County staff and TAC outline 8.5% health‑insurance renewal; keeping grandfathered plan would cost ~$182,000

County HR staff and Texas Association of Counties (TAC) benefits specialists briefed the court on the 2026–27 health‑insurance renewal and options for Van Zandt County’s employee plan.

TAC representatives said the county’s current grandfathered plan faces an 8.5% renewal increase for the coming plan year. TAC’s presentation described the benefits and risks of retaining grandfathered status (lower relative premiums and stability of employer contribution rules) versus moving to an ACA‑compliant plan (which would shift preventive‑care costs to $0 but generally have higher premiums and different out‑of‑pocket limits).

Michelle Gford of TAC told the court the current renewal would set employee‑only premiums at about $1,382 starting Oct. 1 (with higher tiers for spouse/children/family), and presented three alternate plan structures that trade deductible and maximum out‑of‑pocket levels for different premium contributions. The group emphasized the longer‑term market volatility: TAC said open‑market renewals elsewhere have exceeded 25% in places this year.

County staff said retaining the current grandfathered plan at the proposed renewal would increase county costs by approximately $936 per covered employee—about $182,000 in total—and that the county must return its selection to the carrier by June 26 to meet the Oct. 1 effective date and avoid administrative delays.

“Keeping your grandfathered status is very important to you guys,” a TAC specialist said, noting that once a group loses grandfather status it cannot be regained and future market dynamics could push out‑of‑pocket maximums and premiums higher.

Action and next steps: Staff said the commissioners will address the renewal as part of upcoming budget workshops and will make a formal approval at the next commissioners court meeting after the budget work session. County HR noted the decision deadline (June 26) to ensure timely enrollment and ID processing for an Oct. 1 plan start.

Community impact and tradeoffs: The court discussed the importance of affordable employee benefits for recruitment and retention, the county’s willingness to absorb some additional cost to protect staff benefits, and the possibility of using new revenue streams (including any future CAD revenue) to help offset increases.

Provenance: Presentation and Q&A occurred during the workshop portion beginning at the agenda item introduced in SEG 1966 and continuing through SEG 2290.