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2026/06/23 Workshop Session 9:00 AM
I-ILtU Ub/15/LULb to:zs am KAREN MCQUEEN COUNTY CLERK .T E ofi r. BRAZOS COUNTY, TEXAS S R By: Victoria L McCoy :. • 7 GNrY OF -.t.• BRAZOS COUNTY BRYAN, TEXAS NOTICE OF MEETING AND AGENDA WORKSHOP SESSION BRAZOS COUNTY COMMISSIONERS COURT BRAZOS COUNTY COMMISSIONERS WILL MEET INA WORKSHOP SESSION AS FOLLOWS: MEETING DATE: June 23, 2026 MEETING TIME: 9:00AM MEETING PLACE: Commissioners Courtroom of the Brazos County Administration Building, 200 S. Texas Avenue, Suite 106, Bryan, TX 77803 1. Call to Order 2. Presentation and Discussion of the FY 2026-2027 County Budget regarding Retirement Plan Rate (TCDRS) Presentation and Discussion of the FY 2026-2027 County Budget regarding Insurance Premiums and Contributions (USI) 3. Adjourn The Commissioners Courtroom of the Brazos County Administration Building,200 S.Texas Avenue,Suite 106, Bryan,TX 77803 is wheelchair accessible. Handicap parking spaces are available.Any request for sign interpretive services must be made two working days before the meeting.To make arrangements,please call(979)361-4102. y ' cf-'. • L A� i • • 0F Q� . The following minutes of the Workshop held June 23,2026,have been examined and are approved in open Court this the 7th day of July 2026, in Bryan, Brazos County, Tex Duane Peters Bentley Nettles County Judge Commissioner, Precinct 1 qtr- f—nA— Chuck Konderla Fred Brown Commissioner, Precinct 2 Commissioner, Precinct 3 AL A&.•&.:.::a /ALL Wanda J. Watso Commissioner, -,inct 4 Attest: Karen McQueen County Clerk . T c" NIE OF .. 70, \ „.„....... :'t. 7 ; TY OF 11� MINUTES J U N E 23, 2026 BRAZOS COUNTY COMMISSIONERS COURT WORKSHOP SESSION 1 . Call to Order A workshop session of the Commissioners' Court of Brazos County, Texas was held in the Brazos County Commissioners Courtroom in the Administration Building, 200 South Texas Avenue, in Bryan, Brazos County, Texas, beginning at 9:02 a.m. on Tuesday, June 23, 2026 with the following members of the Court present: Duane Peters, County Judge, Presiding; Bentley Nettles, Commissioner of Precinct 1; Chuck Konderla, Commissioner of Precinct 2, Fred Brown, Commissioner of Precinct 3; Wanda J. Watson, Commissioner of Precinct 4; Karen McQueen, County Clerk, Absent; The attached sheets contain the names of the citizens and officials that were in attendance. 2. Presentation and Discussion of the FY 2026-2027 County Budget regarding Retirement Plan Rate (TCDRS) Presentation and Discussion of the FY 2026-2027 County Budget regarding Insurance Premiums and Contributions (US I) TCDRS Representative Tim Krause provided an overview of the County's retirement plan and employee retirement eligibility. He explained that the Commissioners Court has the opportunity each year to review the plan and determine whether any modifications are necessary. Mr. Krause reported on the current cost of the plan to the County and noted that it remains a strong, conservatively funded retirement program. Commissioner Brown inquired about survivor benefits and how the plan applies to spouses. In response, Mr. Krause outlined the four retirement benefit options available to employees and explained the provisions associated with each option. Following the presentation, Human Resources Director Jennifer Salazar requested direction from the Court regarding the County's elected contribution rate. After discussion, the Court expressed its desire to continue the current elected rate. US I Representatives Bobby Anderson and Brenda Cos then presented information regarding budget considerations for the FY 2027 employee health insurance plan. Mr. Anderson provided an overview of the County's significant medical claims and prescription drug expenditures during FY 2026. Ms. Cos reviewed the health plan cost summary and current enrollment trends. The Court discussed the increasing cost of prescription medications and the impact on the overall health insurance program. Ms. Salazar advised the Court that direction was needed regarding healthcare premiums and employer contributions for FY 2027. She presented the following options for consideration: • Option 1: Increase both County and employee contributions by 11.25 percent. • Option 2: Increase employee contributions by 5 percent, with the County absorbing the remaining increase in costs. • Option 3: The increase absorbed solely by the County. Commissioner Brown inquired about providing employees with a 2.5 percent cost-of- living adjustment (COLA) to help offset higher health insurance premiums. Budget Officer Nina Payne discussed the projected budgetary impact of implementing a 2.5 percent COLA. The Court engaged in further discussion regarding the proposed healthcare contribution options and the potential COLA adjustment. Following deliberation, the Court directed Ms. Salazar and Ms. Payne to prepare additional information outlining the total fiscal impact of each option for further consideration. Ms. Payne requested additional time to complete the necessary calculations and recommended scheduling another budget workshop on July 7, 2026, to present the information. The Court agreed to hold a workshop on that date. 3. Adjourn The meeting was adjourned at 9:55 a.m. Pg ±of 3 BRAZOS COUNTY COMMISSIONER' S COURT ,72..._ DAY OF 20 ch ?'Go A PM, Wors(q Name Organization (PL ASE PRINT) (PLEASE PRINT) AM (r966H.0- U - AXI4 1714 &Ulf N'A Ciccie Lail flz. 0 c)-(irt- 6r RAVoL CbS aS5-- b aW0o4pii Use - ►, (;rat/ L3—) CliPtrie5 /C, e,b re r- L T \64.ntAvx -d Ptivvan-utt‘n WL. c f W1 1. I -3,,,,0kPam. ,ALA 09w9— s re.L4 cv Nt a y 1 13 o 9 c--E: Wc-c3ne `\own f teer V-Klcut Wca.1,.oth\A ‘) .