Oakland County reviews 2026–2030 benefits roadmap, proposes new employee contribution structure and HSA changes

Oakland County Human Resources presented proposed updates to its five-year benefits roadmap for 2026–2030 and asked the board to recommend forwarding the proposal to the finance committee.

The HR presenter said the county’s fringe benefits fund has grown 5–8% annually and singled out prescription drug costs as the fastest-rising driver, noting roughly $4,000,000 in prescription spending in the first four months of the plan year for certain drugs. To address long-term sustainability, staff proposed a restructured employee contribution chart, a fully funded Health Savings Account (HSA) option for 2026, expanded opt-out waivers for dependents, and other mid- and out-year plan changes.

The HR presenter said the intent of the changes is to preserve competitive benefits while keeping employee contribution rates below typical market levels. “When it comes to benefits, we’re in a Bentley, but we’re heading for a cliff. I want to put us in a Cadillac we can drive forever,” the presenter said.

Under the proposal staff described, contribution tiers would expand from three family-composition buckets to five (including separate categories for single adults, single parents, multiple children, spouses/other adults). The county would keep most employee contributions at or below about 10% of actual plan cost and below half of typical market contributions, staff said. The proposal also preserves contractual limits in the current United Auto Workers (UAW) bargaining language that cap increases for employees with a child on the plan to $10 or less and any employee with a spouse to $35 or less.

To make a $0 employee-premium option viable, staff proposed a high-deductible plan paired with an HSA that the county would fully fund in the initial transition year (2026) to meet that plan’s deductible. Staff said the county currently contributes $1,000 for single coverage and $2,000 for family coverage under its high-deductible arrangement and that the HSA vehicle is immediately vested and portable. HR staff also described a plan to front-load county HSA contributions so employees facing early-year costs would be protected.

Dental and vision changes were included. Staff described a new buy-up “premier” dental option that adds adult orthodontics (up to $2,000 per individual) and increases base annual dental coverage from $1,000 to $1,500, funded by buy-ups or revised plan design.

For 2027 and later, HR proposed revising pharmacy tiering into a five-tier design that would add two specialty-drug tiers with capped dollar amounts for the highest-cost medications rather than a straight percentage co-pay. Staff said the county will continue to use available assistance programs (Blue Cross concierge services, GoodRx and other tools) for employees with high-cost prescriptions.

Commissioners asked for clarification on respite care and other benefit expansions; HR staff said the respite proposal under consideration would help caregivers find and receive in-home care rather than being a direct cash reimbursement. Staff also described ongoing employee outreach and new “benefit bites” communications to explain coverages.

The board did not record a detailed roll-call tally in the transcript for the motion to recommend the roadmap to finance; the item was moved and seconded and put on the table for a vote.

The HR team said additional roadmap items beyond the immediate 2026 actions would return for specific board approvals in subsequent years.

Ending: The board advanced the item to the next step by motion; staff will appear before finance for budget modeling of the proposed contribution changes and the county’s planned HSA funding in 2026.