Lifetime Citizen Portal Access — AI Briefings, Alerts & Unlimited Follows
Smyth County faces 25% Anthem premium spike; board backs renewal with county covering 80%
Loading...
Summary
The Smyth County Board of Supervisors was told Anthem health premiums rose about 25%, a cost the county estimates at roughly $700,000; the board’s committee recommended and the board approved continuing county coverage at 80% while staff explores offsets including FSAs, HSAs and specialist advice.
The Smyth County Board of Supervisors on March 12 was briefed on a roughly 25% increase in Anthem health insurance premiums and voted to recommend renewing the plan with the county continuing to fund 80% of employee premiums.
County Administrator Shawn Utt told the board the largest driver of the increase is pharmaceutical costs and said the rise translates to approximately $700,000 in additional county expenditures. Assistant County Administrator for Operations Lisa Richardson outlined plan changes, including a new $150 prescription deductible for Tier 2 and Tier 3 drugs. HR Director Christy Bise said Anthem will no longer cover GLP-1 drugs when prescribed for uses the insurer deems outside medical necessity and that Anthem offered no alternative coverage for those prescriptions.
"The pharmacy costs have been our highest expense," Utt said, noting the county is part of The Local Choice pool and Anthem had limited flexibility because it sets similar increases across participating localities.
Supervisors discussed options to blunt the impact on employees and the budget. Royal Oak District Supervisor Courtney Widener encouraged educating staff about plan changes; Assistant County Administrator Richardson proposed compiling information to compare keeping county coverage versus enrolling on a spouse’s plan. Utt said staff is also evaluating offering flexible spending accounts (FSAs) and health savings accounts (HSAs) to help employees build financial buffers.
Park District Supervisor Kristopher Ratliff urged staff to contact Anthem and confirm whether the county can opt out of Pharmacy Benefit Manager arrangements. Atkins District Supervisor Charlie Atkins asked staff to seek advice from insurance specialists to identify potential savings that wouldn’t reduce take-home pay for employees.
As a committee recommendation, Atkins moved to approve the FY27 Anthem renewal with the county continuing to fund 80% of premiums; Vice Chair Mike Sturgill seconded. The committee recommendation was approved and later adopted by the full board.
Board members were clear that the increase will factor into a difficult FY27 budget year that also faces increased school funding requirements and potential salary adjustments. Utt said discretionary hiring is frozen as the county prepares for the budget cycle.