-„_, V co, Oc -f ), a% S!/<ors/4 f ccc t- Pg2-of3 BRAZOS COUNTY COMMISSIONER' S COURT D3 DAY OF J uy\sL , 20 a L cl oO /PM, Woo Name Organization (PLEASE PRINT) (PLEASE PRINT) 4( E rr (c r OC) Vn LA G cGCtf Ct C 13.c -b r- -A,CM‘ i) DA ‹,,,JA (le '714 ,2 j /14v4�,c��-vr vrZ Lwsvn�.r.�-� RD�E�r Ea‘c CALL AIeLL 13C IT Chi m-- - L°LA'"? , ; �• ,Cat•scrfria.1-`44 Z fekh n 61,/ (.0 45, ct,5 Les , Cmektvas \4c� Pg 3of 3 BRAZOS COUNTY COMMISSIONER' S COURT 3 DAY OF Svc , 20 Do A /PM, Wo, st,,oe Name Organization (PLEASE PRINT) (PLEASE PRINT) eC%\r\1 e. ���exs 9�o wmo�,� Co C.1-ex 4c.-Jteyx Mo eeV\ C.o CIS r L V'CC'roY" 0. 1-wv o`- Ptc_Co-t e o C(IL( k t aka-t---t-, ie2zt-L4 TWA MOWS .11\JVC%iZ MA- 4,1 SWOJkireqta51 y na fA v. U )1)1 0 Nt h i9 k dov . Svc . I,r;c vz 7vJs( / 1ti'Jf ? nil la. o c a . FAr i i Wick ) v- Pak l Prise. \ )r 4k t ( (3 S Dw &krdo\l c& Ctrnyn. 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BRAZOS COUNTY BRYAN, TEXAS )EPARTMENT: NUMBER: )ATE OF COURT MEETING: 6/23/2026 TEM: Presentation and Discussion of the FY 2026-2027 County Budget regarding Retirement Plan Rate (TCDRS) Presentation and Discussion of the FY 2026-2027 County Budget regarding Insurance Premiums and Contributions(USI) -O: Commissioners Court )ATE: 04/27/2026 :ISCAL IMPACT: False 3UDGETED: False )OLLAR AMOUNT: $0.00 ATTACHMENTS: File Name Description Type County Budget Workshop Retirement Plan Rate County Budget-Retirement Plan Rate (TCDRS and (TCDRS and Insurance Premiums and Contributions Insurance Premiums and Contributions(USI) Cover Memo (USI).pdf TEXAS A P DI S COUNTY 1 S D TRICT elRETIREMENT SYSTEM Plan Assessment for Plan Year 2027 Brazos County — 120 Participation Date — I/1/1968 It's that time of year again—time to look at your TCDRS retirement plan and decide whether or not your benefits are adequate and affordable.This plan assessment will give you an overview of the benefits you provide as well as how much it will cost to provide these benefits in the upcoming plan year. 2027 Plan Employee Deposit Rate 7% Employer Matching 225% Retirement Eligibility la Age 60 (Vesting) 8 years of service Rule of 75 years total age+ service At Any Age 30 years of service Optional Benefits Partial Lump Sum No Group Term Life None Retirement Plan Funding Total Normal Cost Rate 14.91°,, Employee Deposit Rate -7.00% Employer-Paid Normal Cost Rate 7.91% UAAL/ (OAAL) Rate 6.17% Required Rate 14.08% Elected Rate 17.00% Retirement Plan Rate 17.00% (greater of required and elected rate) Group Term Life Rate N/A Valuation Results (Dec. 31,2025) Actuarial Accrued Liability $404,378,274 Actuarial Value of Assets S352,270.183 Unfunded / (Overfunded) AAL $52,108,091 Funded Ratio 87.1% Notes: Buyback adopted: 1991 Last COLA: 2023 800-651-3848 * TCDRS.ORC/EMPLOYER 1 4/1/2026 What You Are Providing The TCDRS benefit is based on employee deposits,which earn 7%compound interest each year,and employer matching at retirement.The following chart shows the estimated TCDRS benefit as a percentage of final salary prior to retirement for a new hire: of Salary that TCDRS Benefit Replaces at Retirement 120% - Final Salary 100% - 80% - 92° 73% 60% - 53"o 40% - 38'i 20% - 24 0% Hired at 55 Hired at 50 Hired at 45 Hired at 40 Hired at 35 Retired at 65 Retired at 65 Retired at 65 Retired at 65 Retired at 65 Assumptions • Employees are new hires and will work for you until retirement. • Your current plan provisions will remain in effect through an employee's retirement. • Current laws governing TCDRS will continue as they are. • Graded salary scales give bigger raises early in careers,with smaller raises later in careers (see Summary Valuation Report at TCDRS.org/Employer). • Based on Single Life benefit. 800-651-3848 * TCDRS.ORC/EMPLOYER 2 4/1/2026 Reasons for Rate Change Below is a record of your required rate history for your retirement plan over the last five years. 18% - 16% - 14% - 12% - 10% - 8% - 6% - 4% - 2% - 0% 2023 204E 2025 2026 2027 Reasons for Rate Change 2023-2024 2024-2025 2025-2026 2026-2027 Beginning Rate 16.21% 16.02% 15.12% 14.38% Plan Changes Adopted 0.00% 0.00% 0.00% N/A Investment Return 0.30% 0.01% -0.08% -0.17% Elected Rate/Lump Sum -0.04% -0.08% -0.19% -0.25% Demographic/Other Changes -0.45% -0.75% -0.47% 0.00% Assumptions/Methods 0.00% -0.08% 0.00% 0.12% Ending Rate 16.02% 15.12% 14.38% 14.08% Valuation Year 2022 2023 2024 2025 Funded Ratio 84.2% 84.9% 85.9% 87.1% Full details on the valuation calculations are included in the Dec. 31,2025 Summary Valuation Report which will be available mid-May at TCDRS.org/Employer. Next Steps If you are interested in making plan changes,please contact your Account Manager at 800-651-3848.Your benefit selections are due by Dec. 15,2026. 