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Holmes Murphy reports rising pharmacy costs but manageable overall trend for county health plan
Summary
Holmes Murphy presented Johnson County’s employee health plan performance: medical trend softened but pharmacy (specialty drugs and GLP‑1 therapies) drove pharmacy trend higher; county fund balance can cover a modest variance and staff will monitor stop‑loss and vendor options.
Julie Rickman, a consultant with Holmes Murphy, gave the Commissioners Court a budget‑update presentation on county employee health benefits, noting that pharmacy costs — especially specialty medications — are the primary driver of recent increases.
Rickman said the county’s overall health care trend rose to about 11.8% for 2025 in one measure, but the rolling‑12 medical trend improved to roughly 1.7–2.3%. “GLP‑1 medications continue to be a top medical driver,” she said, adding that the county’s plan covers GLP‑1 drugs for diabetes (not for weight loss). Rickman recommended continued vendor review, stop‑loss monitoring and further member outreach to connect employees with primary care to moderate long‑term costs.
The presenter also reviewed enrollment and demographics — the number of enrolled employees increased about 12% with an 18% rise in total members — and showed the county’s projected 2025‑26 budget variance would be covered by fund balance. No action was required; the court will receive a final budget recommendation in June.
