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County actuary projects FY27 medical and pharmacy cost pressures; recommends modest budget increase
Summary
An actuarial review projected FY27 medical and pharmacy trend pressures (medical ~9%, pharmacy ~12%) and recommended a 2.7% increase to the county medical/pharmacy budget (≈$322,000), with some employee premium changes to offset employer cost.
A consultant presented an actuarial projection for the county’s health insurance plan covering medical and pharmacy claims through November 2025 and recommended modest budget adjustments for FY27.
The consultant said the county’s recent experience and national trends (notably higher utilization of GLP‑1 diabetes medications and specialty drugs such as Stelara and Humira) drive medical and pharmacy trends. He estimated medical trend at about 9% and pharmacy trend near 12% and projected county claims of just over $12.5 million for FY27. After factoring in fixed costs and stop‑loss assumptions, the consultant recommended a 2.7% increase in the medical and pharmacy budget, equivalent to roughly $322,000, and proposed modest employee contribution changes to offset part of the increase.
The county’s staff said the current budget position and prior favorable experience reduces the near‑term employer contribution increase; they recommended a dependent‑eligibility audit (estimated cost ~$30,000) to verify covered dependents and generate net savings if ineligible persons are removed.
