Martin County reviews options for Pre-65 retiree health coverage after cost projections

WILLIAMSTON, N.C. — Martin County commissioners on April 29 heard a string of public comments from Pre-65 retirees and reviewed county-prepared cost projections and insurance options aimed at limiting future employer exposure for retiree health coverage.

County Manager James Bennett told the board he had mailed a letter to affected retirees about potential changes and presented modeling prepared with an insurance agent showing steep projected increases in employer health costs. Bennett said the figures were conservative and apologized for the letter’s wording, saying, “I took full responsibility for the text of the letter and apologized to those who were upset.”

The presentation traced the county’s history of retiree coverage, noting a 2011 policy that provided hospitalization and Medicare supplement coverage for employees hired before Sept. 1, 2011, and the county’s switch to the State Health Plan in 2016 after a large plan experience increase. Staff cited Session Law 2020-48 and N.C. Gen. Stat. 135-48.47 and said a local government’s election to participate in the State Health Plan is irrevocable.

Staff told the board the county currently counts 13 Pre-65 retirees affected by the discussion and showed multi-year projections comparing individual Blue Cross Blue Shield (BCBS) Gold and Bronze plans. The county presented FY2021–22 illustrative totals and multi-year scenarios; staff described the projections as conservative and based on a 5% inflation assumption. The presentation included historical figures and model scenarios for future years.

Payroll Administrator Donna Zube explained how deductibles already met would carry over if a retiree switched plans and said a retiree who qualified for federal subsidies saw premium payments fall from $1,403 to $61 in an example. Zube and Finance Officer Cindy Ange said retirees could use a Health Reimbursement Account (HRA) for co-pays and deductibles and that the county would continue to administer insurance as a pre-tax benefit for retirees.

Several retirees and employees raised specific concerns read into the record by the deputy clerk: assertions that they had been led to expect the same coverage as active employees at no cost until age 65; worries about preexisting conditions and facing additional deductibles mid-year; requests to grandfather current Pre-65 retirees onto their existing plans; requests for a written county policy for future Pre-65 retirees; and fear of losing all retiree coverage. One comment in the record said retirees had been told they were a “burden” to the county; County Manager Bennett said that characterization “could not be further from the truth” and asked who had made that claim.

Board members expressed mixed reactions. Commissioner Joe Ayers said he was sympathetic and not in favor of the proposed change as presented, while Commissioner David “Skip” Gurganus said he was concerned about asking retirees on fixed incomes to shoulder higher costs. Vice Chairman Dempsey Bond Jr. and Chairman Ronnie Smith urged patience, asking retirees to allow the board and staff to review options before a decision.

No formal change to retiree coverage was adopted at the meeting. The board approved the meeting agenda at the start of the session and later adjourned after the discussion; the session ended at 8:58 p.m.

The county’s presentation and the retirees’ written and verbal comments remain on the record; staff said they would continue to evaluate options, including individual insurance plans and how federal subsidies and HRAs might affect retirees’ out-of-pocket costs.