Woodbury County pauses plan redesign after employee outcry; board OKs 6.5% employer contribution increase
Summary
After a multi-hour presentation and extensive public comment from county employees and union representatives, the Woodbury County Board of Supervisors voted to postpone final adoption of redesigned health plan options and approved a 6.5% increase in the county—s employer contribution to the health fund effective Jan. 1, 2026.
The Woodbury County Board of Supervisors on Nov. 1 heard a staff presentation and hours of public comment on proposed changes to the county—s self-funded health insurance plans before voting to delay final approval and to raise the county—s employer contribution by 6.5% effective Jan. 1, 2026.
Human Resources Director Melissa Thomas introduced the agenda item, saying the proposal—s purpose was "to increase the funding in our health plan and for our reserves." She told the board an actuary had shown the county—s reserves were below required levels and that recent contributions and claims left the fund short.
Seth Major, a consultant with Gallagher, presented benchmarking data and three plan options (two HMOs and a PPO alternative). He told the board the changes were intended to reduce the county—s projected spending and noted an estimated annual savings under the presented design of about "A million $77,000," depending on which plans employees select.
Employees, union leaders and other residents spoke at length in public comment. Speakers said the proposed changes would sharply raise deductibles and out-of-pocket maximums for many workers and retirees and would worsen recruitment and retention. A common request in the room and on the record was that the board postpone a final decision until staff shared more detailed actuarial and claims data and had additional time to consult departments and bargaining units.
County staff provided additional financial context during the meeting. A county staff member reported that contributions into the county health fund totaled about $6.7 million while claims paid were about $8.0 million in the recent year, a $1.3 million shortfall; the staff member also gave recent year-end fund balances (end of 2022: $2.6 million; 2023: $2.1 million; 2024: $1.2 million; a mid-2025 injection of $725,000 left an ending position of roughly $816,000; current balance reported at $572,000).
After discussion, Supervisor Uns moved and Supervisor Carver seconded a motion to postpone final adoption of the new plan designs to allow more time for information-sharing and staff outreach; the motion passed unanimously, 5-0. Later in the meeting the board approved a separate motion, moved by Supervisor Bittinger and seconded by Supervisor Dietrich, to increase the county—s employer contribution to the health fund by 6.5% effective Jan. 1, 2026. County staff said the employer-contribution increase will require a December budget amendment and estimated it will add about $400,000 to the current-year budget.
The board did not adopt the new plan design at the Nov. 1 meeting; supervisors said they would revisit the plan after additional staff outreach, actuarial detail and time for departments and bargaining units to review alternatives. Staff reminded the board that Wellmark enrollment and administrative deadlines mean a final decision is needed by about Dec. 10 if the county wants new plan designs to be in place Jan. 1.
