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Kossuth County supervisors set 15% health-insurance projection as they review self-insured fund
Summary
Supervisors reviewed the county's self-insured health plan and fund balances, heard actuarial figures and tentative proposals to raise the county contribution; board members agreed to use a 15% increase as a planning assumption for the FY26 budget.
Kossuth County supervisors on Tuesday reviewed the county's self-insured health plan and preliminary renewal numbers, and for budgeting purposes directed staff to use a 15% contribution increase assumption for FY2026.
The discussion focused on how large claims, stop-loss terms and fund balance targets would affect the county's ability to remain self-insured. County staff presented several scenarios showing an expected-claims figure of $2,943,595 and an estimated maximum liability of $3,463,453. Staff said the county's current auditor's balance for the self-insurance fund sits in the low-to-mid $2 million range at this point in the fiscal year.
Why it matters: the self-insured fund pays monthly premiums, large claims and stop-loss coverage for employee health benefits. A sustained decline in the fund balance would force the county to increase contributions from departments or employees or to reconsider the county's insurance structure.
What supervisors heard and decided - Staff described three projection scenarios that used different assumptions about expected claims and end-of-year balances; the board discussed target balances between roughly $1.3 million and $3.0 million depending on risk tolerance. - Staff noted the county currently budgets a contribution of $845 per month for single policies and $2,075 for family policies (county contribution). Those were the figures discussed as the baseline for projections. - After discussion of volatility in claims and the risk of a large hit, supervisors agreed to use a 15% increase in contribution rates as the working assumption for the FY26 budget work. Under the 15% scenario staff calculated a single monthly county contribution in the $970 range (rounded) and a materially higher family contribution.
Staff cautioned the board these were planning assumptions. The exact rates to be presented to employees and the final budget will be set once renewal documents are final and the board approves the budget. Several supervisors emphasized protecting long-term fund balance and avoiding sudden changes for employees.
Other details discussed - The county's self-insurance fund receives revenue from department contributions, employee contributions and investment interest; staff estimated roughly $2.5 million in revenue next fiscal year under the baseline assumptions. - Supervisors reviewed a recent drop in the fund following unusually large December claims and noted that one more large claim could materially change outcomes.
The board did not adopt a final premium schedule or make a policy change; it approved the 15% planning figure for budget preparation and asked staff to return final figures once renewals are confirmed.
