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County told to budget for possible Anthem cost changes after IUHP sale
Summary
An insurance consultant told commissioners Anthem may charge 10% more for 2026 or require a 10% payback if 2025 claims are high; staff recommended budgeting for up to 20% to cover risk into 2027.
County auditors and an outside insurance consultant briefed Owen County commissioners on uncertainty around the county employee health plan after IU Health Partners’ (IUHP) book of business was sold to Anthem.
Sheila, the county auditor, read an email from insurance consultant Ron Remack that said Anthem is “strongly considering” offering to charge the county the same rates the county currently pays to IUHP while adding a 10% increase for plan-year 2026 after claims are reviewed through August. The consultant warned there is a caveat: if the county’s 2025 claims are higher than expected, Anthem could require the county to reimburse 10% of premiums in 2026.
Remack’s recommendation, relayed to the commissioners, was to budget not only for a possible 10% reimbursement but to reserve an additional 10% as a planning buffer for 2027 — a total planning cushion of about 20% — because the marketplace may reset rates upward in the next plan year. The consultant also said he had filed a complaint with the Indiana Department of Insurance and continues to solicit quotes from other carriers to compare offers.
Commissioners and staff discussed that IUHP historically ran narrower networks and lower manual rates than large carriers like Anthem, and that a market-driven increase in premiums for 2027 remains a likely possibility. No formal action was taken at the meeting; staff said they will continue to gather alternative quotes and will present details to the council and commissioners to guide budgeting decisions.
Ending: Commissioners urged staff to return with more quote comparisons and to factor potential Anthem contingencies into the 2026–2027 budget planning cycle.
