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Consultant outlines health-insurance renewal and optional HSA plan that could lower county renewal impact
Summary
An ADG consultant presented Clare County’s health-insurance renewal and proposed adding a high-deductible HSA option; depending on enrollment assumptions, adding the HSA could reduce a projected 7% cost trend to about a 1.2% net increase for the county.
Mike Cutlip of ADG told Clare County commissioners the county’s current renewal trend is about a 7% increase and outlined options including a third plan that uses a health savings account (HSA) paired with a high-deductible plan.
Cutlip said an HSA option can shift costs in ways that, depending on employee enrollment, could reduce the county’s overall renewal impact. "If we did this particular and we had 10% (enrollment), it would actually go from a 7% increase to a 1.2% decrease," Cutlip said. He described county contribution scenarios — $1,250 annually for single coverage and $2,500 for family coverage — and explained those employer contributions count toward IRS HSA maximums.
Cutlip reviewed several migration scenarios: a modest 10% take-up would lower the county’s projected increase notably; 20% take-up would produce smaller savings; and a 50% migration could increase county costs. He also described administrative design choices and potential employee payroll-contribution changes for existing plans (for example, raising HMO contributions from 2% to 10% in a proposed scenario).
Board members asked about contribution limits, the interaction with state PA 152 (opt-out implications), and how many employees might choose the HSA option. Cutlip said contribution limits and eligible expenses are set by federal rules, and forecasted that 10–20% enrollment was most likely the first year; he stressed that education would be necessary for employee uptake.
The board did not take a final vote on plan design at the meeting; commissioners said they expect further discussion in committee and a later vote on whether to add the HSA option and whether to opt out of PA 152. County staff signaled the item will return to the Committee of the Whole for more detailed analysis.
Next steps: ADG will provide further details to staff for Committee of the Whole consideration, and the board will need to vote if it decides to add the HSA option or change employee contribution levels.
