Brown County adopts higher-deductible health plan and approves HRA to offset costs for employees

Brown County commissioners voted during their regular meeting to adopt a higher-deductible health-insurance plan and to authorize the county to establish a health reimbursement arrangement (HRA) to help employees cover increased out-of-pocket costs.

The chair presented the plan packet from the Tax Association of Counties and said the chosen option raises the in-network deductible from $750 under the current plan to $3,000 and increases the maximum out-of-pocket from $3,000 to $4,150. "So we realize that, say, that's a that's a pretty big hit on employee," the chair said while explaining the rationale for pairing the plan with an HRA.

Under the HRA proposal approved by the board, the county would contribute $1,200 per year for each employee at the start of the fiscal year; new hires would receive $100 per month after completing their probationary period until the next fiscal-year contribution. The chair said the funds could be used on a first-dollar basis for medical expenses not covered by the county plan, including dental, vision, prescriptions and other eligible health costs, and that unspent balances could roll over subject to plan design (the packet discussed a potential cap on rollover of $3,600).

Bart Johnson, introduced in the meeting as representing the administrator that would run the HRA, explained how claims would be handled: "If it's involved, they'll pay within 24 to 48 hours back to you on a, ACH deposit in your checking account," he said, adding that Higginbotham would submit funding requests to the county treasurer twice monthly for claims they paid on behalf of employees.

The chair emphasized the decision balanced taxpayer obligations and employee needs, saying the county sought options that would be sustainable for the budget while continuing benefits. The board voted to adopt the referenced insurance plan and to authorize the county judge to pursue a contract to implement the HRA as described. Meeting remarks indicated the motions passed without recorded opposition.

What the vote means: Commissioners approved the plan selection and authorized the county to negotiate and sign an HRA contract so long as the final contract matches the outline presented. The plan change will increase employee deductibles and out-of-pocket maximums; the county-funded HRA is intended to reduce employees' immediate out-of-pocket burden.

Next steps: County staff will work with the vendor to finalize plan documents and return to the commission if material adjustments are required. The meeting record shows the commission authorized the county judge to sign the contract if it matches the adopted outline.