Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Health Insurance topic
No spam. Unsubscribe anytime.
County secures 7% health-insurance renewal for 2027 and agrees to keep exploring a regional 'Scale' pool
Summary
Employee relations and Gallagher reported a negotiated fully insured renewal of 7% for 2027 and presented options including self-funding and a regional Scale insurance pool; commissioners directed staff to continue exploring the pool option while keeping the county on a fully insured plan for 2027.
Carver County staff and Gallagher consultants briefed commissioners June 2 on health-insurance market trends, a negotiated renewal and alternative funding options, including self-funding and a regional pool.
Gallagher reported market volatility and medical-trend pressures (roughly 9% to 12%). For Carver County the broker/group negotiated a fully insured renewal at 7% for the county's 01/01/2027 plan year, lower than an actuarial funding estimate presented (about 16.6%) and below broad market trend. Presenters noted a small reduction in the negotiation's net effect because of IRS increases to HSA-plan deductible thresholds.
Staff and Gallagher also presented alternatives. A self-funded illustration indicated an expected-case scenario near +8% (if claims match expectations) and a potential worst-case exposure to +26% before stop-loss protections, highlighting the need for meaningful reserves and additional compliance/staffing. Gallagher laid out four existing Minnesota pool options (PEAP, Minnesota Healthcare Consortium, Sourcewell, Logis) with varying governance and transparency characteristics.
The Scale insurance pool feasibility work showed potential for more predictable renewals via pooled risk and pooled reserves, but it also flagged a governance barrier: under current Minnesota Department of Commerce rules many pools operate on one-member/one-vote, which would leave a large county with limited control unless the legislature authorizes weighted voting. Commissioners asked for further legal analysis, expressed interest in continuing to explore pooled options with Scott County and others, and directed staff to continue feasibility work directed toward a potential 01/01/2028 launch while keeping the fully insured renewal for 2027 in place.
"We have secured a negotiated fully insured renewal for the county at 7% over current," the Gallagher consultant said. County staff recommended a measured approach: hold 2027 on a fully insured plan while continuing to analyze pooled and self-funded options and prepare for additional market solicitations next summer.
