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Actuary recommends up to 14% premium increase; consultants propose three new plan designs
Summary
An actuary told commissioners that claims and high-cost claimants pushed a baseline 10.7% 'break-even' premium increase; to meet reserve policy the actuarial team recommended a 14% increase, while consultants proposed three plan designs and a $200/month working-spouse surcharge to offset member impacts.
Steve Parsons, the county ctuary, reported reserve declines and rising high-cost claimants and recommended changes to funding for calendar year 2027. Parsons said the county's reserves had fallen from over $20 million at the end of 2023 to a forecasted $9 million at the end of 2026 and that high-cost claimants (>$100,000) increased from 35 claimants at $10.5 million to 53 claimants at $13.7 million, producing a baseline 10.7% premium recommendation to break even. Under the county's reserve policy the actuary recommended a 14% increase spread over multiple years.
Kelsey Finukin of Oswald Companies proposed replacing the single existing medical plan with three new designs (two PPOs with higher deductibles and one HSA-compliant high-deductible plan), moving to four premium tiers (single; employee+spouse; employee+child(ren); family), and a $200/month working-spouse surcharge where spouses with employer-sponsored coverage who remain on the county plan would pay extra. Finukin said the design changes would allow choice and could substantially reduce the net premium increase members would experience. The board voted to accept the actuary report and establish premium rates effective Jan. 1, 2027.
