Adjustments to county employee health plan

County Administrator Mounir Bouyounes talks with Commissioner Carl Zalak during a workshop in 2023 in Ocala. [Bruce Ackerman/Ocala Gazette file photo]

Marion County commissioners approved a funding increase for the county’s self-insured employee health plan on May 19, a move that will raise monthly premiums for workers and cost the county roughly $43 million.

The vote addresses a looming budget challenge discussed extensively during an April 7 budget workshop, in which County Administrator Mounir Bouyounes warned that a spike in health care costs could make it difficult to balance the upcoming fiscal year’s budget without making tough policy decisions or raising the property tax millage rate.

The financial impact

Driven by the county’s self-funded plan consistently paying out $4 million a month in medical and prescription claims, the total estimated group health care cost for FY 2026-2027 is projected to reach $52.75 million.

To help bridge the gap, county employees and retirees still on the plan will absorb a portion of the 19.86% total funding increase, contributing a combined $9.75 million. Effective Oct. 1, employees will see their monthly premiums rise depending on their selected coverage from $2.48 to $8.64 a month for single coverage and $19.58 to $37.86 for family plans.

Even with employees paying a slightly higher share, there is still a budget impact on the county. The remaining $43 million obligation increases the county’s health care allocation per budgeted position from $12,792 to $14,664, representing a 14.63% jump.

Looking to the employee clinic for relief

To combat these rising costs, county leaders are urgently pushing employees to alter their health care habits, primarily by utilizing the recently opened Employee Health Clinic instead of more expensive freestanding emergency rooms for non-emergencies.

“We need our employees to understand when is the appropriate time to go to the ER versus a quick-care type environment,” Assistant County Administrator Amanda Tart said during Tuesday’s board meeting.

With the county heading into the summer open enrollment period, Tart noted that her team is launching a targeted education campaign across all departments and constitutional offices. The goal is to inform employees about the financial benefits of the clinic, which is free to employees and their spouses, and provide resources so they know exactly where to go for care.

Tart had cautioned during an April budget meeting, however, that patience is required because the $3.1 million clinic has only been operational for a few months. She said it will likely take until its second year of operation before the preventative care and diversion from ERs translates into tangible budget relief for the county.