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Insurer warns commissioners of a 43% proposed jump in county health premiums
Summary
An insurance broker told Washington County commissioners the plan renewal shows a proposed 43.13% premium increase driven by 18 high-cost claimants and rising prescription costs; the county will solicit bids and consider plan-design and employee-contribution options ahead of mid‑August open enrollment.
An insurance broker told Washington County commissioners that the county faces a proposed 43.13% increase in its group medical-insurance premium for the coming plan year, a rise he said is driven largely by a jump in high-cost claimants and prescription spending.
Zach Richards of Nat Miller Brown Insurance presented a renewal report showing premiums paid of $1,337,008.36 and total claims of $1,829,819 for the most recent year. Richards said the county had 18 high-cost claimants this past plan year, up from four the prior year, and that approximately $1.42 million of claims (about 77% of the $1.8 million total) were attributable to those high-cost claimants. Prescription expenditures rose from about $188,002 to $376,002, he said.
Richards told commissioners he has put the county’s coverage out to bid to carriers including UnitedHealthcare and SCIHO (which uses the Cigna network) and was exploring level-funded and fully insured options. He warned some carriers that historically served municipalities are no longer offering municipal products. He said Anthem — the county’s current carrier — indicated the underwriters might revisit rates if a competitive quote arrives, but that relief was not guaranteed.
The broker outlined choices the county could consider to limit premium growth: increase member deductibles, change employer contribution levels (which would shift costs to employees), or pursue alternative plan designs. He also noted an Anthem program to assist employees over age 65 considering a transition to Medicare (a voluntary program) and said staff would provide options and spreadsheets to model employer contribution alternatives.
Commissioners asked whether updated numbers would be available before the budget process; Richards said he expected to present findings at the next evening meeting and hoped to have final numbers by mid‑August to support open‑enrollment planning. The board did not make any immediate policy changes during the presentation; commissioners said they wanted to review alternatives before moving on employee contribution or plan-design changes.
Next steps: Richards will continue soliciting proposals, provide comparative spreadsheets on employer contributions and plan designs, and report back to the commissioners at the next meeting so the county can decide whether to change carriers or alter plan design before open enrollment.
