Woodbury County employees speak out against proposed health insurance increases

SIOUX CITY — Woodbury County employees have spoken out against proposed changes to the county's health insurance plans.

The county is proposing to increase the county's deductibles and coinsurance percentages. Numerous county employees attended Tuesday's board of supervisors meetings, concerned about the short notice on the plan changes, not knowing until the supervisors' agenda was posted on Friday, and the size of the increase.

Many of those who spoke out also said the county's benefits are the primary selling points for working in the county and how they recruit new employees.

The Woodbury County Supervisors reviewed the proposed changes and reasons on Tuesday. They decided to postpone voting on the issue to give employees time to review the changes.

The supervisors did approve increasing its employer contribution by 6.5%. The fiscal year 2025/26 budget has $6.9 million for contributions. The increase would add $448,500.

County Human Resources Director Melissa Thomas said over the past several years, the county's self-insured health plan has had a steady rise in medical and prescription claim costs, causing the health plan expenses to outpace both the employee and county contributions.

Last year, the total contributions between the county and employee contributions were $6.7 million, while claims paid out were $8 million, said Ryan Ericson, county budget director.

Ericson said the health fund balances ended with $2,6 million in FY22, $2.1 million in FY23, $1.2 million in FY24, and $100,000 in FY25, but the county had to transfer $725,000 into it, ending at $816,000. He said the current balance is $572,000.

The county offers PPO and HMO plans through Wellmark Blue Cross/Blue Shield.

Current PPO deductible is $250 single and $500 family, with an out-of-pocket max $750 single and $1,250 family. Proposed changes for the PPO plan are to increase the deductible to $1,000 single and $2,000 family, with an out-of-pocket max of $3,000 single and $6,000 family.

Current HMO deductible is $250 single $500 family, with an out-of-pocket max of $750 single and $1,250 family. Proposed changes for the HMO plan are to increase the deductible to $500 single and $1,000 family, with an out-of-pocket max of $1,500 single and $3,000 family.

For both plans, the coinsurance, which is the amount the member pays after the deductible, will change from 10% to 20%.

The changes have a proposed effective date of Jan. 1. The county has until Dec. 10 to submit to Wellmark in order to ensure employees have insurance cards by Jan. 1.

Dawn Norton, a county employee, said she feels blindsided by the changes, looking at a nearly three times increase in their deductibles.

"This was one of the attractive things about working for the county, is having the benefits that we do," she said.

Corey Davis, another county employee, said the increase negates any wage increases the employees received this year. He also expressed concerns about only learning about the changes on Sunday.

William Melville, who is on the county insurance through his family, said he was shocked at a 300 percent increase in the PPO out-of-pocket, and asked for more research to be done.

Secondary Roads Director Laura Sievers said she calculated what employees are making and what they pay if they do max out their deductibles. Currently, it would be three percent of their income. After the increases, it would be between 13% and 20%.

"That's life-changing," she said. "That's choosing to buy groceries and not buy groceries."

She said the county employees continue to make sacrifices for the budget, and the taxpayers don't, adding the county could increase the tax levy to help the employees.

Heather Satterwhite-Van Sickle, board of supervisors executive secretary, said she drove home in tears after seeing the agenda on Friday.

"I know how much more this is going to be out of my pocket; it will affect me personally," she said, adding the changes feel too much, too soon, and the process feels rushed.

Assistant Attorney Joshua Widman said on July 1, the county employees had premium increases, with him personally having a 33 percent premium increase. He also asked the county to look at alternatives to increase to fund balance.

Siouxland District Health Director Kevin Grieme said they have done internal surveys on what makes staff stay with the department. He said of those who have stayed for more than five years, most said the benefits keep them in the position.