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Douglas County approves 3% Medica rate increase for 2026 after negotiations with broker
Summary
County staff reported Medica renewal was reduced from an 8.6% quote to a 3% employer rate increase for 2026 after broker negotiation; the board approved the Medica premium rates, employer premium contribution and HSA/VEBA adjustments for nonunion employees.
County benefits staff presented the proposed 2026 health‑insurance renewal. Staff said Medica initially quoted an 8.6% increase; after work with broker Gallagher the county reduced the employer rate impact to 3% for 2026. The presenter summarized plan design: single coverage with a $5,000 deductible and family coverage with a $10,000 deductible (embedded $5,000 individual deductible).
Staff reported roughly $1.4 million in claims (medical and pharmacy) against about $1.8 million in premiums over the trailing 12 months (May through May), and highlighted pharmacy costs as the largest component. The county proposed raising employer HSA/VEBA contributions for family coverage to $3.50 (from $3.25) and continuing current employer cost‑sharing practice where the employer pays half of new premium cost increases.
A motion to accept the 2026 Medica premium rates, employer HSA/VEBA contributions and employer contribution level for nonunion employees passed unanimously on roll‑call.
What’s next: Benefits staff will finalize plan documents and employer contribution notices; employees will be informed of rate and HSA/VEBA changes ahead of open enrollment.
