HRM Exec. Dir. Lobrillo stated that multiple County departments participate in
internship programs. However, this is not a centralized function as the departments
prefer to handle the programs on their own. Lobrillo noted that the County offers paid
and unpaid internships. Unless there is a philanthropic purpose to the internship or the
intern is participating for credit hours, the County could not legally have to pay an
intern. Further discussion ensued.
Surges stated that a conversation needs to be had on possible health insurance issues
under Old Business. He stated that the first topic to discuss is the continued shopping
of health insurance providers. Each time, significant savings are found, but often times
it comes with disruption to the carrier. Surges noted that these parameters are shared
with the Committee and they have chosen not to move forward with switching. Given
the County's current budget crisis, he has been advised to direct staff to shop for
insurance carriers again. However, since the County has been shopping in the past
and have been provided cost-saving packages from other providers, but has not made
the switch, many providers are no longer interested in shopping for the County's
business. After several conversations, Surges explained that the overall consensus he
has received is that there is no interest in switching insurance carriers from Blue Cross
Blue Shield (BCBS). However, he noted that there is a potential cost savings to the
County, if a change were to be implemented. Secondly, Surges spoke on the cost
benefits of staying with BCBS, such as saving on weight loss drugs. He stated that the
use of GLP-1 Semaglutide drugs for weight loss have significantly increased. He noted
that these drugs cost the County approximately $500K. Surges asked the Committee if
there was any interest in curbing the $500K expense during the budget crisis, or should
this conversation be discussed at a later time. He requested the Committee to think on
these items and provide their feedback at the next Committee meeting.
Lobrillo explained that when diabetic drugs, such as Mounjaro, are used for weight loss
purposes they are categorized under a different name, which BCBS allows these to be
separated. She stated that BCBS gives the option to include or not include weight loss
medications. If the County decides not to cover weight loss medication under the RX
plan, they can offer a satellite program for weight management, such as the Wondr
Program. Lobrillo stated that the most recent research evidence that the County's
broker can provide regarding weight loss medications could be presented.
Surges stated that a presentation will be provided to the Committee that entails what
the members have requested of staff. Discussion ensued.
Lastly, Lobrillo explained that insurance rates for employees were kept flat this year
due to the County's need to spend down the reserve amount. While she believes
keeping the rates flat for next year's budget is correct, she wanted the Committee to
keep in mind that if cost saving solutions are not found, insurance will significantly
increase for 2027 to accommodate the increase in 2026 and 2027. Lobrillo explained
that health insurance inflation has continued and costs are expected to increase by
approximately $2M to the County's Health Insurance Fund. She stated that the Health
Insurance Fund will be stable, but would not be able to sustain these costs for another
year. She explained that the cost of the plan will need to be decreased or expect the
insurance rates to incline significantly in 2027. Further discussion ensued.
10.
New Business
