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Gaston County will absorb 7.4% health insurance renewal and remain with Capital Health Plan
Summary
The Gaston Board of County Commissioners voted to keep the county's current Capital Health Plan and have the employer absorb a 7.4% premium renewal. Commissioners directed staff to pursue a formal RFP and market comparisons for future years after finding no active broker/agent contract on file.
The Gaston Board of County Commissioners voted to remain with the current Capital Health Plan and for the county to absorb a 7.4% renewal premium increase, the board heard at a special meeting. The insurance committee recommended staying on the Capital selection plan and the board accepted that recommendation in a recorded vote (yes: 5, no: 0).
County staff told commissioners that Capital Health Plan presented a renewal with a 7.4% premium increase. The insurance committee, which reviewed the renewal, recommended keeping the same four-tier plan. Staff said the county currently pays 100% of single coverage, about 72.93% for employee-plus-spouse and employee-plus-dependent tiers, and 80% of family coverage; the committee recommended the employer absorb the proposed 7.4% increase.
The board considered three options that staff presented: (1) the county absorb the full 7.4% increase, (2) employees absorb 25% of the increase with the county covering 75%, and (3) a 50/50 split of the 7.4% increase. Staff and the county administrator recommended option 1, and the insurance committee voted unanimously to remain with the current plan and have the employer absorb the increase.
Commissioners asked for a market comparison and for staff to determine whether the county's broker or agent arrangement complied with procurement rules. Staff said they are preparing comparisons with other carriers (examples cited included Florida Blue) but that the timing did not allow completing a formal RFP this year. A staff member said the county currently appears to be operating without a formal contract on file for either the broker or the agent and recommended issuing a formal RFP next year to bring the procurement into statutory compliance.
County staff estimated the county's total health-plan cost this year at about $2.1 million. Commissioners asked whether broker fees were paid separately; staff said the broker and agent fees appear to be included in the CHP rates but that staff did not have a detailed breakdown or a contract on file showing a separate broker fee. The county attorney warned that terminating any implied relationship tonight could create legal risk because the county had received services and benefits under the historic arrangement.
Board members directed staff to begin the RFP process and return with comparative quotes and a clearer breakdown of any broker/agent fees before the next budget cycle. Staff said a full RFP and vendor review typically takes several months and the county does not have time to complete that process for the current plan year.
A county staff member summarized the committee recommendation and process: "On the insurance renewal rate offered by Capital Health Plan to the board were reviewed by the insurance committee who voted unanimously to remain with the current plan," and staff recommended the board accept that recommendation.
County Attorney (paraphrasing legal/procurement requirements) reminded the board that, "you need to go out with a bid process, with a full RFP process. And in that, you would get these responding companies ... and then you would make a review of those responses and then make a choice at that point in time. But that takes about 3, 4 months to do that process."
