to authorize the RFP and to let the county'wide benefits administrator include the paid leave coverage in the ancillary benefits solicitation for multiple counties and cities. Staff said the RFP will request quotes that show premium rates and any options to bundle the paid-leave coverage with other ancillary benefits.
Why it matters: The law creates a new payroll-based benefit paid through a shared fund; the county will begin paying its share on wages in 2026. The board'level decision to test private market options could affect county payroll costs, administrative workload for human resources and the county'level budgeting and staffing decisions in coming years.
The board also asked staff to return with further clarifications on administrative process, interaction with existing leave banks, and whether small-employer adjustments at the state level change the county'level risk profile.
