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Board sets higher county health‑insurance employer contributions; budget assumes partial rollback in FY27
Summary
To rebuild the county’s self-insurance fund, supervisors approved higher employer contribution amounts effective Jan. 1 and set FY2027 budget assumptions that raise employer contributions about 26.5% for the fiscal year; staff recommended the Jan. 1 increase (actuarial option) to restore solvency faster.
Woodbury County supervisors approved changes to the county’s employer contributions for its self‑funded health-insurance plan in two related motions intended to strengthen the plan’s reserves.
Finance staff Ryan Erickson told the board that actuarially determined rates would increase the county’s contribution by about 48% and that a smaller set of rates would increase employer contributions by about 26.5%. Erickson recommended applying the actuarial rates effective Jan. 1 to generate positive cash flow and restore the fund balance more quickly, then reverting to a lower contribution once the fund reached target levels. He said the county’s current self‑insurance fund balance was about $193,000 while the required level as of June 30 was $817,000 and prior calculations had targeted higher reserves.
Supervisors discussed distribution of the increase between employer and employees. One supervisor noted that the chosen approach would increase the county’s share of the cost more than employees’ share, and urged clarity about that tradeoff in later communications. The board approved the motions to set employer contribution amounts effective Jan. 1 and to adopt the FY2027 budget sheet assumptions (the FY2027 contribution assumption in backup was roughly 26.5%) by unanimous vote.
County staff said they will monitor the fund monthly and can adjust employer contribution rates later if the fund reaches targeted levels sooner than projected.
