Mohave County trustees set FY2025 benefit rates: 2% premium increase, one-payroll 'premium holiday' in December

Trustees of the Mohave County Employee Benefit Trust at their annual trustee renewal meeting approved a partial increase to employee health-care premiums and a one-payroll premium holiday for December 2025 as they set rates and benefits for the 2025–26 plan year.

The board voted to adopt an overall 2 percent increase in premium revenue for the trust, equal to roughly one-quarter of the actuarial funding gap presented earlier in the meeting; the trustees directed that the resulting increase be split roughly evenly between employees and departmental (county) contributions. The trustees also approved a one-pay-period premium holiday to occur in December 2025 so employees would not pay premiums for that pay period.

Mohave County and its trustees said the changes respond to projected increases in medical and prescription costs while preserving a multi‑million-dollar fund balance and keeping plan changes modest for the membership.

Trustees reached the decision after hearing a detailed review of calendar-year 2024 claims, vendor presentations and actuarial funding options. Gallagher actuaries recommended an 8.3 percent funding increase to reflect a blend of two years of claims experience and forward trend assumptions. Trustees chose a smaller, phased approach—closing a portion of the gap this year and reviewing experience next year—citing a healthy reserve position and the desire to limit near‑term cost shocks for employees and departments.

The board read and approved the monthly premiums to become effective July 1, 2025. Under the trustees’ motion the monthly rates for the EPO plan will be: employee only $103.64; employee + spouse $314.30; employee + child $277.37; employee + family $451.77. For the county’s high‑deductible (HDHP) option the monthly rates will be: employee only $88.52; employee + spouse $264.88; employee + child $235.57; employee + family $375.23.

Speakers and evidence Rick Siphalmo of Meritaine Health opened the meeting’s technical review of the medical plan and emphasized both positive and worrying signs in the claims: per‑member‑per‑month spend was down about 2.5 percent, and the plan’s overall per‑member costs remain below the vendor book‑of‑business benchmarks. But he warned preventive services were down sharply: “No. That is not a good thing,” he said when asked whether a 12 percent fall in preventive care was desirable. Siphalmo and others noted 19 members had individually exceeded $100,000 in claims in 2024 and those high‑cost claimants continued to represent a large share of total plan costs.

Blue Cross Blue Shield of Arizona (Rachel Martin) and Meritaine (Siphalmo) described deep network discounts: BCBS reported a 64.4 percent discount on about $39.7 million billed to the carrier in a recent 12‑month period and said discounts delivered $25.5 million in savings to the trust; Meritaine reported similarly strong negotiated discounts outside Arizona.

Pharmacy presentations from Navitus (Lisa and Brian) showed relatively low overall pharmacy plan costs compared with the PBM book of business (plan paid per member per month $68.73), but the trustees heard specialty drugs make up nearly half of specialty plan paid (49.2 percent) and that use of GLP‑1 class drugs (e.g., Manjaro, Ozempic) was rising. Navitus staff described utilization controls to require a documented Type 2 diabetes diagnosis for GLP‑1 coverage and explained manufacturer rebates materially reduce net plan spend on some high‑cost drugs.

Wellness and vendor changes Trustees heard that engagement with two current wellness vendors was low: the Livongo chronic‑condition coaching program and the Navigate wellness portal had far fewer participants than expected. Following a presentation from Philip of Digby Health—whose “precision biology” program uses genetics, gut microbiome testing and continuous glucose monitoring to personalize nutrition and metabolic care—the board approved replacing Livongo with Digby and terminating the Navigate portal contract. Gallagher staff advised that those two vendor changes would be roughly budget neutral in year one, and the board approved the replacements and contract signings to be carried out by human resources and Gallagher.

Other vendor and benefit actions Trustees also approved these actions during the meeting: - Authorized Gallagher to finalize and bind the stop‑loss (reinsurance) renewal effective July 1, 2025, and to negotiate final terms with county HR staff. - Approved a new contract with Assured Imaging/Women’s Wellness (AIWW) to resume on‑site skin‑cancer screenings at $220 per screening, a reduction from a previously proposed higher price. - Approved renewal proposals from Gallagher consulting and from Oaks/Securian for life and disability (three‑year rate hold for life insurance products presented by Bill Oakes).

Why the decisions matter Trustees said the modest increase and the one‑payroll holiday aim to preserve the plan’s reserve while limiting short‑term disruption for employees and county departments. The wellness vendor changes reflect trustee interest in programs that both engage members and target high‑cost chronic drivers; trustees noted Digby’s model could produce clinical and financial improvements over time but that measurable return on investment would need to be tracked after implementation.

What’s next Gallagher and county human resources will finish contract language and sign vendor agreements as approved by the trustees. Human resources and Gallagher will lead member communications and open‑enrollment materials for the July 1, 2025, plan changes. Trustees said they will review claims experience and the fund balance in 12 months and consider additional adjustments if needed.