Board hears options to avoid nearly $222,000 shortfall by switching health insurer, cutting HSA contributions or shifting premiums

Summary

Amherst County staff told supervisors March 11 that switching from Anthem to a Local Choice pool could reduce the county's FY2026 health-insurance exposure by several hundred thousand dollars, but the change would remove the county's HMO option, raise the deductible and could impose exit penalties if the county later leaves the pool.

Amherst County staff presented three health-insurance scenarios at the county's March 11 budget workshop and said switching to the Local Choice pool could substantially reduce the county's health-care costs compared with renewing with Anthem.

The county's human resources director, Miss Felix, told the Board of Supervisors the county is facing a $222,000 operating shortfall if the board wants to include a 3% cost-of-living adjustment (COLA) and keep employee health coverage costs unchanged. Felix said the county has three modeled options: (1) move to Local Choice (TLC) with no increase to employee premiums, (2) move to TLC and raise employee premiums 5%, or (3) move to TLC and raise employee premiums 10%. Each option assumes plan design changes: an increase in the annual deductible from $500 to $1,000 and a reduction in the county's Health Savings Account (HSA) employer contribution from $2,000 to $1,500 per enrolled employee year.

Felix said the county would pay an additional $167,968 if it switched to Local Choice and left employee out-of-pocket costs…

Board hears options to avoid nearly $222,000 shortfall by switching health insurer, cutting HSA contributions or shifting premiums

Summary

Subscribe to keep reading