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Clare County board hears plan to curb a $390,000 health-insurance spike; schedules Aug. 5 meeting
Summary
County consultants told commissioners a renewal from Priority Health could have raised costs by about $390,000; the presenter outlined plan-design changes and an HSA option that would cut the increase to roughly 4% and urged a special meeting on Aug. 5 to finalize decisions.
Clare County commissioners were briefed on proposed changes to the county27s employee health plans that a consultant said could lower a looming $390,000 increase and scheduled a special board meeting for Aug. 5 to decide next steps.
Jennifer Martin, the county27s benefits consultant, told the board that Priority Health initially quoted a 33% increase but, after negotiations and revised calculations, the insurer27s renewed rates reflected an actuarial increase of about 21.27% and an illustrative overall increase of 18.84% if the county left plan designs unchanged. "If we did not make any changes to the plan renewed as is, we would be looking at, an additional cost of 390,000," Martin said.
Martin outlined three approaches: renew as-is; make targeted design changes (raising certain deductibles, adding coinsurance and adjusting copays) that she said would reduce the budget impact to roughly $77,000 instead of $390,000; or add a voluntary HSA option that the county would seed. Under the proposed HSA option Martin described, Clare County would contribute $2,000 for single enrollees and $3,000 for two-person or family enrollments to help cover the higher up-front deductibles.
Commissioners pressed for technical clarifications during a prolonged Q&A. On the HSA option, Martin confirmed that deductible payments would count toward the out-of-pocket maximum and corrected a notation on the draft employee sheet. Commissioners also asked how many employees the consultant expected to move into the new option; Martin said the model included an illustrative shift of seven employees but described that projection as a guess for budgeting purposes.
The board did not vote on plan design at the meeting. Instead, a motion passed to hold a special session at 9 a.m. Aug. 5 "to discuss the budget, health care, and other" matters so members could make a final selection before vendor deadlines. Administrator staff and the consultant said they would confirm vendor timelines to ensure the board27s actions would meet enrollment and contract requirements.
The meeting materials presented by the consultant compared the current county cost and renewed costs, explained the differences between HSA, HRA and FSA structures, and translated cost-share scenarios into biweekly employee contributions.
The board27s next steps: review the consultant27s detailed spreadsheets, resolve outstanding vendor deadlines and vote on plan design at the August special meeting.
