Trustees adopt limited premium change: 2% overall uplift, one‑pay‑period premium holiday in December 2025

Trustees reviewed actuarial analyses, audited financials through December 31, 2024, and a Gallagher budget model. Actuary Chris Marshall recommended an 8.3 percent premium increase based on a 24‑month blended experience projection and an assumed medical/prescription trend. Gallagher and county finance presented a set of options to close the projected funding gap; after discussion trustees approved a more conservative approach.

By recorded action trustees voted to: (1) set plan premiums to reflect a 2 percent overall increase that closes roughly one quarter of the recommended 8.3 percent funding gap and (2) authorize a one‑pay‑period premium holiday in December 2025. The trustees also authorized Gallagher to proceed with reinsurance negotiation and to work with HR to finalize vendor contracts effective July 1, 2025. County staff explained that the trust is projected to finish the current fiscal year with an above‑recommended fund balance; trustees said they preferred a measured, incremental approach to premium changes and to share costs between employees and county departments.

Trustees asked staff to return at future meetings with the actuarial recommended reserve when final stop‑loss quotes arrive. Staff said reinsurance pricing often arrives late in the renewal cycle and that the budget assumes a prudent placeholder for stop‑loss trend. The motions passed by voice vote; staff will build the approved rates into the county budget and submit them for Board of Supervisors approval.

Ending: The trustees’ choice was to take a smaller, incremental step toward funding stability while preserving some fund balance cushion. HR and Gallagher were authorized to execute contracts and finalize reinsurance renewals subject to county‑attorney review and procurement rules.