Franklin County moves employee coverage to Anthem after UnitedHealthcare renewal hits 50% increase

Frankfort, Ky. — Confronted with steep price increases from insurers, the Franklin County Fiscal Court voted Oct. 15 to transition employee health coverage from UnitedHealthcare to Anthem Blue Cross Blue Shield for calendar year 2026.

A consultant retained by the county, Benjie Mars of BIM Group, told the court that UnitedHealthcare’s renewal "came in at 50%" while Anthem’s initial renewal was in the 40%-plus range before negotiations. Staff said the county and its broker worked to secure a bundled package — two PPO options and one high-deductible health plan — that reduced the county’s projected increase to about 26% versus the higher United quote. According to presentation slides and discussion, the county will absorb an increased contribution of roughly $230,000 next year to reduce employee payroll impacts.

"There's a lot of actuarial science in that," Mars said when asked whether employees moving between plan tiers could skew future pricing, emphasizing that carriers account for adverse selection in pricing.

The plan changes are designed to give employees three choices: (1) a high-deductible HSA-eligible plan with payroll deductions unchanged from the current year; (2) a core PPO that keeps employee payroll deductions the same but raises certain deductibles and co‑pays; and (3) an option that maintains current benefit levels at a reduced payroll rate (employees pay a modest additional deduction). Mars said the net result of the negotiated package is lower payroll increases for most employees compared with staying with United.

The court and county staff discussed formulary differences (which drugs are placed in tiers), continuity of specialty drug coverage and the importance of local network alignment. Mars noted that roughly 1–2% of prescriptions (specialty drugs) drive 60%–70% of costs and that formulary changes could cause limited disruption for a small number of employees.

Treasurer Amy and committee members emphasized the county’s ongoing commitment to employee benefits. Judge Miller and several magistrates praised the finance committee and staff for proactive budgeting; the judge pointed out that the court budgeted for a 20% increase when preparing FY26 materials and that the negotiated package helped reduce the burden for employees.

After a lengthy Q&A period in which department leaders raised concerns about out-of-pocket effects for families, the court approved the transition to Anthem for health coverage and approved companion moves of dental and vision to Anthem/Guardian and other voluntary benefit transitions recommended by staff. Staff committed to hosting enrollment sessions and one-on-one meetings with employees to address plan-specific concerns, formulary questions and provider-network questions.

The decisions will take effect Jan. 1, 2026. Employees will receive detailed plan documents and open-enrollment instructions from the county’s benefits team before the transition.