Woodbury County raises employee health contributions citing new pharmacy law

The Woodbury County Board of Supervisors voted unanimously to raise employee contributions to the county health fund effective July 1, 2025, increasing the family rate by $40 per month and the single rate by $20 per month.

Human resources director Melissa Thomas told the board the change responds in part to a recent state law. "Last Wednesday, the governor signed Senate File 383 into law," Thomas said. "One of the provisions was for each script that is dispensed, there is a $10.68 fee." Thomas said the county's plan filled more than 13,000 prescriptions last year and that other provisions of the law will shift rebate allocation and limit plan designs that control prescription costs.

The increase is intended to cover higher pharmacy costs through the end of the calendar year; Thomas said the county will issue a request for proposals for pharmacy benefit manager services and revisit plan design on Jan. 1 if needed. "We are also looking at an RFP for a pharmacy benefit manager and to see what they can do for us in the future," she said. Thomas asked the board to add an effective date of July 1, 2025, to the motion.

Supervisor [Vintinger] moved approval and Supervisor Nelson seconded. The motion passed 5-0.

County staff and supervisors noted the increase may be temporary and could be revisited depending on the results of the RFP and further analysis of how the new law affects other self-insured plans in Iowa.

Details recorded in the meeting indicate the board approved the specific employee contribution increases in the backup materials on file with the county auditor.