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Clermont County recommends modest employee contribution, keeps benefits vendors despite 9.9% medical trend
Summary
County staff reported a 9.9% medical trend from Anthem after the countys first year in the County Employee Benefits Consortium of Ohio (SEBCO). A benefits committee recommended no plan design changes, a 3% employee contribution increase and vendor changes for vision and life/disability.
Clermont County commissioners heard a presentation Sept. 17 on the countys health insurance renewal, in the county's first SEBCO (County Employee Benefits Consortium of Ohio) renewal year. Benefits consultant Steve Ferguson of USI told the board the market medical trend for 2026 came in at 9.9 percent and outlined plan and vendor options to reduce county costs.
Ferguson said the county paid about $15.3 million in premiums for 2025 and, after administrative fees and HSA contributions, the total was roughly $15.9 million. He said run-out claims and prior-year funding increased the countys 2025 funding to about $17.4 million, which made next years county cost look roughly flat this year but would not be repeated in 2026.
"It's an honor to stand before the board today," Ferguson said as he summarized the committees review and alternatives presented to the health care committee.
Why it matters: a near-double-digit medical trend would increase premiums paid into SEBCO. The benefits committee considered modest plan design changes, higher employee contributions, and vendor switches for ancillary coverages to limit the county's exposure.
Most of the countys employees participate in the premium co-pay plan (about 600 employees), with roughly 300 in the HSA plan and about 117 in the basic co-pay plan. Ferguson said three plan-change options were modeled: minor co-pay adjustments; deductible and emergency-care co-pay changes; and a more comprehensive package changing benefit percentages, deductibles and out-of-pocket maximums. The largest modeled savings from plan design was about $92,000, roughly 0.5 percent of county spend.
Given that small percentage and the disruption to employees, the healthcare committee recommended no plan design changes for 2026. Instead, the committee recommended a 3 percent employee contribution increase to share costs. Ferguson said a 3 percent contribution would reduce the countys increase by roughly $65,000; a 5 percent employee contribution was also modeled and would offset about $108,000.
The committee also recommended vendor changes for ancillary benefits. Because of a first-year rate cap already negotiated with MetLife, the dental plan will remain with MetLife. For vision, a bid from EyeMed was about 9.7 percent lower than the countys current premium and included a four-year rate guarantee; the committee recommended moving to EyeMed. For life and disability, Mutual of Omaha proposed roughly an 18 percent reduction in cost and the committee recommended switching to Mutual of Omaha for a three-year term.
Commissioners asked about longer-term pressures. Board members noted the county has absorbed about $3.7 million of increases over the last six years and emphasized the unpredictability of future trends. Ferguson warned that the favorable funding effects in 2025 (the run-out reserve) likely would not recur in 2026.
No formal vote was required on the presentation; the board moved on after hearing the committees recommendation.
Ending: The board accepted the presentation and did not direct immediate plan design changes. The county will implement the recommended 3 percent employee contribution change and the described vendor moves pending administrative steps and contract finalization.