800-651-3848 * TCDRS.ORC/EMPLOYER 3 4/1/2026 USI 2027 BUDGET REVIEW BRAZOS COUNTY June 23, 2026 Bobby Anderson, SVP-Consultant Brenda Cos, VP-Strategic Account Executive www.usi.com THE USI ONE ADVANTAGE® ®2g26 USI Insurance Services.NI rights reserved. 1111116w.- Stewardship & Strategic Planning h° MARKET Meeting Objectives TRENDS Today's Agenda ✓ Identify strategic benefit plan opportunities Market Outlook ✓ Experience Prioritize solutions for 2026 and beyond Projections ✓ Align on near-term key milestones and timeline (-DATA 4. i Appendix DRIVEN INSIGHTS Benchmark SOLUTIONS \ I + • areOutlook USI 2026 Employee Benefits Market Outlook UMW THE USI ONE ADVANTAGE The State of Healthcare in America Many employers have budgeted for a projected 9%increase in medical trend for 2026; however, some are seeing health plan renewals coming back much higher, ranging from 18%to 25%.' As health plan costs continue to rise, employers face unprecedented challenges in managing benefits budgets. Rather than simply absorbing these increases, organizations have an opportunity to rethink their approach to health plan design and funding. TOP 5 Reasons for Healthcare Inflation Healthcare Inflation O High claim volume and increasing costs of large 16.0% claims (e.g., higher rates of late-stage cancer 14.0% 14.1% 10.7% 11.1% 11.4% 11.0% diagnoses and complex health conditions) 12.0% A 10.3% 9.8% 9.9% 10.0% 8.1% 8.5% 0 Post-pandemic health care network contract 8.0% 5.2% 5.3% 5•% 9.s% negotiations and cost-shifting 6.0% 7.9% 4.0% 6.5% 6.8% 7.1% 6.3% 6: 4% 6.8% Continued uncertainty about the impacts of tariffs on s.7% 2.0% medical goods and unknown impacts of Federal cuts o.o% 2.5% to Medicare,Medicaid,and ACA subsidies 2 -2.0% Rising pharmacy costs,driven by the rapid adoption -4.0% -2.1% of GLP-1 s and an expanding pipeline of costly ti b ti ti‘ � ti ti ti~ titi ti3 ti b a 1. 1, 1. 1. 1. 1. 1. 1, 1. 1, 1. 1. lspecialty drugs or•e © Increasing utilization of behavioral health,driven by Medical Trend(%) tPharmacyTrend(%) tioti`O\ longer treatment durations and higher per-episode costs 3 Sources:2024 Segal health Plan Cost Trend Survey Supplement. Fifteen-Year Summary of Selected Medical,Outpatient Rx Dental Trends. What Are the Projected Plan Cost Trends for 2026.Segal. 'httpsWwww.businessgrouphealth.org/resources/2026-employer-health-care-strategy-survey-executive-summary#b-employers-guide-with-view-all z https://www.kff.org/quick-take/tariffs-are-driving-2026-health-insurance-premiums-up/ 'PwC:"No let up in sight:2026 medical cost trend set to grow at 8.5%";accessed October 9,2025,from https://www.pwc.com/us/en/industries/health-industries/library/assets/pwc-behind-the-numbers-2026.pdf 0 2021 USI Insurance Services.MI rights reserved I 4 ± • ow Experience Reporting MEW THE USI ONE ADVANTAGE' Dashboard Experience Summary 2025 2026 YTD 2026 YTD Projection Observations for the 2026 Plan Year: Budget $21,168,831 $8,977,273 2.1% Overview through May on a PEPM basis: Net Costs $22,106,843 $8,651,632 -1.6% Net Position to Budget 104% 96% 101% • The budget is 0.3%higher than the previous year. Net Costs PEPM $1,700 $1,573 -3.4% -No increase to last years rates. • The plan is running at 96%of budget,or$326k under the budget. Average Employees 1,084 1,100 1.8% • The budget is$1,633 and the net cost is$1,573,respectively. Average Members 1,877 1,916 2.2% • Gross Rx Claims make up 32.5%of total paid claims,which is above industry standards(20%-30%). • The top three paid drugs are Zepbound,Ozempic,and Wegovy. Net Administration $3,966,728 $1,825,520 10.9% • Enrollment is 1.5%higher than the previous year. Net Administration PEPM $305 $332 8.9% • Overall,net cost is 7.4%lower than the previous year. Net Claims $18,140,115 $6,826,112 -4.3% Large Claimants: Net Claims PEPM $1,395 $1,241 -6.1% • There are six large claimants over 50%of the$200k Specific Stop Loss Limit(SSL). -One of these claimants is over the SSL by$223k with$423k in claims. Large Claimants 2025 2026 YTD • Large Claimants make up 14%of gross claims. Number of Large Claimants 31 6 Total Paid for Large Claimants $7,378,331 $1,130,981 Claimants Over SSL 11 1 Total Paid Over SSL $2,485,966 $222,644 Monthly PEPM: Budget vs Costs Historical: Budget vs. Net Costs $2,500 $25,000 2026 YTD i$100,000 Large Claimants as a%of Total $2,000 $20,000 - — ru Claims $1,500 — Lim ii r1 $15,000F $10,000 ®$5,000 A 4,4 N $500 o o $� $0 2024 PEPY 2025 PEPY 2026 PEPY Jan-26 Feb-26 Mar-26 Apr-26 May 26 Projection •Budget •Net Cost •Budget •Net Claims ■Large Claimants •Other Claims ®2021 USI insurance Senn 6 THE USI ONE ADVANTAGES Cost Summary _____ Enrollment Fixed Cost Forecast alibiar, Paid Claims Agg Ratio Total Plan Costs Position Employer Position Claims %Paid Total Total Admin Stop Loss Total Maximum Medic ate Stop Loss Over Stop Net Total t Claims/ Budget Net Cost Budget Minus LE ER Expense by Employees Members Fees Premium Claims