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Williamson County approves 2027 benefits package; employer HSA contribution raised to $1,200 per FTE
Summary
The Commissioners Court approved the benefits committee’s 2027 recommendations, including updated IRS HSA/HDP limits and an employer contribution of $1,200 per full‑time equivalent. The court debated reserve policy and phasing of rate increases before approving the motion 5–0.
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The Williamson County Commissioners Court on June 2 voted to adopt the benefits committee’s 2027 recommendations, a package that updates plan assumptions, implements IRS changes to high‑deductible plan limits, and raises the employer contribution to $1,200 per full‑time equivalent.
Shelley Lowry, director of Benefits Administration, and David Gibson of Holmes Murphy summarized the plan. They reported recent cost and trend figures: medical claims averaged about $893 per employee per month and pharmacy costs about $458 per employee per month, with rolling‑12 medical trend near 0.5% but longer‑term trend figures higher. Lowry said the IRS raised 2026 HSA/deductible thresholds to $3,500 individual and $7,000 family for the HSA‑eligible high‑deductible plan.
Lowry described proposed rate adjustments and employer contributions and said the plan would continue existing wellness programs while making the nicotine program voluntary and removing the prior surcharge. "We have an increased medical premiums... we went 4 years with no rate increases," Lowry said, explaining the plan needs adequate reserves to pay claims.
Commissioners questioned why the court had delayed incremental rate increases in past years and asked how reserves were being used; one commissioner urged establishing a smoother, incremental policy to avoid large spikes. After discussion, Commissioner Cook moved to adopt the package and include the employer contribution increase to $1,200 per FTE; Commissioner Long seconded. The court approved the motion 5–0.
Lowry said staff will proceed with open‑enrollment preparations and noted some parameters (assumed medical trend, administrative increases, and stop‑loss assumptions) that will be finalized later.
