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County administrator to solicit market proposals for employee health insurance
Summary
County staff received commission consensus to request proposals for the county's next health insurance plan after receiving a steep preliminary renewal; staff will continue negotiations with current carrier while testing market options.
Berkeley County commissioners gave county staff consensus on March 13 to put employee health insurance coverage out to bid and explore market options for the plan that expires June 30.
County staff said last year’s renewal process resulted in a negotiated outcome that passed about a 4% premium increase to employees after an initial 25% renewal demand from the incumbent carrier. Staff and administrators told commissioners the county’s employees have reduced utilization and the county’s market position improved, but that carriers again proposed substantial increases in renewal pricing this year.
County staff told commissioners the county currently spends about $3.7 million annually on health-care premiums and maintains an HRA balance around $1.3 million. The administrator said he was prepared to publish an RFP as soon as the next day so the county can compare the incumbent’s renewal to competitive offers; staff will continue negotiations with the incumbent while soliciting proposals.
Why it matters: Health-care premiums are one of the county’s largest recurring costs and affect employee take-home pay when employers pass part of the increase to staff. Commissioners said they supported soliciting market options to test the price and coverage available.
Next steps: County staff will issue an RFP and continue negotiating with the current carrier; staff said they will ensure continuity of coverage for employees regardless of whether the county changes carriers.
