Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the County Health Insurance topic
No spam. Unsubscribe anytime.
County auditors warn of insurance fund deficit; GLP‑1 drugs cited as major cost driver
Summary
County staff reported a projected shortfall in the county health insurance fund and identified high-cost GLP‑1 medications (Ozempic, Wegovy, Mounjaro) as a primary driver. The court acknowledged the presentation and was told a stop‑loss decision will be taken at a special meeting.
Cameron County officials on Sept. 9 were presented with updated claims and enrollment figures for the county health insurance plan and warned of a projected deficit driven in part by high-cost GLP‑1 prescription drugs.
Internal Audit Director Lizetta Laffa told the court the agenda included general claims totaling $9,764,379.97, medical claims totaling $685,263.28, and a payroll estimate for Sept. 12 with a gross of $4,555,197 and net pay estimated at $2,837,303. Laffa presented cumulative medical and pharmacy claims for October 2024 through July 2025 and projections for August and September.
Roger Gossett, lead consultant for Value Risk Consulting, told the court the plan faced roughly a $22,800,000 deficit figure. He said much of the rising prescription cost is driven by GLP‑1 drugs, which the county is paying about $1,400 per monthly prescription and which about 200 plan members are taking.
Gossett said the county is examining containment measures and expecting additional expensive drugs from manufacturers. “We are coming up with some recommendations how we can kind of contain that cost,” he said, and suggested changes such as formulary controls and alternative procurement that could lower costs; staff estimated that alternative sourcing could save on the order of $900,000 per year if implemented and allowed by the carrier (Aetna).
County staff said stop‑loss renewal materials are due Sept. 17 and that the court will be asked to act at a special meeting on Sept. 30 (the court referenced bringing updated figures at the regular meeting on Sept. 23). The court moved to acknowledge the presentation; the motion was made by Commissioner Lopez and seconded by Commissioner Reese and carried with no recorded opposition.
Officials also discussed non‑claim steps the county could pursue to control costs, including employee wellness incentives or gym subsidies, but noted such programs would require funding decisions and that some savings may come from vacant county positions. Staff reported 548 employees had completed enrollment out of 1,788 total employees and that the county currently has about 102 vacant general-fund positions.
No stop‑loss contract was executed at the Sept. 9 meeting; staff said they expect updated carrier quotes next week and will return to the court with a recommendation at the special meeting.
