County reports healthier health-insurance fund after first quarter, plans pharmacy RFP and dependent audit

Woodbury County officials reported that the county’s self-insured health insurance fund is in a stronger position after the first calendar quarter of 2026 and outlined next steps to control costs.

HR Director Melissa Thomas said open enrollment produced 328 PPO contracts and 70 HMO contracts. She said the county plans to issue a request for proposals for a pharmacy benefit manager this summer to seek better prescription discounts, and staff will run a dependent‑eligibility audit.

Budget Director Ryan Arneson presented financial figures: contributions to the health plan in the first quarter rose to more than $2.3 million overall, with just over $2.1 million contributed by the county. Net claims and fixed costs for the same period were just under $1.9 million, compared with about $2.2 million in the first quarter of the prior calendar year. Arneson said the cash balance as of March 31 rose from $783,000 last year to $886,000 and has since topped $1 million. He cautioned that second‑quarter claims can vary and said staff will continue to monitor the fund and the eventual required minimum balance reported later in the year.

Supervisors thanked staff for work on plan changes and emphasized continued attention to cost‑saving measures while maintaining fund solvency. No formal board action was required; staff will bring further procurement steps and audit details back to the board as they are planned.

Arneson also told the board that last year the county made a one-time contribution of $725,000 to restore the fund to minimum requirements after a period of high claims; that short‑term action was part of the historical context for the current monitoring plan.

The board did not take a vote on policy changes but directed staff to proceed with procurement planning and monitoring.