Claims^ s Reimbursement Claims InIS Net Cost Contributions • Loss Employe Jan-26 1,100 1,923 $56,749 $308,451 $365,200 $2,025,661 $831,820 $458,392 $0 $0 $0 $1,290,21 64% $1,796,668 $1,655,412 $141,256 $239,068 $1,416,344 86% Feb-26 1,094 1,907 $56,375 $306,769 $363,144 $2,014,612 $910,594 $470,665 ($475,327) $0 $0 $905,932 69% $1,786,614 $1,269,076 $517,538 $237,510 $1,031,566 81% Mar-26 1,094 1,912 $56,483 $306,769 $363,252 $2,014,612 $1,595,269 $592,000 $0 ($222,644) $222,644 $1,964,62' 98% $1,787,490 $2,327,876 ($540,386) $238,386 $2,089,490 90% Apr-26 1,104 1,920 $56,784 $309,573 $366,356 $2,033,027 $936,611 $514,784 $0 $0 $0 1=a 71% $1,801,080 $1,817,752 ($16,672) $237,816 $1,579,936 87% May-26 1,107 1,920 $57,155 $310,414 $367,569 $2,038,552 $1,104,401 $551,922 ($442,375) $0 $0 $1,213,9,: 81% 51,805,421 51,581,516 $223,905 $237,909 $1,343,607 85% 5,499 9,582 $283,545 =$1,825,520 $10,126,463 $5,378,611111587,763 -Ai MI& 76% $8,977,273 $8,651,632 $325,641 $1,190,689 $7 460,943 86 5,395 9,352 $261,260 =II$1,645,401 $5,306,98T2,470,613 ,890)likiiiiiall MI 72% $8,777,829 $8,368,289 $409,540 $1,138,509 $7,229,780 86% • .1fference 1.9% 2.5% 8.5% 11.4% 10.9% 1.4% 4.7% AIM--® 5.6% 2.3% 3.4% -20.5% 4.6% 3.2% -0.2% Budget vs. Costs $2,500,000 $2,000,000 $ 6 $1.500,000 $ $ 2 $ 4 $ 0 $ a2 $ 1 $ 6 $1,000,000 $ 6 $500,000 $0 Jan-26 Feb-26 Mar-26 Apr-26 May-26 ■Budget •Net Cost Note: Rx Rebate increase from 50%to 75%in 2024 when we moved the Stop Loss to TAC. Rx Rebate increase from 75%to 80%in 2026. THE USI ONE ADVANTAGE Prior Cost Summary Enrollment Fixed Cost Forecast Agg Ratio Total Plan Costs Position Employer Position Budget Total Total Admin Stop Loss Maximum Net Claims/ EE %Paid Total Budget Net Cost Mat us Net ER Expense Employees Members Fees Premium Claims Max Claims t Contributions by FR Jan-25 1,085 1,892 $52,541 $278,368 $330,909 $1,866,309 $922,912 $475,059 $0 $0 $0 $1,397,971 75% $1,766,971 $1,728,880 $38,091 $230,611 $1,498,269 87% Feb-25 1,080 1,876 $52,403 $277,085 $329,488 $1,857,708 $1,283,451 $378,068 ($302,441) ($201,664) $201,664 $1,157,414 79% $1,758,100 $1,486,902 $271,198 $228,820 $1,258,082 85% Mar-25 1,079 1,874 $52,103 $276,828 $328,931 $1,855,988 $972,700 $547,751 $0 ($38,405) $38,405 $1,482,046 80% $1,756,041 $1,810,977 ($54,936) $228,177 $1,582,800 87% Apr-25 1,076 1,854 $52,161 $276,059 $328,220 $1,850,828 $935,916 $553,913 $0 ($1,085) $1,085 $1,488,744 80% $1,748,860 $1,816,964 ($68,104) $225,244 $1,591,720 88% May-25 1,075 1,856 $52,052 $275,802 $327,854 $1,849,108 $1,192,002 $515,822 ($468,450) ($42,661) $42,661 $1,196,713 90% $1,747,857 $1,524,567 $223,290 $225,657 $1,298,910 85% Jun-25 1,081 1,861 $52,304 $277,341 $329,646 $1,859,428 $1,262,243 $548,426 $0 ($94,441) $94,441 $1,716,228 92% $1,758,075 $2,045,874 ($287,799) $227,379 $1,818,495 89% Jul-25 1,089 1,877 $52,789 $279,394 $332,183 $1,873,189 $1,629,461 $591,646 $0 ($193,843) $193,843 $2,027,263 108% $1,771,355 $2,359,446 ($588,091) $229,331 $2,130,115 90% Aug-25 1,087 1,881 $52,692 $278,881 $331,572 $1,869,749 $1,651,631 $646,085 ($386,659) ($325,776) $325,776 $1,585,280 105% $1,769,493 $1,916,853 ($147,360) $230,301 $1,686,552 88% Sep-25 1,091 1,886 $52,833 $279,907 $332,740 $1,876,629 $825,211 $596,524 $0 ($265,776) $265,776 $1,155,959 62% $1,775,857 $1,488,698 $287,159 $231,001 $1,257,697 84% Oct-25 1,083 1,880 $52,396 $277,854 $330,250 $1,862,868 $1,305,165 $611,907 $0 ($358,164) $358,164 $1,558,908 84% $1,764,322 $1,889,158 ($124,836) $232,210 $1,656,948 88% Nov-25 1,087 1,885 $52,708 $278,881 $331,589 $1,869,749 $1,259,995 $548,275 ($375,160) ($125,451) $125,451 $1,307,660 90% $1,770,789 $1,639,249 $131,540 $231,597 $1,407,652 86% Dec-25 1,093 1,899 $52,927 $280,420 $333,347 $1,880,069 $2,293,096 $611,532 $0 ($838,698) $838,698 $2,065,929 110% $1,781,111 $2,399,277 ($618,166) $233,423 $2,165,854 90% 13,006 22,521 $629,908$3,336,819 $3,966,728 $22,371,621, ($1,532,709) ($2,485,966) 88% $21,168,831 $22,106.843 52,753,751 $19,353,092 88% Budget vs Costs $3,000,000 $2,500,000 - $2,000,000 $1,500,000 $1,000,000 - 11 .as. $500,000 - Int I $0 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 ■Budget •Net Cost ©2021 USI Insurance Services.All rights reserved I 8 THE USI ONE ADVANTAGE Rolling 12 Claims Only Enrollment Paid Claims Claims Per EE Rx Total Gross Claims Over Stop Rx Rebates/ Monthly Annual %Increase Month Total Employees''oiling 12 Month Medical Claims Claims Runout Claims Loss Settlement Net Total Claims oiling 12 Months Net Claims/ Net Claims/ EE EE Jan-24 1,039 12,149 $1,734,000 $401,835 $0 $2,135,835 $407,520 $0 $1,728,315 $14,496,980 $1,205 $14,456 10.1% Feb-24 1,043 12,208 $704,159 $413,850 $0 $1,118,009 $3,689 ($312,814) $801,506 $14,346,139 $1,187 $14,239 7.4% Mar-24 1,058 12,280 $1,048,749 $411,210 $0 $1,459,959 $273,918 $0 $1,186,041 $13,985,079 $1,151 $13,814 1.2% Apr-24 1,053 12,341 $773,248 $491,786 $0 $1,265,034 $77,731 $0 $1,187,303 $14,065,645 $1,152 $13,826 0.7% May-24 1,050 12,389 $794,243 $450,652 $0 $1,244,895 $58,070 ($295,602) $891,222 $13,702,368 $1,116 $13,390 Jun-24 1,061 12,447 $615,807 $487,790 $0 $1,103,597 $54,358 $0 $1,049,239 $13,513,903 $1,095 $13,140 -7.7% Jul-24 1,060 12,502 $3,490,370 $455,195 $0 $3,945,565 $2,828,173 $0 $1,117,392 $13,557,958 $1,094 $13,132 -7.5% Aug-24 1,062 12,547 $1,095,234 $447,372 $0 $1,542,606 $192,405 ($375,440) $974,761 $13,542,368 $1,088 $13,056 -7.2% Sep-24 1,060 12,587 $757,066 $562,867 $0 $1,319,932 $219,799 $0 $1,100,133 $13,537,173 $1,083 $12,994 -8.3% Oct-24 1,068 12,628 $795,503 $579,624 $0 $1,375,127 $185,409 $0 $1,189,719 $13,632,885 $1,087 $13,039 -7.8% Nov-24 1,067 12,663 $734,180 $462,452 $0 $1,196,632 $121,152 ($280,825) $794,655 $13,224,249 $1,051 $12,608 -10.9% Dec-24 1,068 12,689 $1,096,895 $667,266 $0 $1,764,161 $340,620 $0 $1,423,541 $13,443,827 $1,065 $12,775 -9.8% Jan-25 1,085 12,735 $922,912 $475,059 $0 $1,397,971 $0 $0 $1,397,971 $13,113,483 $1,036 $12,427 -14.0% Feb-25 1,080 12,772 $1,283,451 $378,068 $0 $1,661,519 $201,664 ($302,441) $1,157,414 $13,469,392 $1,062 $12,738 -10.5% Mar-25 1,079 12,793 $972,700 $547,751 $0 $1,520,451 $38,405 $0 $1,482,046 $13,765,397 $1,081 $12,971 -6.1% Apr-25 1,076 12,816 $935,916 $553,913 $0 $1,489,829 $1,085 $0 $1,488,744 $14,066,838 $1,101 $13,217 -4.4% May-25 1,075 12,841 $1,192,002 $515,822 $0 $1,707,824 $42,661 ($468,450) $1,196,713 $14,372,328 $1,123 $13,481 Jun-25 1,081 12,861 $1,262,243 $548,426 $0 $1,810,669 $94,441 $0 $1,716,228 $15,039,317 $1,173 $14,082 7.2% Jul-25 1,089 12,890 $1,629,461 $591,646 $0 $2,221,106 $193,843 $0 $2,027,263 $15,949,188 $1,242 $14,905 13.5% Aug-25 1,087 12,915 $1,651,631 $646,085 $0 $2,297,716 $325,776 ($386,659) $1,585,280 $16,559,707 $1,288 $15,451 18.3% Sep-25 1,091 12,946 $825,211 $596,524 $0 $1,421,735 $265,776 $0 $1,155,959 $16,615,533 $1,289 $15,468 19.0% Oct-25 1,083 12,961 $1,305,165 $611,907 $0 $1,917,072 $358,164 $0 $1,558,908 $16,984,722 $1,315 $15,781 21.0% Nov-25 1,087 12,981 $1,259,995 $548,275 $0 $1,808,271 $125,451 ($375,160) $1,307,660 $17,497,727 $1,352 $16,219 28.6% Dec-25 1,093 13,006 $2,293,096 $611,532 $0 $2,904,628 $838,698 $0 $2,065,929 $18,140,115 $1,400 $16,795 31.5% Jan-26 1,100 13,021 $831,820 $458,392 $0 $1,290,213 $0 $0 $1,290,213 $18,032,357 $1,389 $16,670 34.1% Feb-26 1,094 13,035 $910,594 $470,665 $0 $1,381,259 $0 ($475,327) $905,932 $17,780,875 $1,367 $16,406 28.8% Mar-26 1,094 13,050 $1,595,269 $592,000 $0 $2,187,269 $222,644 $0 $1,964,625 $18,263,454 $1,403 $16,831 29.8% Apr-26 1,104 13,078 $936,611 $514,784 $0 $1,451,395 $0 $0 $1,451,395 $18,226,105 $1,398 $16,779 27.0% May-26 1,107 13,110 $1,104,401 $551,922 $0 $1,656,323 $0 ($442,375) $1,213,948 $18,243,340 $1,398 $16,775 0 2021 USI Insurance Services.All rights reserved I 9 THE USI ONE ADVANTAGES Historical Cost Summary Budget vs. Net Costs $25,000 $20,000 $15,000 $10,000 $5,000 - $0 2022 PEPY 2023 PEPY 2024 PEPY 2025 PEPY 2026 PEPY Projection ■Budget ■Net Costs Average Gross Medical Gross Rx Rx Rebate Stop Loss Net Total Fixed Time Period Employees Budget Claims Claims Settlement Reimbursement Net Claims Costs/Bud Costs Net Costs 2022 Plan Year 980 $18,344,193 $8,768,495 $6,121,307 ($576,272) ($1,222,063) $13,091,466 90.2% $3,463,248 $16,554,714 2023 Plan Year 1,008 $19,197,676 $11,195,182 $6,611,976 ($766,570) ($2,865,901) $14,174,686 89.8% $3,062,910 $17,237,596 2024 Plan Year 1,057 $20,727,347 $13,639,453 $5,831,900 ($1,264,681) ($5,640,204) $12,566,467 76.9% $3,366,972 $15,933,440 2025 Plan Year 1,084 $21,168,831 $15,533,782 $6,625,009 ($1,532,709) ($2,485,966) $18,140,115 104.4% $3,966,728 $22,106,843 2026 Plan Year Projection 1,104 $21,615,220 $14,819,564 $6,710,842 ($1,757,463) ($2,417,263) $17,355,681 100.6% $4,398,500 $21,754,180 Change from Change from Change from Time Period Budget prior Year Net Claims Prior Year Net Costs Prior Year 2022 PEPY $18,719 N/A $13,359 N/A $16,893 N/A 2023 PEPY $19,045 1.7% $14,062 5.3% $17,101 1.2% 2024 PEPY $19,610 3.0% $11,889 -15.5% $15,074 -11.9% 2025 PEPY $19,528 -0.4% $16,734 40.8% $20,394 35.3% 2026 PEPY Projection $19,579 0.3% $15,721 -6.1% $19,705 -3.4% ©2021 USI Insurance Services All rights reserved I 1 0 THE USI ONE ADVANTAGE" Enrollment History Enrollment by Month and Tier 1200 1000 800 600 400 200 0 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 ■EE Only ■EE+SP ■EE+Ch(ren) EE+Fam Average Enrollment by Year by Tier 2026 YTD Enrollment Distribution 800 700 688 691 63% 600 500 400 300 197194 200 112118 100 ■ 8� 9% *NNW I 1% 0 EE Only EE+SP EE+Ch(ren) EE+Fam 17% •Prior Year: 1/2025- 12/2025 •EE Only •EE+SP • EE+Ch(ren) EE+Fam ■Current:01/2026-05/2026 ©2021 USI Insurance Services.All nghts reserved 1 1 THE USI ONE ADVANTAGES Multi Year Trend Actual Medical and Rx PEPY versus Trend $30,000 - $25,000 - $21,731 $23,830 $18,227 $19,816 $20,000 - $16,893 � $15,000 $20,3941 $19,705 $16,893 $17,101 $10,000 $15,074 $5,000 $0 r 2022 2023 2024 2025 2026 —a—Net Costs PEPY tTrended Claims Costs PEPY Actual Costs 2022 2023 2024 2025 2026 Net Costs $16,554,714 $17,237,596 $15,933,440 $22,106,843 $21,754,180 Net Costs PEPY $16,893 $17,101 $15,074 $20,394 $19,705 Change from Prior Year n/a 1.2% -11.9% 35.3% -3.4% Average Enrollment 980 1,008 1,057 1,084 