SUBJECT:
Title
Request Approval of Health Insurance Cost Increase to Both Employer and Employee (Budget Impact - Neutral; expenditure of $43,000,666)
Body
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INITIATOR: |
DEPARTMENT: |
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Bobbi Perez, Director |
Human Resources |
DESCRIPTION/BACKGROUND:
Marion County offers group health insurance to all full-time employees and dependents of the Board of County Commissioners, Clerk of Court, Sheriff, Property Appraiser, Tax Collector, Supervisor of Elections, and Hospital District. The County became partially self-insured effective October 1, 2020, with Florida Blue providing claims administration services and reinsurance.
Since implementing self-insurance, and as part of the County’s ongoing efforts to help mitigate long-term healthcare costs, the County entered into an agreement with My Health Onsite to operate an Employee Health Center beginning in FY 2025-26. The Health Center has been operational since October 2025.
As part of our efforts to identify additional cost savings and eliminate the duplication of services, the County’s Employee Assistance Plan (EAP) contract will not be renewed for FY 2026-27 as the program had low utilization and many of the services previously provided through the EAP are now included at the Employee Health Center.
Based on the health insurance claims data through December 2025, this year’s actuarial funding recommendation includes an increase in premiums. Total claims incurred from January through December 2025 reached $46.4 million, while projected FY 2026-27 claims are expected to increase to $54.6 million. In addition, the County’s current reserve balance does not meet the 60-day reserve funding amount of $8 million required by the State. The total proposed health insurance cost includes the Employee Health Center and Wellness incentives for a total of $52.75 million; with employees and retirees having an increase to their current contributions, for a total remaining cost to the County of approximately $43 million. This proposed increase in turn changes the allocation per budgeted position from $12,792 to $14,664, a 14.63% increase.
The chart below reflects the proposed monthly cost to the employee health insurance premiums:
|
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3160/3161 |
HMO 45 |
5781 |
3359 |
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FY26/27 Proposed Premiums per Month |
Employee: $0 Family: $299.36 |
Employee: $37.74 Family: $314.68 |
Employee: $90.18 Family: $371.86 |
Employee: $132.02 Family: $578.68 |
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Amount Increased per Month |
Employee: $0 Family: $19.58 |
Employee: $2.48 Family: $20.60 |
Employee: $5.90 Family: $24.34 |
Employee: $8.64 Family: $37.86 |
When compared to surrounding counties, the County’s health insurance premiums remain competitive and are generally comparable to, or lower than, those of neighboring jurisdictions.
BUDGET/IMPACT:
Neutral; expenditure of $43,000,666. The total estimated group healthcare cost is $52,753,261, with employee and retiree contributions of $9,752,594, leaving a total estimated impact of $43,000,666 to the budget.
RECOMMENDED ACTION:
Recommended action
Motion to approve the 19.86% total funding increase which includes the costs for the Employee Medical Center and Wellness Incentives; with employees sharing a part of the health insurance premium increase to be effective October 1, 2026.
end