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) 2026 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 for calendar year (plan year) 2026.
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) 2026 and approves the items necessary to prepare informational material for open enrollment, which is scheduled to begin in late October 2025.
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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☐County Commission
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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 2026.
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 the calendar year 2026, currently scheduled to begin in late October 2025, 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 2026:
• Continue the High Deductible Health Plan with Out-of-Network (HDHP) and Consumer Driven Health (CDH) plans with a 0% increase in payroll deductions.
• Per Internal Revenue Service (IRS) guidelines, the minimum annual deductible allowed for an HDHP plan will increase from $1,650 to $1,700 for Single Coverage and from $3,300 to $3,400 for Dependent/Family Coverage.
• The Maximum-Out-of-Pocket for the HDHP plan will increase from $3,425 to $3,700 for Single Coverage and from $6,850 to $7,400 for Dependent/Family Coverage.
• Based on changes resulting from recent Federal Law, the County will waive employee cost share on telehealth (medical and behavioral health) for the first 20 visits for HDHP plans.
• Continue funding the Health Savings Account for the HDHP plan with a reduction in employer contribution from $1,200 to $1,000 for Single Coverage and from $2,400 to $2,000 for Dependent/Family Coverage per year.
Waiver Credit:
• Continue Waiver Credit 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 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 health plan must complete a designated preventive screening within the prior 12 months to receive County-funding in their 2026 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 for each eligible employee. The match is made on a dollar-for-dollar basis each pay period up to the cap. 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 2026, is as follows:
Health
Expected Claims $71.9M
Retention & Patient - Centered
Outcome Research Fee $3.5M
Stop Loss Coverage $4.2M
Pharmacy
Expected Claims $28.8M
Total Health and Pharmacy Costs $108.4M
Based on premium rates for 2026, the estimated cost share is as follows:
Employee Portion of Premiums $5.1M (4.7%)
COBRA/Retiree Premiums $1.5M (1.4%)
County Subsidy of Premiums $101.8M (93.9%)
Total Health and Pharmacy Cost $108.4M
County Subsidy of Premiums $101.8M
County Funding of HSA $8.2M
County Funding of Opt-Outs $1.3M
Total Cost to County $111.3M
Motion B. The fiscal impact to the County for the $2,000 per year match based on 6,102 benefit-eligible employees participating is estimated to cost $12.2M per year.