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Health-plan adviser briefs commissioners: county plan remains solvent but needs ~9% funding increase
Summary
Mark Browder of Mark 3 briefed the board on county health-plan performance, stop-loss distributions and rebate credits; he recommended approximately a 9% funding increase and outlined diabetes and medical weight-loss programs used to reduce long-term claims.
Mark Browder of consultant Mark 3 presented an annual review of Wayne County’s self-funded medical plan, reporting that while the plan has been stable due to favorable contract terms and negotiated rebates, claims acceleration — particularly for cancer pharmacy, heart disease and musculoskeletal conditions — means the county should plan for a funding increase of about 9% for the coming renewal cycle.
Browder reviewed the county’s participation in an intergovernmental health-care alliance (IHA) and a Blue Cross stop-loss block that yielded distributions back to members. He noted a $2.7 million distribution for the 2022–23 reconciliation and another larger block reconciliation (referenced as $4.4 million) that benefits block participants; Wayne County’s share of earlier distributions was described as approximately $290,000 (2022–23) and roughly $226,000 (23–24 reconciliation). Browder said additional negotiated rebate payments through the IHA totaled about $745,000 in one plan year; combined credits helped offset an otherwise negative position and kept the plan in a positive posture.
Browder said the county’s net fixed cost of running the plan had fallen (an asserted reduction of roughly $500,000 versus earlier years), but that nine high-claim individuals remain a major driver of current-year claims. He called the county’s diabetes-management and medical weight-loss programs successful retention and cost-management strategies, noting employees who engage in those programs show better claim outcomes and that the programs have been used as workforce-retention tools.
Browder recommended a roughly 9% funding increase for the plan to keep pace with accelerated claims and to avoid a return to double-digit renewals seen elsewhere in the public sector pool market. He described broader market instability as other pooled public-sector arrangements have closed and urged continued attention to funding adequacy and plan-management strategies.
Commissioners praised the county’s relationship with consultants and said the benefits strategies have helped contain costs. Browder and county staff will return with renewal materials to support budget decisions.
