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County broker warns of health‑plan shortfall; recommends a 10% baseline contribution increase
Summary
Hub International told commissioners that since switching to Cigna the county has seen higher utilization and several high‑cost claimants; the broker projects a near‑term shortfall and proposed a 10% increase to employee premiums and a 10% county increase to stabilize reserves.
The county’s employee health‑plan broker, Hub International, presented July 14 on recent claims experience after the county moved from UnitedHealthcare to Cigna on Jan. 1, 2026. Using claims through May, Hub reported a notable increase in plan use (about 30% more participants using benefits year‑to‑date) and a cluster of high‑cost claimants: three participants already exceeded the stop‑loss pooling level (the point at which stop‑loss reimbursements begin), and eight claimants exceeded $100,000 in gross claims through May, primarily for cancer treatments and high‑cost specialty medication.
The broker said pharmacy accounts for roughly 30% of plan costs and highlighted the financial protection provided by stop‑loss coverage, but indicated the plan is projected to run a fiscal‑year shortfall (the broker estimated roughly $1.9 million for FY2026 on a gross basis). With current reserve levels and pending stop‑loss renewal numbers, Hub recommended a conservative baseline to protect the fund: a working scenario of a 10% increase to both employee premium contributions and the county’s budgeted contribution, with the high‑deductible (CDHP/HSA) option kept as a no‑premium choice for employees. That scenario was projected to raise about $150,000 in employee contributions and about $767,000 in county budgeted contributions, roughly covering the gap while preserving a modest reserve.
Commissioners asked about timing, final stop‑loss renewal numbers and headcount projections; Hub said final renewal figures and a fuller claims runout will arrive with July/August claims data and recommended treating the 10% step as a working baseline for the FY27 budget process. The court asked staff to incorporate the proposed baseline into budget scenarios and to return with refined numbers once the carrier’s renewal is received.
No formal vote was taken during the session; commissioners asked for follow‑up analysis and for staff to present a final recommendation after the broker receives the August renewal data.
