Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Employee Benefits topic
No spam. Unsubscribe anytime.
Board approves proposed health-plan increases after debate over plan structure
Summary
The Board approved proposed health-plan contribution changes for fiscal year 2025–26: a 33.3% increase for PPO Option A, 15% for PPO Option B and no increase for the high-deductible plan, after staff explained the deficit history and timing constraints.
On the consent calendar the Board approved a benefits recommendation to set FY2025–26 health-plan contribution levels after hearing explanation from Benefits Manager Carla Vasquez.
Vasquez told the board the county and its benefits consultant, Segal, reviewed plan experience and the earlier consultant recommendation was to increase PPO Option A by 52.5% because that plan had been running a persistent deficit. After internal discussion the county presented a lower recommendation for the Board: a 33.3% increase for PPO Option A, a 15% increase for PPO Option B and no increase for the high-deductible plan for the coming fiscal year. "Plan A has been running at a deficit for multiple, multiple years," Vasquez said, explaining the actuarial basis for the recommendation.
Board discussion focused on the structure of the cafeteria plan: several supervisors said giving employees multiple plan choices encourages adverse selection because members choose the plan that appears cheapest for them rather than the plan that is healthiest for the trust pool. One supervisor urged stronger education to move younger employees into the high-deductible option and raised the prospect of reducing the number of offered plans in future years. Vasquez said the timeline required the county to make a decision quickly so open enrollment could begin April 1 and the new coverage would be effective July 1.
Formal action: On a motion and second the Board approved the benefits recommendation as presented. The vote was taken by voice; no roll-call tally was recorded in the transcript.
What was not resolved: Several supervisors asked benefits staff and the Benefits Trust team to study longer-term options, including fewer plan choices, stronger employee education about the high-deductible option and potential structural changes to limit adverse selection before the 2026 plan year.
