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Hampshire County approves switch to higher‑deductible employee health option with HRA backstop
Summary
The commission voted to offer county employees PEIA Plan C with an employer‑funded HRA to cover deductibles, and to allow employees to remain on Plan A with a 75/25 cost split; officials said the change is expected to save roughly $250,000 in county costs.
The Hampshire County Commission voted April 21 to change the county's baseline employee health coverage to PEIA Plan C, a higher‑deductible option, and to pair that plan with a health‑reimbursement arrangement (HRA) offered through Aflac to reimburse employees' deductible costs. Commissioners also approved an alternative that lets employees stay on Plan A if they prefer, with the county paying 75% of that premium and employees paying 25%.
President Brill and county staff described the move as a response to rising insurance costs. Clerk Strait and department heads said the county has absorbed year‑over‑year PEIA increases for years; the proposal to shift to Plan C with an HRA was presented to reduce the county's projected benefit outlay. Officials estimated the change would save the county about $250,000 in the coming budget cycle while preserving an option for employees who wish to keep Plan A.
Commissioners said they held information sessions with department heads, spoke with a PEIA representative, and included a cancer insurance policy as an optional offering through Aflac. Staff emphasized employees would retain choice: during next open enrollment staff can choose between Plan C with the HRA or remain on Plan A under the new cost‑share arrangement.
A motion to proceed with Plan C while offering the Plan A cost‑share option was made, seconded and approved by voice vote. The meeting record shows a voice vote passed the measure; no roll‑call tally was recorded in the transcript.
County officials said they would continue outreach to employees to explain differences in coverage, the HRA mechanism and optional policies during enrollment. The commission noted the change is intended to balance fiscal stewardship with recruitment and retention of county employees.
The commission did not publish a formal effective date during the meeting; staff indicated changes would align with the next enrollment period and that further communications to employees would follow.
