Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Employee Benefits topic
No spam. Unsubscribe anytime.
Actuary warns Jefferson County to boost employee health contributions or face large shortfall
Summary
An outside actuary told commissioners the county's self-funded medical plan has run losses and needs roughly a 52.5% increase in combined employer/employee contributions to avoid depleting reserves; commissioners approved a $150,000 PILT transfer to the plan immediately.
An outside actuary told Jefferson County commissioners their self-funded VEBA has swung from small gains (2023) to sizeable losses in 2025–2026 and recommended a sharp, immediate increase to avoid reserve depletion. Kent Cannon, the county's actuary, said the plan's recent experience implies the county would need about a 52.5% increase in combined employer-and-employee contributions to meet projected claims and rebuild a reserve.
"When we did our review of current level contributions, we we think you need about a 50% increase in the contributions you're making," Cannon said during the presentation, citing rising per‑member claims and an aggregate stop‑loss experience that has produced recoveries in recent years but not enough to offset current trends. He estimated a shortfall through Sept. 30 of roughly $650,000 after a recent one-time contribution and projected that, without action, the plan would require $3.6 million to $4.0 million in annual funding at current trend assumptions.
Commissioners discussed options including raising county contributions, changing plan design, or moving toward a model that shifts more cost to employees. To address an immediate gap, the board approved a motion to transfer $150,000 from PILT to the VEBA/insurance account.
Why it matters: The county funds employee health benefits from local revenues; substantial increases in contributions or benefit redesign would affect county budgets and employee costs going into the next fiscal year.
