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Boone County eyes adding HSA and high-deductible PPO to blunt nearly $500,000 insurance bump
Summary
Administration told the board the county faces a projected 14.8% health-insurance renewal increase (about $484,000) beginning July 1 and proposed offering a high-deductible HSA plan and an additional high-deductible PPO to reduce costs; staff recommended a special county-board meeting next week to approve plan additions.
Boone County administration told the Committee of the Whole on April 3 that the county faces a sizable health-insurance premium increase beginning July 1 and recommended adding two alternative plans — a high-deductible HSA and an additional high-deductible PPO — to give employees lower-cost options and reduce county exposure.
Ricky (benefits staff) and County Administrator Becky told the board the county is facing a 14.8% renewal increase effective July 1 (the county's plan year runs July 1–June 30), which equates to roughly a half-million dollars out of the county general fund if no changes are made. "If we don't do anything, it's half a million dollars," Becky said.
Staff recommended adding an HSA-qualified high-deductible plan and a second high-deductible PPO as alternatives to the current negotiated PPO (which cannot be changed mid-contract). The administration plans to work with the pooled broker (IPBC) on education and incentives to encourage employees to consider lower-premium options. Examples discussed included employer seed contributions to HSAs (staff discussed possible quarterly deposits and a suggested $1,250 family example for initial funding) and communications from IPBC to employees about plan choices.
Becky and benefits staff emphasized that certain cost drivers — notably new GLP drugs and other high-cost medications — cannot be fully addressed until the January 1 plan-year changes allowed by IPBC; the county therefore faces a six-month window of limited flexibility on some prescription-management levers.
Because adding plan options before July 1 requires administrative work, staff requested a special county board meeting the week before the May finance committee so members could take an action in time for the July 1 effective date. No formal vote was taken April 3; staff will present plan documents and employer/employee cost-share proposals at a special meeting and the regular finance board meetings.
Ending: The board endorsed the approach of pursuing additional plan options and directed staff to prepare rates, employee-contribution scenarios and an education rollout; a special county board meeting was proposed to act before the July 1 renewal.
