Henry County commissioners split over how to shore up strained county insurance fund

Henry County commissioners spent the morning weighing how to manage a county insurance fund that staff warned could be wiped out by a few high-cost claims. Commissioners were presented with actuarial and administrative details — including a $90,000 per‑claim reinsurance threshold and an aggregate reinsurance structure — and asked whether to centralize insurance costs in the commissioner's general fund or keep them in each department’s budget.

Staff cautioned that the county’s insurance aggregate could be exceeded if fewer than 3% of insured employees hit large claims, saying the county’s cushion could disappear in a single bad year. “We only need 3% of our 400-plus people on insurance to hit the aggregate for us to blow out our insurance fund,” a staff presenter warned during the discussion. Commissioners and staff exchanged options: move roughly $400,000–$500,000 into the general fund to cover department insurance or leave insurance in departmental funds and treat the highway fund as an exception because of its unique revenue structure.

A straw poll produced a 4–3 majority in favor of consolidating insurance into the general fund with the goal of equitable treatment, but commissioners did not finalize where the general‑fund contribution would come from. One commissioner urged caution about cutting raises to achieve the transfer, saying that taking pay freezes to fund insurance would be “senseless.” The board asked staff to return with a plan describing specific cuts or reclassifications to cover the transfer before a formal vote.

Why it matters: The decision affects how roughly $1 million in insurance obligations are allocated across five county departments (EMS, parks, health, PSAP, highway) and could shift levy pressure or require additional appropriations. The board’s partial consensus signals a policy direction but leaves budget mechanics unresolved.