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HR: group health plan needs reserves; property/casualty fund shows a shortfall requiring higher internal rates
Summary
Human Resources reported a self-insured group health plan covering roughly 7,500 lives and proposed a 6% increase in employer contributions for fiscal 2026; property and casualty reserves declined and HR recommended rate increases for workers’ comp and liability to rebuild the fund.
Human Resources staff briefed Brevard County commissioners on March 27 about the county’s self-insured group health plan and its property/casualty (risk) program, reporting that the health fund requires a proposed 6% employer contribution increase for fiscal 2026 while the risk fund recorded a deficit in fiscal 2024 and will need higher internal chargebacks to departments.
Melissa (HR presenter) said the county’s group health plan is fully self-insured and covers approximately 7,500 lives (about 4,000 employees and 3,300 dependents). She said reserves built up historically but declined after the county reduced its employer contribution rate in 2017; the county increased employer contributions in 2022 and 2023 and is budgeting a proposed 6% increase for fiscal 2026. She said no change to employee contribution levels was proposed for 2026. The department said recent high-cost claims and pharmacy costs have pushed the plan’s incurred trend to about 4.5% through the most recent reporting period.
On the risk program, HR’s risk manager reported fiscal 2024 revenues of about $13 million and claims of roughly $8.3 million with a fiscal 2024 deficit of about $3.7 million and a fund balance entering fiscal 2025 of about $6.2 million. HR staff and brokers advised expecting premium increases in non-property lines generally in the 8–15% range (averaging ~12%), and staff cited the potential for significant change if the Florida Legislature increases sovereign-immunity limits (House Bill 301 was under committee consideration at the time of the meeting). HR recommended employers’ contribution increases to restore reserves and said the county would continue pharmacy and medical procurement reviews (including a pharmacy audit and an RFP process) to pursue cost savings.
Commissioners asked clarifying questions about employee premium levels and fund balances; HR said monthly employee contributions vary by coverage tier (employee-only payments were cited in the presentation at about $37.80 per month for the lowest tier, family rates higher). HR said it will roll out a modernized benefits-enrollment system in time for fall open enrollment and that the benefits advisory committee recommended a pharmacy audit and an RFP for pharmacy and medical plan administration to implement in 2027.
No formal board action was requested in the meeting; HR said recommended employer-contribution and benefit changes will be presented as part of the budget process and future plan procurement actions.
