County administration flags 32% projected increase in health insurance costs as budget memos issued

During the County Administration update at the July 6 Ways & Means meeting, staff reported a recent additional sales tax payment and told supervisors they expect significantly higher health insurance costs in next year’s budget.

Shannon Hillier, representing County Administration, said the county has seen another sales tax payment and remains "performing well" on sales tax receipts, but added, "we just found out that we should be budgeting a 32% increase" in health insurance costs after recent discussions with Gallagher, the county’s benefits consultant. County staff indicated budget memos will be issued this week to departments to factor that increase into planning.

Administration also noted upcoming events and operational items — a dam tour scheduled for July 22 and continuing work with Gallagher to refine estimates — but the most consequential fiscal note for departments was the 32% figure for health insurance budgeting. The transcript does not specify which exact insurance lines or which fiscal year this percentage applies to; administration framed it as current guidance for upcoming budget preparations. Departments have been asked to integrate that guidance into their budget submissions.

The committee approved related budget amendments and transfers later in the meeting. The meeting record does not include further breakdowns of health plan drivers or which cost components (premiums, claims experience, plan changes) account for the 32% projection; administration cited ongoing work with Gallagher to refine those figures.