County staff report health plan performing, project modest 6% renewal increase

County staff presented a high-level update on Barron County’s self-funded health insurance program at the May 19 Board of Supervisors meeting, reporting improved loss-ratio performance and projected renewal figures.

Jeff French summarized plan experience through Dec. 31, 2024, noting a final funded loss ratio of about 87.2% that trailed to 79% in the first three months of 2025. French told supervisors the plan has an 18-month runout for claims and that pharmacy rebates and late adjustments affect reported monthly results. He said that if the county were to renew “today” the pre-renewal projection showed a 6.05% increase — an estimated $448,802 — which French characterized as favorable compared with double-digit market increases other carriers were quoting.

Staff described components that affect cost: stop‑loss insurance, administrative and network fees, transplant and gene therapy coverage and specialty drug programs. French pointed to Rx and Go mail-order prescription utilization and the OptiMed program as delivering savings; the presentation noted year-to-date mail-order savings increased to about $52,095.81 (up from $39,076.43) and plan savings tied to specialty-drug management of roughly $223,183.

Board members asked whether plan users were satisfied. Rachel (county staff) said overall the plan is “a good plan,” noting members have used new programs and that deductible questions are the most common complaint. French and staff said Tim Deaton of the Horton Group will return in August or September with further analysis and that staff expect to seek board direction in a closed session when negotiating renewals with stop‑loss and drug carriers.

Ending: Staff said the county’s reserve goal is roughly $5 million and the plan’s fund balance was approaching $4 million; staff recommended continuing to monitor claims and bring options to the board in late summer.