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Comptroller asks court to cover $1 million insurance-fund shortfall; members send ordinance to full court
Summary
Washington County comptroller told the finance quorum court health insurance claims exceeded budgeted amounts; the court voted to forward an ordinance to appropriate $1,000,000 from the insurance fund’s unappropriated reserves to cover claims through year-end.
Washington County officials told the finance quorum court on Thursday that the county’s employee health-insurance fund is running a deficit and the comptroller recommended an ordinance to move $1,000,000 from that fund’s unappropriated reserves into the 2024 budget.
Comptroller Toby Sherman said the insurance fund had a shortfall — “it's a $119,000 in the hole” on a month-to-month accounting basis, and claims have run well above recent budgeted averages. “We’ve been having a bad year,” Sherman said. He explained that the county had budgeted roughly $7.5 million for the fund but actual claims are averaging about $700,000 per month and projections led staff to recommend moving $1 million from unappropriated reserves to cover the remainder of the year.
Employee-insurance presenter Paul Angel (identified in the meeting as “Mister Angel”) reviewed recent claims and reserves. He said October medical claims totaled $367,000 and drug costs were $253,000; the fund’s reserves stood at about $2.3 million, and an expected Rx rebate of roughly $205,000 remained outstanding.
Sherman and several justices clarified the source of the money: it would come from the employee insurance fund’s unappropriated reserves — funds comprised of employee premiums, departmental budget transfers and rebates — not from the county general fund. Sherman said departments budget matching contributions and transfers flow into the insurance fund and require an ordinance to spend once moved.
Why it matters: The county has been running higher-than-expected claims this year; without the ordinance the insurance fund would remain underfunded for 2024 and departments that budget for insurance matching may face accounting complications.
Vote and next steps: Justice Lyons moved to send the ordinance to the full quorum court with a “due pass” recommendation; the motion passed by voice. The item will go to the full court for final appropriation and accounting changes.
Ending: Comptroller Sherman said the county budget includes a larger insurance allocation in next year’s budget (about $9,000,000) and officials hope claims and plan management will stabilize in 2025.
