Cheyenne County approves Blue Cross renewal after hearing 21% rate spike; commissioners agree to use reserves to soften impact

Cheyenne County commissioners voted to approve the county's Blue Cross Blue Shield renewal after a presentation that showed a 21.28% medical-plan rate increase driven largely by prescription-drug and utilization costs.

The increase was presented by Jeremy McGuire of the county's benefits team, who said the advisers had compared vendors and concluded "Blue Cross still remains the best option for us." McGuire and county consultants told the board that the county is a "small-group" pool and that a level-funded alternative was declined because underwriters found the group an excessive risk.

Commissioners and staff discussed options for limiting the budgetary shock. The benefits team proposed keeping contributions to reserves at 2024 levels and reallocating some existing reserves to the insurance fund. That approach would lower the effective increase in plan costs from the headline 21.28% to roughly 14.21% for 2025, according to the consultants, who estimated the county would still maintain about 92.6% coverage of maximum liability under the plan if reserves are kept at last year's funding rate.

Members pressed staff on what would happen when the reserve cushion was drawn down. Presenters repeatedly emphasized the tradeoff: smoothing short-term costs by using reserves reduces near-term pressure but can raise exposure in future years if claims remain high. The benefits briefing included separate reviews of dental, vision and life benefits, and information about flexible spending and HSA options.

After discussion the board moved, seconded and approved the renewal and related claims paperwork by voice vote; the clerk was instructed to get signatures and finalize payroll/renewal forms. The motion was recorded as approved by voice; no roll-call vote was transcribed.