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County proposes new health plan options and to discontinue county‑paid life insurance for future disability retirees
Summary
County staff proposed introducing an enhanced health plan with a lower deductible, a basic higher‑deductible plan, adding a fourth prescription tier, removing GLP‑1 coverage when used for weight loss only, moving dental to a fully insured model, and ending county‑paid basic life insurance for disability retirees retiring on/after July 1, 2026 (grandfathered for earlier retirees).
Human resources director Shannon Hutchkins told the board on May 4 that the county’s health and dental plans have run at a deficit and recommended a set of plan design changes meant to stabilize costs. For FY2026 the health plan was budgeted at $30.7 million and, without changes, costs were projected to rise to $39.2 million in FY2027, Hutchkins said.
To slow cost growth, staff proposed offering an enhanced plan with a lower deductible and a basic option with a higher deductible and lower premium, adding a fourth prescription drug tier, and removing coverage for GLP‑1 medications when prescribed solely for weight loss. Hutchkins also recommended transitioning dental coverage from a self‑insured to a fully insured arrangement with two employee options (enhanced and basic).
Separately, staff recommended discontinuing county‑paid basic life insurance for disability retirees for individuals retiring on or after July 1, 2026; retirees approved by the North Carolina Local Government Retirement System before that date would be grandfathered and retain the benefit. Hutchkins said the premium for that benefit rose sharply (text noted a multi‑hundred‑percent increase since FY2024) and removing it for future retirees would reduce pressure on the county’s internal services fund; staff estimated plan changes could slow cost increases by roughly $4 million in FY2027.
Commissioners asked for examples of GLP‑1 drugs to be excluded from coverage in weight‑loss use (Hutchkins cited Wegovy/Zepbound and similar medications). If the board approves the changes the effective date would be July 1, 2026.
