Commissioners approve budget amendment using sale proceeds to cover $6M medical‑insurance overage; board debates future bidding for health plan administration

New Hanover County commissioners on June 15 adopted budget amendment BA26‑048, which reallocates proceeds from the sale or reimbursement related to the Bank of America building to cover higher‑than‑budgeted medical insurance costs for county employees.

Commissioner Zapple asked whether the entire $11 million would be used for medical insurance; staff said the county is currently running about $6 million over budget on medical expenses and that the amendment budgets the full proceeds to cover the anticipated shortfall this fiscal year, with any unused funds reverting to fund balance. "We are using one‑time money to close the gap for FY‑26," staff stated during the discussion.

Commissioners pressed staff on whether using one‑time proceeds for recurring costs is prudent and asked how the county will pay for rising premiums in FY‑27. County staff said the budget for next fiscal year anticipates higher medical costs, and the county plans plan changes and cost‑sharing steps to achieve structural balance. Staff also described ongoing work on prescription‑drug strategies that could produce savings.

Board members debated whether to solicit bids for a new third‑party administrator for health benefits in the future. Some commissioners expressed support for competitively testing the market starting next year; staff said the county is under contract through the current plan year (beginning Aug. 1) and recommended a fuller evaluation and outreach before inviting carriers or administrators.

The board approved the budget amendment and agreed to return to the topic with more detailed information and a possible procurement plan early in the next year.