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McDowell County approves 0.5% reinsurance increase, keeps employee health plan largely unchanged
Summary
The county accepted a staff recommendation to approve a 0.5% reinsurance increase for the employee health insurance contract starting July 1, citing improved recent claims experience and an overall plan cost below historical medical trend.
The McDowell County Board of Commissioners on April 20 voted to accept staff's recommendation to approve a 0.5% increase in reinsurance premiums for the county's employee health plan ahead of a new contract effective July 1.
Brian Flynn, who reviewed the county's benefits numbers for the board, said the 2024'25 plan year costs were roughly "10% lower than the previous year" and that the county is projecting about a 3% budget increase for the coming contract year. Flynn told commissioners the market and the carrier asked for "a 0.5% increase" in reinsurance and that plan design will remain unchanged.
Why it matters: While medical inflation has been near double digits, Flynn said the county's net plan trend remains well under that level because of pharmacy rebates and stop-loss reimbursements. He warned that some high-cost claimants remain an exposure but said the county's stop-loss program and current reserves have limited recent impact.
Board action and fiscal detail: A commissioner moved and seconded the staff recommendation; the motion carried by voice vote. Flynn provided a back-of-envelope conversion during discussion that a 0.5% increase would amount to about $5,000 on a roughly $3 million premium base. He also cited a rolling 12-month per-employee estimate near $1,044 and discussed the board's long-term target of roughly $1,200 per employee per year to build reserves.
What commissioners asked: Commissioners pressed on the magnitude in dollars of the increase and asked whether the net figures include pharmacy rebates and stop-loss reimbursements; Flynn confirmed those items are included in the net numbers presented. Board members also discussed the long-term need to set aside reserves to smooth cost spikes versus competing budget priorities such as employee cost-of-living adjustments and facility repairs.
Next steps: The reinsurance change will be included in a new contract starting July 1. The board did not change plan design and directed staff to proceed with the recommended procurement and contract steps.
Source: Presentation and discussion led by Brian Flynn to the McDowell County Board of Commissioners, April 20.
