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St. Louis County board approves 10% midyear increase to self‑insured health premiums
Summary
The county board approved an interim 10% increase to employee and retiree premiums on the county's self‑insured medical plan effective Sept. 1, 2025; staff said the change will generate about $3.5 million and the insurance committee gave unanimous support.
The St. Louis County Board voted to approve an interim 10% increase to the county's self‑insured medical plan premiums effective Sept. 1, 2025, a midyear move officials said was needed to shore up claims funding.
Administrator Kevin Gray told the board the increase had been vetted by the labor‑management insurance committee and was recommended to sustain the plan. "The action before the board is to approve the addition of a one‑time FE building maintenance helper position..." (discussion preceded the healthcare item) and then he introduced the health plan resolution, noting claims pressures required action.
Director Jim Gotro (health plan lead) detailed the drivers: higher claim volumes, high‑cost cases, pharmaceutical prices and an aging population. He said the 10% increase will generate roughly $3.5 million and would close about half of the anticipated shortfall in 2025, and that another roughly 10% increase in January is likely. "A 10% increase to generate about $3.5 million in revenue for the health plan," Gotro said.
Officials said the insurance committee's endorsement was unanimous. Staff clarified the increase will not be placed on the 2025 levy and will be built into 2026 budget projections. Commissioners asked for a robust communications plan to reach employees who do not have regular computer access; staff said they would use email, posted notices and other channels to notify affected employees.
Several commissioners urged continued committee work on cost containment and plan design changes (deductible shifts, emergency‑room utilization rules, network discounts) to limit future midyear adjustments. The board approved the midyear increase by voice vote.
Why it matters: The change affects county employees and retirees covered by the self‑insured plan and is intended to keep the fund solvent and the plan intact without switching to a fully insured product. Officials said maintaining a self‑funded plan is generally less costly over time than fully insured alternatives.
What's next: Administration and the insurance committee will continue to develop long‑term plan changes and will provide updates to the board later this year; staff will notify employees of the September rate change and prepare projections for January.
