Lavaca County approves health-plan renewals as medical costs drive 5.7% rate increase

Lavaca County commissioners on June 9 approved renewal of the county's employee health plans, voting to adopt medical plan 700-G2 with a $30 copay and a $680 deductible (Rx plan 4AG2) and to accept a 5.7% overall rate increase for medical and prescription coverage.

The vote came after a presentation from Daniel Brown, a broker with the Summit Agency, and Lacey Jones, benefits consultant for the TAC Health and Employee Benefits Pool. Brown told the court that Lavaca County paid $1,956,245 in premiums over the last 12 months while TAC and Blue Cross paid $2,177,000 in claims, producing a 99% loss ratio. Brown said of that figure, "It's not ideal." Jones said the pool board found the full funding need at 6% and the county was allocated 5.7% based on its experience: "The board found that the full needed amount is 6 percent."

Why it…