Imperial County Supervisors Approve 2027 Health Insurance Premium Increases

-Editorial

The Imperial County Board of Supervisors approved new health insurance premium rates for county employees and retirees on Oct. 20, reflecting rising medical costs and a projected funding increase of up to $6.1 million for the 2027 plan year.

The approval includes a 12.4% increase in health care costs for active employees and a 15.1% increase for retirees, while dental and vision insurance premiums will remain unchanged.

According to a report submitted by Dr. Bruce W. Davis, director of Human Resources and Risk Management, the projected increase totals $6,147,214, including $4,509,817 for active employee health coverage and $1,637,397 for retiree benefits.

The new premium rates will take effect Jan. 1, 2027.

The increases follow an actuarial review of the county’s medical, dental, and vision insurance programs, which examined claims history, program expenses, and anticipated health care costs.

The county participates in PRISMHealth, a self-insured health insurance program that pools financial risks among participating public agencies. Imperial County joined the program in 2018 as part of its efforts to manage health insurance expenses and maintain stable coverage options.

For 2027, PRISMHealth projected an 11.1% renewal increase based on the county’s claims experience.

The Human Resources Department identified several factors contributing to rising insurance costs, including medical inflation, increased use of health care services, higher specialty prescription drug expenses, and the introduction of costly medical treatments.

The county also provides Medicare Advantage coverage through Anthem for retirees age 65 and older. That program received a 5% renewal increase for 2027.

The county’s actuary combined the projected costs of both programs before recommending separate premium adjustments for active employees and retirees.

Under existing memoranda of understanding with employee organizations, the county is expected to absorb the $4.5 million increase associated with active employee coverage, depending on the terms of applicable labor agreements.

However, the Human Resources Department indicated that employee contributions could increase if agreements governing the county’s share of health insurance costs are not in place.

The county’s final financial obligation will depend on the provisions and outcomes of those agreements. According to the report, the county’s projected costs could decrease by approximately $4.5 million depending on the applicable labor arrangements.

For retirees, the approved 15.1% increase represents about $1.64 million in additional health care costs, which will be reflected in retiree contributions based on eligibility and years of county service.

Retirees hired before 1989 may qualify for coverage without paying premiums under the county’s Tier I benefit provisions. Other retirees receive varying levels of county contributions based on their years of service.

For non-Medicare retirees enrolled in the Blue Shield Plan 2 option, the listed total premium for 2027 is $720.34. Depending on years of service, retirees may pay the full premium or receive county contributions covering 25%, 50%, 75%, or 100% of the cost.

For Medicare-eligible retirees enrolled in the Anthem Medicare Advantage PPO program, the listed premium is $404.78, with county contributions also determined by retirement eligibility and years of service.

Employees will continue to have different premium costs depending on their selected health plan and whether coverage includes spouses or children.

Under the approved biweekly rates, an employee selecting Plan 1, which carries a $500 deductible, will pay $70.45 for individual coverage, compared with $9.23 under Plan 2, which has a $1,500 deductible.

For employees covering a spouse and children, the biweekly contribution will be $273.84 under Plan 1 and $44.16 under Plan 2.

The county will contribute $475.42 biweekly toward employee-only coverage and $1,103.57 toward family coverage, according to the approved rate schedule.

Employees whose spouses also work for Imperial County remain eligible for dual coverage under Plan 2 at no premium cost to either employee.

Despite the medical insurance increases, the county’s actuarial review recommended maintaining existing dental and vision premium rates for 2027.

The decision applies to Dental Health Services, the county’s self-funded Principal dental program, and Vision Service Plan coverage.

Certain employee bargaining units, including management, public safety personnel, firefighters and other designated groups, will continue to receive employer-funded dental and vision benefits under applicable agreements.

County officials notified representatives of ICARE, the organization representing county retirees, about the proposed renewal rates during an Oct. 7 health insurance committee meeting.

The Human Resources Department said the projected funding increase will be financed through a combination of county departmental contributions, employee payments, and applicable retiree contributions.

Funding for the anticipated expenses is included in the county’s adopted fiscal year 2026-27 budget through its health insurance and dental and vision internal service funds.

The Board of Supervisors also authorized the director of Human Resources and Risk Management to take the necessary administrative steps to implement the approved changes ahead of the county’s annual open enrollment period.