Summary
The Leelanau County Board of Commissioners held a special session on January 9, 2026, to review options for the county's 2026 health insurance renewal ahead of an Executive Session scheduled for January 13. Presentations were given by AJG (Gallagher Insurance), represented by Jeff Nielson and Chris Glass via Zoom, and by BHS Insurance, represented by Pat Dalton and Lew Wolters. Administrator Jim Dyer recommended the Board accept the BHS renewal proposal for 2026, consider fully insured options in the future, and pursue a Request for Proposal (RFP) process in early spring. No formal vote was taken, as this was a discussion-only session ahead of the Executive Session.
Public Comments
Joe Hubbell spoke during the initial public comment period; no further detail on his remarks was recorded. No comments were made during the second public comment period.
Other Business
Commissioner Campbell suggested restructuring public comment to include a separate one-minute general comment period followed by agenda-specific comment, a change Commissioner Robbins said he supported. Robbins also noted the day was National Law Enforcement Appreciation Day. Commissioner Bunek explained the history of retiree health coverage, noting retirees were once on a separate BCBS policy before the County moved to a single self-insured plan. Commissioner Campbell expressed concern to Administrator Dyer about the lack of an RFP process this year and requested a more open, multi-vendor process going forward. Commissioner Wessell said he had not wanted this special meeting scheduled separately from the organizational meeting but found it helpful in the end.
Financial Summary
Administrator Dyer detailed the county's escalating health insurance costs: 2024 actual costs were $1.8 million; the 2025 BCBS renewal projected $2.9 million against a $2.2 million projection from Wolters. The stop loss rose 37.43% (from $890 to $1,200) in 2025. Claims ratios rose from 50% in 2020 to 93% in 2022 and higher in subsequent years, indicating structural risk. Contracts exceeding stop loss rose from 17 in 2022 to a projected 35 by end of 2025. For 2026, Dyer recommended a $2.6 million budget based on a $50,000 stop loss attachment point, requiring a $1.3 million stop loss premium with $1.3 million in reserves for claims. He also recommended a short-term reimbursable cash advance from the Budget Stabilization Fund to cover potential first-quarter cash flow issues. Moving to the West Michigan Health Pool was discussed but ruled out for 2026 due to an unbudgeted claims lag cost of $300,000 to $600,000.
Action Items
Administrator Dyer will prepare an Executive Document Summary (EDS) recommending acceptance of the BHS renewal for the Board's consideration at the January 13 Executive Session. Lew Wolters (BHS) noted the renewal must be finalized with BCBS by January 31, 2026. The Board is expected to consider fully insured options and an RFP process for insurance vendors in early spring 2026.