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County says health-insurance trust increase pared to 4.5% after actuarial recommendation; semaglutide costs flagged
Summary
County manager reported the Arizona Local Government Employee Benefit Trust actuary recommended a 5.9% increase to health-insurance costs for FY25-26, but the county will implement a 4.5% increase; officials said semaglutide medications are a major cost driver and the trust limits coverage of those drugs to diabetics.
Gila County Manager reported to the Board of Supervisors that the county's health insurance trust will implement a 4.5% overall premium increase for fiscal year 2025–26 after an actuary recommended a 5.9% increase.
Manager Menlove said county participation in the Arizona Local Government Employee Benefit Trust and prudent reserve practices helped reduce the increase passed to employers and employees. He identified semaglutide-class drugs (GLP-1 medications promoted for weight loss) as a leading cost driver for the trust. "One of the biggest issues that we have currently regarding cost drivers in [the] health insurance trust is the semaglutides," Menlove said, adding the trust currently limits prescribing of those drugs to diabetic patients.
Menlove said the county has banked reserves in recent years and that the county typically passes a portion of premium increases to employees under existing contribution splits. He said the final contribution amounts will be addressed in upcoming county budget discussions. Menlove also reported he will be traveling for training and to Washington, D.C., and that Deputy County Manager O'Driscoll is authorized to act as county manager while he is out of the county.
No board action was taken; the report was informational and will feed into the county's budget process.
