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County budget panel flags 10% health-insurance cost increase; recommends committee review, small short-term county share
Summary
County budget staff and commissioners discussed a projected 10% rise in employee health insurance costs for 2026, proposed approaches to share the increase with employees, and a temporary reduction to the employee-benefits cash reserve while an employee committee reviews plan options.
Bourbon County budget staff and commissioners reviewed preliminary figures showing a potential 10% increase in the county's health-insurance costs for 2026 and discussed short-term steps while a staff-and-commission-appointed benefits committee studies longer-term options.
Katie (county staff) and commissioners noted that the county-wide employee-benefits account covers multiple items (health insurance, workers’ compensation and retirement contributions) and that the projected increase in 2026 would add roughly $516,000 to total employee-benefit costs in the draft budget. The group described that the increase in health insurance — the single largest benefit line — is an early estimate supplied by the county’s broker.
"The increase in health insurance alone is gonna be half a million dollars," said one commissioner during the discussion of options. Staff proposed three short-term approaches: (1) maintain county cost-sharing and allow an employee benefit committee to recommend plan changes during 2025 open enrollment; (2) split the projected 10% increase so the county absorbs 5% and employees absorb 5%; or (3) require employees to absorb the full increase. Several commissioners and staff said they preferred a partial share by employees while the committee works on plan design.
Budget staff said there is an employee-benefits cash reserve included in the draft — a $300,000 line in the 2026 budget proposal — and recommended reducing that reserve modestly to avoid an immediate mill-rate increase. Commissioners agreed, preliminarily, to reduce the reserve target to $175,000 (a reduction intended to lower the near-term mill impact) while directing staff to establish a benefits committee that includes a member of the budget review team.
Staff and commissioners asked that the insurance broker and county HR be asked to present detailed, comparable plan pricing, historical rates and alternatives at the next budget meeting. Commissioners also discussed wage strategy in parallel with benefits reform, noting that pay and benefits are interdependent when recruiting and retaining staff.
Ending: Commissioners kept the employee-benefits line under review, agreed to create an employee-benefits committee with budget-team representation, and asked staff and the broker to deliver detailed plan data for the next budget workshop.
