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Adams County told health insurance costs rose 22% after a 307% loss ratio in past year
Summary
County insurance broker Greg Parker told the Adams County Board of Supervisors that a spike in claims pushed reinsurance and claims costs sharply higher this year, producing a 22% premium increase and an estimated $818,000 budget impact.
Adams County supervisors were told that the county's self-insured health plan saw a major spike in claims that drove a 22% increase in costs for the plan this year.
Greg Parker, the county's insurance agent, told the board a rolling 12-month look at claims found about $2,419,000 paid in claims against roughly $785,000 of fixed reinsurance and Blue Cross payments, which he described as a roughly 307% loss ratio. "For every dollar I take in, I spend three," Parker said, describing the ratio.
Parker said the plan has seen fluctuations in prior years'reinsurance costs, including an 8% drop in one year and a later 9% increase, and that this year's 22% increase stemmed from claims activity. He also reported that the plan's high-cost "laser" cases that previously had been as high as $600,000 were down this year to about $40,000, reducing exposure on that front.
Supervisor John Gray pressed Parker for a concrete dollar figure for the 22% increase because supervisors must budget for the rise ahead of the county's budget process. Parker replied: "That number is 818,000," and later told the board staff estimate of about $12,750 per claimant as a working planning assumption.
Parker recommended keeping the per-claimant planning estimate near that level rather than lowering it, saying it would be prudent given variability: "it is an estimate. It could be a good healthy year and could be more if you have an unfortunate sick year." He also asked the board to consider an executive session to review individual self-insured benefit exceptions.
Why it matters: Supervisors are preparing the county's budget for the coming year, and the insurance increase will be an input for department budgets and countywide cost planning. Parker's briefing gave board members both the percentage increase and an estimate of the dollar impact they asked for during the meeting.
Meeting outcome and next steps: The presentation ended with Parker offering to return with follow-up figures and to discuss benefit exceptions in executive session; no formal vote was required on the presentation itself. Supervisors asked staff to include the increased cost in upcoming budget work and to provide a clearer line-item dollar impact for the county budget.
Quotes
"A rolling 12 month average ... the last 12 months in claims paid out was $2,419,000. That is a 307% loss ratio," Greg Parker, insurance agent.
"That number is 818,000," Greg Parker, on the dollar amount corresponding to the 22% premium increase.
Ending
County staff and the broker said they will provide supervisors a more detailed dollar breakout for the October/May budget process; Parker also requested permission to discuss specific benefit-exception items in executive session.
