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Budget board approves 3% premium increases for employers, employees and retirees; weighs $1.4M transfer to benefits
Summary
Oklahoma County Budget Board voted to raise employer and employee health premiums by 3% (employer retro to July 1; employee effective Jan. 1) and later extended the same 3% increase to retiree premiums; the board discussed a supplemental transfer of roughly $1,396,775 into employee benefits to shore up reserves.
After reviewing benefit projections and employer‑premium revenue, the Oklahoma County Budget Board debated whether raising insurance premiums could reduce the supplemental cash transfer the county must make into benefits. Speakers and staff presented modeling showing a 3% increase to employer premiums (general fund and jail) and a 3% increase to employee premiums would generate additional revenue estimated in the low six figures for the general fund and more when special revenues and the jail are included.
Speaker 1 summarized the mechanics and trade‑offs and said raising premiums would reduce the county’s projected transfer need. "If we increase employer and employee premiums by 3%, we can reduce whatever transfer amount by 242,000 and change," Speaker 1 said, citing staff calculations of revenue realization from general fund, jail and special revenue accounts.
Speaker 7 moved to increase employer premiums by 3% (retroactive to July 1) and employee premiums by 3% (effective Jan. 1); the motion passed 6–2. Later, Speaker 7 also moved and the board approved increasing retiree premiums by 3% to mirror the employee change. Following those votes, board staff presented an option to transfer $1,396,775 from the September supplement into the employee benefits account to hit the target reserve level identified in staff worksheets.
Board members discussed timing and equity concerns — several said they would support employer‑side changes only if employee COLA decisions similarly offset out‑of‑pocket impacts — and asked staff to include the premium changes and potential transfer in the September supplement package for final action after lunch.
The votes reduce the county’s projected supplemental transfer needs by the modeled amounts but leave a remaining decision on whether to commit the approximately $1.4 million transfer into benefits. Staff will return with final worksheets and updated projections when the board reconvenes.
