Clinton County council delays final budget adoption after 53% health-insurance renewal; approves flat 2% pay increase to help cover rising premiums

Clinton County Council members voted to change the county'wide raise plan to a flat 2% and postponed final adoption of the 2026 budget after receiving a health-insurance renewal that rose 53% from the prior year.

Council members said the county's employee health plan showed a 153% claims loss ratio through 2025, meaning the insurer was paying $1.53 in claims for every $1.00 in premium collected. Benefits staff and the county's consultant provided alternative plan designs that would reduce the renewal but would require employees to accept slightly less-rich benefits than in prior years.

The council voted 5-0 to make the flat 2% pay increase the county's raise policy for the year; council member Carol made the motion and Jeff seconded. Council members said switching from the previously discussed tiered plan (1% / 2% / 2.5%) to a uniform 2% would free roughly $100,000 across the pay pool. That, together with the potential elimination of the county's annual HRA contribution (up to $1,125 for family plans), also estimated at about $100,000, are two of the ways the county said it could help fund higher premiums while keeping employee out-of-pocket increases smaller.

Council President (first name recorded as Alan) and benefits staff said the revised plan designs still imply a premium increase near 20% rather than the 10% the council had budgeted. The council directed staff to finalize plan selection and the funding methodology and to bring the completed budget ordinance for council adoption on October 24 (advertised as required by state rules), subject to the state gateway advertising window.

In addition to the raise decision, the council voted to postpone two separately advertised budgets'for Wildcat Solid Waste and the Frankfort-Clinton County Airport Authority'until an all-in adoption on the next advertised date to avoid taxpayer confusion. That motion to table the two budgets passed 4-0; one council member had stepped out during that vote.

Council members emphasized they will attempt to spread premium increases between the county and employees rather than placing the entire increase on staff. Benefits consultant Bob Pia (LHD) and county staff walked the council through eight years of historical premium increases (an average of under 1% annually) to frame the current spike as a recent anomaly driven by claims experience.

The council will finalize the budget ordinance once staff plugs the chosen plan and funding adjustments into the ordinance and completes required state advertising. The council noted several smaller offsets already identified in departments and asked department heads to continue looking for budget-neutral options to reduce pressure on the health plan.