Broward County Commission Regular Meeting
Director's Name: Stephen Farmer (Acting Director)
Department: Finance and Administrative Services Division: Human Resources
Information
Requested Action
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A. MOTION TO APPROVE proposed health insurance funding for calendar year (plan year) 2027 as reflected in Exhibit 1.
B. MOTION TO APPROVE proposed County match under the 457 Deferred Compensation Plan with a $2,000 annual cap for all benefit-eligible employees.
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Why Action is Necessary
Motion A. Board approval is necessary to amend the County’s insurance rates and plan designs for calendar year (plan year) 2027.
Motion B. Board approval is necessary to fund a deferred compensation match.
What Action Accomplishes
Motion A provides for continuation of health and pharmacy insurance for calendar year (plan year) 2027 and approves the items necessary to prepare informational material for open enrollment, which is scheduled to begin on October 26, 2026.
Motion B provides a match to benefit-eligible employees contributing to one of the three deferred compensation plans offered by the County.
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Previous Action Taken
None
Summary Explanation/Background
THE FINANCE AND ADMINISTRATIVE SERVICES DEPARTMENT AND THE HUMAN RESOURCES DIVISION RECOMMEND APPROVAL OF THE ABOVE MOTIONS.
Motion A. Health Insurance Funding for Calendar Year 2027.
The County has worked with its benefits consultant, USI Services LLC (“USI”), to make the following recommendations to the County’s health plans and programs. To prepare for open enrollment for calendar year 2027, currently scheduled to begin on October 26, 2026, this item seeks Board approval of the funding for health and pharmacy benefits as provided below.
Health Plans:
The following is the recommended health plan funding for calendar/plan year 2027 as reflected in Exhibit 2. Note: All health plans will continue to be provided by United Healthcare (UHC):
• Make available a new HDHP Base Plan, utilizing the NHP (Neighborhood Health Partners) network, a Florida based network with a 95% match to the current Choice Network Florida providers. Dependents living outside of Florida will be covered by the current national Choice Network. This plan will provide the lowest payroll cost to employees with coverage very similar to the 2026 HDHP Out of Network plan with the exception of providing coverage for GLP-1’s for diabetes Type 2 only. GLP-1’s for weight loss only will not be covered under this plan.
• Continue the current HDHP Out of Network Plan (HDHP Premium Plan), utilizing the national Choice network with some plan design changes and an increased cost sharing to employees. Coverage for GLP-1’s for diabetes Type 2 and weight loss are covered.
• Continue the current CDH Plan with some plan design changes and an increased cost sharing to employees.
• Per Internal Revenue Service (IRS) guidelines, the minimum annual deductible allowed for a HDHP plan will increase from $1,700 to $1,750 for Single Coverage and from $3,400 to $3,500 for Dependent/Family Coverage.
• Remove $5 per enrolled member surcharge for Level2 Diabetes Program to encourage participation.
• Continue funding (with no change) the Health Savings Account for the HDHP Base Plan and HDHP Premium Plan with employer contribution of $1,000 for Single Coverage and $2,000 for Dependent/Family Coverage per year.
Waiver Credit:
• Continue Waiver Credit (with no change) provided to employees who waive County health insurance due to being enrolled under their spouse or parent’s plan, another group health plan, Medicare, Medicaid, TriCare, or Veteran’s insurance.
o Full-time employees: $2,600 annually, paid on a biweekly basis.
o Part-time 20 employees: $1,300 annually, paid on a biweekly basis.
This recommendation also includes the continuation (with no changes) of the following health program initiatives:
1. The $20 bi-weekly surcharge for working spouses/domestic partners who have health coverage available from their employers but chose to enroll in the County health plan.
2. The annual Engagement Incentive with the requirement that employees and spouses/domestic partners enrolled in the County’s HDHP Base or HDHP Premium health plans must complete a designated preventive screening within the prior 12 months to receive County-funding in their 2027 Health Savings Account (HSA) or Health Reimbursement Account (HRA), if not eligible to participate in a Health Savings Account.
Motion B. County Match for Deferred Compensation Plan.
The County offers a governmental 457 Deferred Compensation Plan, which allows benefit-eligible employees to defer a fixed dollar amount or percentage of their compensation on a pre-tax (tax-deferred) or after-tax basis into an account with one or more of the three County vendors [Brighthouse (pre-tax only), Nationwide and MissionSquare (pre-tax and after-tax)] for retirement savings. On December 4, 2018 (Item No. 51), the Board approved the County’s Amended and Restated Master Deferred Compensation Plan, which allows for County contributions to employee accounts under Article 5, Employer Contributions.
The deferred compensation match is intended to encourage more benefit-eligible employees to save for their retirement and financial wellbeing. The match is based on a calendar year, with a $2,000 annual cap. The match is made on a dollar-for-dollar basis each pay period. Employee and County contributions are always vested and are for the exclusive benefit of the employee and their beneficiaries.
Source of Additional Information
Allen Wilson, Director, Human Resources Division, 954-357-6090
Fiscal Impact
Fiscal Impact/Cost Summary
Motion A. Based on the proposed plan design options, the estimated cost of group health insurance, on a self-insured basis, for calendar year 2027, is as follows:
Health
Expected Medical Claims $73.4M
Retention & PCOR Fee $3.2M
Stop Loss Coverage Premiums $4.1M
Pharmacy
Expected Pharmacy Claims $29.1M
Total Health and Pharmacy Costs $109.8M
Based on premium rates for 2027, the cost share is as follows:
Employee Portion of Premiums $7.1M (6.4%)
COBRA/Retiree Premiums $2.1M (2.4%)
County Subsidy of Premiums $100.4M (91.5%)
Total Health and Pharmacy Cost $109.8M
County Subsidy of Premiums $100.4M
County Funding of HSA $7.8M
County Funding of Opt-Outs $1.2M
Total Cost to County $110.3M
Motion B. The fiscal impact to the County for the $2,000 per year match based on 5,756 benefit-eligible employees participating is estimated to cost $11.5M per year.