Lavaca County approves one-year renewal with TAC after briefing on claims, 5% medical increase

The Lavaca County Commissioners Court on June 10 approved a one-year renewal of the county's employee medical, dental and vision plans through the Texas Association of Counties (TAC) pool.

Daniel Brown of the Summit Agency told the court that the county's plan paid $1,841,103 in claims while collecting $1,787,053 in premiums last year, producing a 103% loss ratio. "It wasn't a good year in that $1,841,103 in claims was paid out and $1,787,053 was collected in premium," Brown said during the presentation.

Clarissa Martinez, an employee benefits consultant with TAC, explained the county's grandfathered plan status and urged the court to avoid changes that would forfeit that designation. "If y'all were to make any additional plan changes ... you would lose that grandfathered status," Martinez said, noting that preserving the grandfathered plan keeps a lower deductible and richer preventive-care terms for employees.

TAC staff and county presenters said the recommended medical premium increase for plan year 2025 is 5%, which they estimated would amount to roughly $85,500 on an annual basis based on current enrollment. Martinez described a pooled stop-loss arrangement that attaches at $900,000 and said reinsurance beyond that point is covered by TAC's reinsurer, Blue Cross.

After discussion, the court approved the renewal for the county's medical plan (plan 700G2), dental plan (including orthodontics), the value vision plan and basic life coverage. The motion to approve was made by the presiding judge and seconded by Commissioner, Precinct 3; the court voted by voice to approve the plans.

The court's vote keeps the county on TAC's pooled plan for another year and, according to presenters, preserves current benefit design advantages that county leaders said support employee retention.