Nueces County renews self-funded health plan, tells outside agencies to assume stop-loss risk and approves 7.5% employee contribution increase

Nueces County Commissioners Court voted July 9 to renew its self-funded group health plan for the 2024-25 plan year, require outside entities that wish to remain on the county plan to sign updated agreements accepting their share of stop-loss risk, and adopt a 7.5% increase in employee premium contributions effective Oct. 1.

The action follows a workshop presentation from benefits staff and consultant McGriff showing four years of medical claims (Oct. 2019–Apr. 2024) of $2,502,040.62 and premiums of $3,351,387, which staff said produced a $849,346.38 surplus when pharmacy claims were excluded. Benefits staff cautioned the packet did not include prescription data and that adding pharmacy claims could materially change the picture. The court also heard a five-year "glide path" showing an anticipated deficit for the plan year ending Sept. 30, 2025 in the $2.5 million to $3.0 million range.

The court debated how to close that gap. Consultant scenarios presented to the court showed options such as increasing county contributions, modest employee contribution increases (the court chose a 7.5%…