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Mohave County trustees weigh conditional health plan opt-out incentive; decision deferred to February
Summary
Trustees reviewed a proposal to offer conditioned cash incentives to employees who waive Mohave County health coverage and prove alternate coverage; staff will model costs and return to the board for a February briefing before any vote.
Trustees for the Mohave County Employee Benefit Trust heard a staff presentation on a proposed conditional opt-out incentive that would pay employees a cash amount if they waive county medical coverage and can show credible alternative coverage elsewhere.
John Hatz of Gallagher Benefits explained the conditional model and its rationale, saying the county would require proof of alternate coverage and avoid an unconditional payment structure that complicates affordability calculations. "There'll be a cash offer, paid out to the employee if they waive coverage on the condition that they have qualified coverage elsewhere," Hatz said.
Hatz cited sample programs in Pinal County, the City of Tucson and the City of Tempe and described guardrails for sizing incentives: the incentive should not exceed the employer contribution minus the employee contribution. Using the county's EPO single coverage figures, Hatz identified an employer contribution of $732.35 and an employee contribution of $103.64, saying final figures would be modeled once the renewal budget is set.
Juliana in HR said the policy would not rely solely on an attestation. "We will be requiring proof," she told trustees, describing a form that would require supporting documentation showing coverage through a spouse, parents' employer plan, military/VA or tribal services plan and requiring annual renewal during open enrollment.
Trustees pressed for clarity on several items: whether Medicare would qualify as acceptable alternate coverage (Hatz said he would research IRS/Medicare interactions), how many currently-waived employees would actually qualify (staff said about 160 employees now waive coverage but most waiver reasons are not yet documented) and how the incentive would be taxed. Trustee Luke warned that the incentive would be a taxable fringe benefit and said the county should "gross up" recommended amounts to offset the tax hit so employees receive a net benefit comparable to premium savings.
No formal vote was taken. Trustees directed staff to produce more detailed modeling, including tax gross-up estimates and a clearer breakdown of who in the current waiver pool would qualify, and to brief the full Board of Supervisors at a February meeting ahead of any action. Hatz said the program could be implemented effective July 1, 2026, if approved after modeling and budget decisions.
The board left the matter open for further analysis and scheduled a full briefing in February to "take the temperature" of the Board of Supervisors before any binding decision.
