The healthcare plan for Hancock County government employees is running short on money following an increase in costs, council members and commissioners say.
Council member at-large Keely Butrum said the county is being forced to dip into its $1 million reserve fund for the first time.
“When we budget in 2025… it’s the commissioners job to choose the healthcare plan, so the commissioners might have to shop it around,” Butrum said.
President of the Hancock County commissioners Bill Spalding said they needed to set up a meeting with the county’s healthcare provider and insurance committee in order to figure out a resolution to the problem. In the short term, he noted appropriations would need to be made by the county council to ensure the program’s funding, but he said he was confident that they would be able to find a long-term solution despite the high costs.
Both cited a few individuals all getting sick at the same time toward the start of the year as a primary reason for the cost increase, although they disagreed on the secondary reasons.
“Seven individuals out of 300 have already cost us over $150,000 this year because we’re a self-funded plan,” Butrum said. “Reimbursement rates on Medicare and Medicaid are much lower than the cost of a business to provide that service… so the cost for people who have health insurance goes up to compensate.”
Spalding cites a different reason for the cost spike: Inflation catching up in healthcare.
He notes that healthcare costs had not been increasing at the same rate as other industries, and that this could just be the industry catching up financially.
Data from the CDC points toward another cause to rising costs — increases in chronic and mental health concerns, which account for 90% of the United States’ medical cost.
In any case, he committed to finding a solution for Hancock County employees.
“We’re going to do whatever we can to try to bring the best health care product to people who are employed by Hancock County,” Spalding said.
With the health plan using backup funds and negotiations for the 2025 budget around the corner, employee’s health plans still loom large for the Hancock County Council and Commissioners.
