Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Employee Benefits topic
No spam. Unsubscribe anytime.
Clay County proposes to absorb roughly $1.2M health-insurance renewal to shield employees
Summary
Clay County HR and broker CBIZ recommended renewing with Blue Cross Blue Shield for 2026 and asked the commission to absorb an estimated 17.3% renewal ($~1.2 million) so employees see no premium increase; staff also proposed a one-time AmWINS dependent-eligibility audit during open enrollment.
Clay County officials presented a plan on Sept. 11 for the county to absorb the bulk of a projected 2026 health-insurance renewal so employees would not face higher premiums.
Kim Callahan, Clay County human resources director, told the commission the county's broker and actuary recommended renewing with Blue Cross Blue Shield and that the county would pick up an estimated 17.3% increase, "which is 1,200,000," so "this would be no additional cost to employees." Callahan said that absorbing the increase would be a one-time action and not a precedent for future renewals.
Maggie Knutson of broker CBIZ said the increase is driven mainly by stop-loss funding tied to several very large, ongoing claims: "a couple of them are over a million dollars a piece." Knutson said the county had 11 large claims over $100,000 totaling $3,500,000 and that Blue Cross carries about $2,400,000 in stop-loss coverage; the stop-loss premium is the principal driver of the renewal.
Commissioners asked whether those claim costs were tied to workplace exposures and whether self-funding or joining a larger pool with other jurisdictions had been considered. Knutson and Callahan said the large claims reflect chronic or hereditary conditions and are not attributable to on-the-job exposures; the county solicited market bids (Aetna ~17.2%, UnitedHealthcare ~28%, Cigna declined) and evaluated a self-funded option that proved more expensive this year.
Callahan also proposed a one-time dependent-eligibility audit to be run by AmWINS during open enrollment. She said AmWINS would notify employees starting Oct. 21, open-enrollment meetings will be Oct. 27 and Oct. 29, and open enrollment will run Oct. 27'Nov. 7. Callahan explained that any dependent found ineligible would be removed retroactive to Jan. 1 and premiums refunded to employees; any claims paid for an ineligible dependent would be reprocessed and denied.
No vote was required at the Sept. 11 meeting. Administrator and staff will return the formal renewal contract and the AmWINS audit item for a vote at next week's business meeting.
What happens next: the commission will review the formal agreement next week and can vote to accept the renewal terms and the proposed audit contract.
