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County hears insurance update: PEBC cooperative saves roughly $795,000, but pharmacy costs have risen
Summary
A Holmes Murphy consultant told commissioners that Parker County's participation in the Public Employee Benefit Cooperative (PEBC) yields an estimated $795,000 in savings with a roughly 15—16:1 ROI, while pharmacy costs and large claims are driving recent trend increases.
Becky introduced David Gibson of Holmes Murphy to present an overview of the county's health plan trends and the value of the PEBC cooperative. Gibson said the county's medical-only cost runs at about $981 per employee per month and that pharmacy comprises roughly 35% of the plan's total cost. He noted the rolling 12-month pharmacy trend is about 21% higher than the prior year, driven largely by a small number of very expensive specialty drug claims.
Gibson contrasted costs the county would face if it purchased coverage alone versus participating in a 13,000-life cooperative (PEBC). He said the county's participation, factoring administrative fees, stop-loss premiums and pharmacy rebates, produces estimated net savings of about $795,000 and an approximate return on investment of 15 to 16 to 1. Commissioners responded positively to the summary: "I don't think there's any doubt that we're in a very good position to be members of PEBC," one commissioner said. The presentation closed with commissioners thanking Becky and the consultants and noting further budget discussions will continue.