1,104 Trended Claims Costs 2022 2023 2024 2025 2026 Trended Claims Costs PEPY $16,893 $18,227 $19,816 $21,731 $23,830 Observed Blended Trend (80%med/20%rx) 7.2% 7.9% 8.7% 9.7% 9.7% Medical 6.9% 7.3% 8.1% 9.2% 9.2% Prescription 8.6% 10.3% 1 1.2% 1 1.5% 1 1.5% r. 2021 USI Insurance Services.All rights reserved I 12 THE USI ONE ADVANTAGE Large Claimants Paid Claims>$100,000 Amount Claims Over SSL Reimbursements Relationship Diagnosis Plan Status Claimant 1 $422,644 $222,644 ($222,644) DEP Z3831 -Twin liveborn infant,delivered by cesarean PPO Plan Active Claimant 2 $192,037 SUB F4329-Adjustment disorder with other symptoms PPO Plan Active Claimant 3 $162,699 SUB C5031 1 -Malignant neoplasm of lower-inner quadrant of right PPO Plan Active female breast Claimant 4 $148,157 SPS M4035-Flatback syndrome,thoracolumbar region PPO Plan Active Claimant 5 $103,129 SUB D708-Other neutropenia PPO Plan Active Claimant 6 $102,314 SUB Z510-Encounter for antineoplastic radiation therapy PPO Plan Active Total $1,130,981 $222,644 ($222,644) 2026 YTD>_ $100,000 Large Claimants as a Category Total %of Total of Total Claims Claims>$200,000 $422,644 5.3% Claims$150,000-$199,999 $354,737 4.5% Claims$100,000-$149,999 $353,600 4.4% 14% Other Claims $6,835,478 85.8% Total $7,966,459 100.0% 86% ■Large Claimants •Other Claims ®2021 USI Insurance Sennces.All nghts rese,ved I I ? THE USI ONE ADVANTAGE Top Rx Top Drugs Paid Drug Name Generic Available #Scripts Total Paid Average$Per Script 1 Zepbound No 456 $298,609 $654.85 2 Ozempic No 347 $235,953 $679.98 3 Wegovy No 235 $206,805 $880.02 4 Takhzyro No 10 $174,709 $17,470.94 5 Mounjaro No 164 $141,179 $860.85 6 Enbrel Sureclick No 23 $1 15,467 $5,020.31 7 Dupixent No 31 $115,433 $3,723.64 8 Ibrance No 6 $91,878 $15,313.04 9 Rinvoq No 17 $82,665 $4,862.65 10 Trikafta No 3 $75,616 $25,205.39 Totals 1,292 $1,538,315 $1,190.65 All Other 14,560 $1,049,448 $72.08 Total All 15,852 $2,587,763 $163.25 Top Drugs by Number of Scripts Drug Name Generic Available #Scripts Total Paid Average$Per Script 1 Zepbound No 456 $298,609 $654.85 2 Atorvastatin Calcium Yes 382 $2,993 $7.83 3 Amlodipine Besylate Yes 370 $230 $0.62 4 Ozempic No 347 $235,953 $679.98 5 Rosuvastatin Calcium Yes 302 $2,242 $7.42 6 Levothyroxine Sodium Yes 296 $234 $0.79 7 Losartan Potassium Yes 295 $132 $0.45 8 Amphetamine/Dextroampheta Yes 291 $6,867 $23.60 9 Pantoprazole Sodium Yes 245 $326 $1.33 10 Wegovy No 235 $206,805 $880.02 Totals 3,219 $754,391 $234.36 All Other 12,633 $1,833,372 $145.13 Total All 15,852 $2,587,763 $163.25 ©2021 USI Insurance Services.All rights reserved 1 1 4 THE USI ONE ADVANTAGE. Dental Cost Summary Budget vs. Actual Net Cost $70,000 $60,000 -664,54: 663.77 - - $50,000 457,00 , 160,51. I52951 $30,000 I I I I I $20,000 ' I I _ I I $10,000 -- ' - - - $0 Jan-26 Feb-26 Mar-26 Apr-26 May-26 ■Budget •Actual Cost Enrollment Fixed Cost Paid Claims Claims PEPM Total Plan Cost Employer Position Position Month Total Admin Fees Dental Claims Claims/EE Budget Actual Cost EE Contributions ER Expense %Paid by Budget Minus Employees Employer Actual Jan-26 1,026 $2,440 $54,565 $53.18 $59,904 $57,004 59,904 (2,900) -5.1% $2,899.54 Feb-26 1,021 $2,430 $62,118 $60.84 $59,529 $64,548 59,529 5,019 7.8% ($5,018.61) Mar-26 1,021 $2,430 $61,343 $60.08 $59,535 $63,773 59,535 4,238 6.6% ($4,237.86) Apr-26 1,032 $2,456 $58,062 $56.26 $59,774 $60,518 59,774 744 1.2% ($743.84) May-26 1,035 $2,463 $50,488 $48.78 $59,805 $52,951 59,805 (6,854) -12.9% $6,853.63 Totals 5,135 $12,219 $286,575 $55.81 $298,547 $298,794 298,547 247 0.1% ($247) 02021 USI Insurance Services.All rights reserved I 15 THE USI ONE ADVANTAGE. Dental Prior Cost Summary Budget vs. Actual Net Cost $70,000 $60,000 �+ c„ I 0 o v •0 0 9 0 p, cn I tb A O� Ote$40000 - I _ I x Io iA $30000 . IA� I I I 4e CAD$20,000 I II I I ^'$10,000 I . I I I I - $0 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 •Budget •Actual Cost Fixed Cost Paid Claims Claims PEPM Total Plan Cost Employer Position Position Month Total Employees Admin Fees Dental Claims Claims/EE Budget Actual Cost EE Contributions ER Expense %Paid by Budget Minus Employer Actual Jan-25 1,008 $2,397 $56,281 $55.83 $65,248 $58,677 65,248 (6,571) -11.2% $6,570.68 Feb-25 1,000 $2,375 $53,439 $53.44 $64,540 $55,814 64,540 (8,726) -15.6% $8,725s1 Mar-25 1,002 $2,380 $49,961 $49.86 $64,504 $52,341 64,504 (12,163) -23.2% $12,162.69 Apr-25 996 $2,366 $57,439 $57.67 $63,906 $59,805 63,906 (4,101) -6.9% $4,101.12 May-25 996 $2,363 $58,076 $58.31 $64,018 $60,440 64,018 (3,578) -5.9% $3,578.18 Jun-25 1,000 $2,373 $58,238 $58.24 $64,444 $60,611 64,444 (3,833) -6.3% $3,832.73 Jul-25 1,008 $2,394 $63,696 $63.19 $64,848 $66,090 64,848 1,242 1.9% ($1,242.00) Aug-25 1,008 $2,394 $49,062 $48.67 $65,064 $51,456 65,064 (13,608) -26.4% $13,607.73 Sep-25 1,016 $2,413 $53,625 $52.78 $65,264 $56,038 65,264 (9,226) -16.5% $9,225.82 Oct-25 1,010 $2,401 $51,766 $51.25 $65,018 $54,167 65,018 (10,851) -20.0% $10,851.02 Nov-25 1,015 $2,416 $36,612 $36.07 $65,460 $39,028 65,460 (26,432) -67.7% $26,432.19 Dec-25 1,018_ $2,423 $51,602 $50.69 $65,776 $54,024 65,776 (11,752) -21.8% $11,751.58 Totals 12,077 $28,696 $639,797 $52.98 $778,090 $668,492 778,090 (109,598) -16.4% $109,598 0 2021 USI Insurance Services.All nghts reserved 1 16 Projections THE USI ONE ADVANTAGE Projections, Budget, Employee Contribution Historical Plan Year Projection Budget Budget PEPM Budget PEPY EE Contributions 2022 +4.2% +4% $1,326 $15,912 +11.2% 2023 -9.6% +3.5% $1,373 $16,476 No Increase 2024 -9.4% +3% $1,416 $16,992 No Increase 2025 -1.9% 0% $1,416 $16,992 No Increase 2026 -8.53% 0% $1,416 $16,992 No Increase ©2021 USI Insurance Services.NI rights reserved 1 1 8 THE USI ONE ADVANTAGE Health Plan Projection Renewal tion Claim Development Medical Rx PEPM Paid Claims $15,605,496 $5,062,638 Total Large Claims in Excess of ISL($200k) ($3,223,793) ($1,150,223) Benefit Adjustment $369,534 $1 16,767 Adjusted Paid Claims $12,751,237 $4,029,182 Annual Trend 6.0% 10.0% Midpoint Months 20.0 19.0 Applied Trend 10.2% 16.3% Trended Claims $14,051,697 $4,685,493 Portion of Large Claims up to ISL $1,391,945 $608,055 Renewal Period: January 2027-December 2027 Adjusted Trended Claims $15,443,641 $5,293,549 Experience Period: June 2025-May 2026 Total Subscribers 13,078 13,110 Enrollment Period: May 2025-April 2026 Adjusted Trended Claims(PEPM) $1,180.89 $403.78 Current Employees 1,107 1,107 Current Enrolled Employees: 1,107 Total Projected Trended Claims $15,686,904 $5,363,806 Current Enrolled Members: 1,920 Total Projected Trended Claims(PEPM) $1,584.67 Claim Period Weighting 100% Total Experience Pro'ection $21,050,710 $1,584.67 Fixed Costs ASO Fee(PEPM) $549,982 $41.40 Rx Rebate Credit(PEPM) ($1,601,918) ($120.59) ISL Rate(PEPM) $4,067,654 $306.21 ASL Rate(PEPM) $27,099 $2.04 PCORI Fee(PEPM) $8,236 $0.62 Total Fixed Costs $3,051,053 $229.68 Needed Premium Equivalents $24,101,763 $1,814.35 Current Premium Equivalents $21,665,052 $1,630.91 Needed Change to Current Premium Equivalents 11.25'0 2021 USI Insurance Services.All rights reserved I 19 THE USI ONE ADVANTAGE' Health Plan Benchmark Brazos CountyMb Benchmark 2026 PPO Benchmark 1 Benchmark 2 Benchmark 3 PLAN DESIGN&COST SHARING Deductible(Ind/Fam) $1,000/$2,000 $1,500/$3,000 $1,000/$2,250 $2,500/$6,000 Member Coinsurance 80% 80% 80% 80% Out-of-Pocket Max(Ind/Fam) $3,500/$7,000 $4,500/$9,000 $3,500/$7,000 $6,000/$12,700 MEDICAL SERVICES Primary Care Visit $25 Copay $25 Copay $25 Copay $30 Copay P Y Specialist Visit $35 Copay $40 copay $35 copay $60 copay P Y Urgent Care $50 Copay $50 copay $40 copay $75 copay Benchmark 1: Group Size-1,000+Employees Emergency Room $150 Copay+20% $250 Copay $150 Copay $400 Copay • 880 participants Inpatient Hospital 80%after deductible $300 Copay $250 Copay $350 Copay PRESCRIPTION DRUGS Benchmark 2: Industry-State and Local • Retail Co $10 Copay/20% $10 Copay/20% $10 Copay/20% 441 participants pays Tier 1 $10 Copay Coinsurance Coinsurance Coinsurance Retail Copays Tier 2 20%with$25 Min/$100 Max $35 Copay/25% $30 Copay/20% $45 Copay/30% Benchmark 3: State-Texas Coinsurance Coinsurance Coinsurance 1,337 participants Retail Copays Tier 3 20%vwith$40 Min/$100 Max $60 Copay/30% $50 Copay/35% $80 Copay/20% Coinsurance Coinsurance Coinsurance MONTHLY EMPLOYEE CONTRIBUTIONS Employee Only I $138.00 $176.00 $106.00 $164.00 Employee+Spouse $586.00 $520.00 $385.00 $687.00 Employee+Children $414.00 $454.00 $360.00 $546.00 Employee+Family I $786.00 $725.00 $504.00 $1,029.00 MONTHLY WELLNESS EMPLOYEE CONTRIBUTIONS Employee Only I $63.00 Employee+Spouse $511.00 Employee+Children $339.00 Employee+Family I $711.00 s 2021 USI Insurance Services.All rights reserved I 20 THE USI ONE ADVANTAGE. Budget/Contributions Monthly Medical Totals 2026(Current PY) PPO Plan Subs Est.Employer Cost Employee $63.00 $1,416.00 $1,479.00 95.74% 700 $ 991,200 $ 1,035,300 Employee+Spouse $511.00 $1,416.00 $1,927.00 73.48% 117 $ 165,672 $ 225,459 Employee+Children $339.00 $1,416.00 $1,755.00 80.68% 194 $ 274,704 $ 340,470 Employee+Family $711.00 $1,416.00 $2,127.00 66.57% 96 $ 135,936 $ 204,192 Totals 1,107 $ 1,567,512 $ 1,805,421 Annual: $ 18,810,144.00 $ 21,665,052.00 Monthly Medical Totals(2027 PY) PPO Plan Subs Est.Employer Cost Employee $70.09 $1,575.26 $1,645.35 95.74% 700 $ 1,102,682 $ 1,151,742 Employee+Spouse $568.47 $1,575.26 $2,143.73 73.48% 117 $ 184,305 $ 250,817 Employee+Children $377.13 $1,575.26 $1,952.39 80.68% 194 $ 305,600 $ 378,763 Employee+Family $790.97 $1,575.26 $2,366.23 66.57% 96 $ 151,225 $ 227,158 OVERALL 1,107 $ 1,743,813 $ 2,008,480 ANNUAL 13,284 $ 20,925,754 $ 24,101,763 CHANGE(%) 14.1% 14.4% Annual: $ 20,925,754 $ 24,101,763 0 2021 USI Insurance Services.Al rights reserved 1 2 1 THE USI ONE ADVANTAGE. Dental Plan Projection Renewal Calculation Claim Development Dental PEPM Paid Claims $651,175 Annual Trend 4.0% Midpoint Months 15.0 Applied Trend 5.0% Adjusted Trended Claims $683,895 Renewal Period: January 2027-December 2027 Total Subscribers 12,171 Experience Period: June 2025-May 2026 Adjusted Trended Claims(PEPM) $56.19 Enrollment Period: May 2025-April 2026 Current Employees 1,035 Current Enrolled Employees: 1,107 Total Projected Trended Claims $697,887 Current Enrolled Members: 1,920 Claim Period Weighting 100% Total Experience Projection $697,887 $56.19 Fixed Costs ASO Fee(PEPM) $29,560 $2.38 Total 2026 Premium Equivalents $727,446 $58.57 Current Budget $717,660 $57.78 Needed Change to Current Premium Equivalents 1.4% I 22 Appendix Benchmark Proposed Medical & Dental Rates For 2027 Medical County Contribution 2026 2027 $ Increase Per Employee Monthly $1 ,416 $1 ,610 $194.00 Yearly $16,992 $19,320 $2,328.00 Employee Premiums Medical (Monthly) 2026 2027 $ Increase Employee Only $138 $138 $0 Employee + Spouse $586 $586 $0 Employee + Children $414 $414 $0 Employee + Family $786 $786 $0 Wellness Rewards Program ($75/Month Discount On Your Medical Premiums) 2026 2027 $ Increase Employee Only $63 $63 $0 Employee + Spouse $511 $511 $0 Employee + Children $339 $339 $0 Employee + Family $711 $711 $0 Dental Employee Contributions 2026 2027 $ Increase Employee Only $32 $33 $1 Employee + Spouse $85 $86 $1 Employee + Children $74 $75 $1 Employee + Family $133 $134 $1 Questions? Contact Human Resources at ext. 4181 . Proposed Medical & Dental Rates For 2027 Medical County Contribution 2026 2027 $ Increase Per Employee Monthly $1 ,416 $1 ,575 $159.00 Yearly $16,992 $18,900 $1 ,908.00 Employee Premiums Medical (Monthly) 2026 2027 $ Increase Employee Only $138 $145 $7 Employee + Spouse $586 $643 $57 Employee + Children $414 $453 $39 Employee + Family $786 $865 $79 Wellness Rewards Program ($75/Month Discount On Your Medical Premiums) 2026 2027 $ Increase Employee Only $63 $70 $7 Employee + Spouse $511 $568 $57 Employee + Children $339 $378 $39 Employee + Family $711 $790 $79 Dental Employee Contributions 2026 2027 $ Increase Employee Only $32 $33 $1 Employee + Spouse $85 $86 $1 Employee + Children $74 $75 $1 Employee + Family $133 $134 $1 Questions? Contact Human Resources at ext. 4181 . Proposed Medical & Dental Rates For 2027 Medical County Contribution 2026 2027 $ Increase Per Employee Monthly $1 ,416 $1 ,600 $184.00 Yearly $16,992 $19,200 $2,208.00 Employee Premiums Medical (Monthly) 2026 2027 $ Increase Employee Only $138 $141 $3 Employee + Spouse $586 $611 $25 Employee + Children $414 $431 $17 Employee + Family $786 $821 $35 Wellness Rewards Program ($75/Month Discount On Your Medical Premiums) 2026 2027 $ Increase Employee Only $63 $66 $3 Employee + Spouse $511 $536 $25 Employee + Children $339 $356 $17 Employee + Family $711 $746 $35 Dental Employee Contributions 2026 2027 $ Increase Employee Only $32 $33 $1 Employee + Spouse $85 $86 $1 Employee + Children $74 $75 $1 Employee + Family $133 $134 $1 Questions? Contact Human Resources at ext. 4181 . • 2026 Employee Insurance Budget Review Executive Summary `•�� 0 June 23, 2026 — Commissioners Court G•i'r ut e�� Prepared By: Human Resources & USI Brazos County remains committed to providing a comprehensive and competitive employee benefits program while balancing the fiscal responsibilities of the County. Through careful plan management, strategic oversight, and ongoing monitoring of claims activity, the County has successfully maintained stable employee medical premiums and County contribution levels for several years despite significant increases in healthcare costs nationwide. Based on current experience through May 2026 and projections for the 2027 plan year, several key outcomes and recommendations have been identified: • Strong Financial Stewardship Continues: Through May 2026, the health plan is operating approximately $326,000 under budget, with overall plan costs running at approximately 96% of budgeted expenditures. This continues Brazos County's long-standing practice of closely monitoring plan performance and implementing proactive cost containment strategies. • County Continues to Bear the Majority of Healthcare Costs: Brazos County currently pays approximately 86% of total medical and pharmacy costs, allowing employee premiums to remain affordable while maintaining a highly competitive benefits package. • Premium Stability Has Been Maintained for Multiple Years: Since 2024, the County has maintained its monthly medical contribution at $1,416 per employee and has not increased employee medical premiums. This stability has been achieved despite national healthcare trends consistently ranging between 8% and 11% annually. • Healthcare Costs Continue to Rise Nationwide: Healthcare inflation, increasing utilization, specialty medications, and high-cost prescription drugs continue to place significant pressure on employer-sponsored health plans across the country. USI projects that Brazos County's health plan will require approximately an 11.25% increase in premium equivalents for the 2027 plan year in order to maintain current benefit levels and ensure long-term sustainability. • Recommended Medical Contribution and Premium Adjustments for 2027: While every effort has been made to avoid shifting costs to employees, the projected increase in healthcare costs can no longer be absorbed solely through plan management strategies. Therefore, it is recommended that: o The County's monthly contribution increase from $1,416 to $1,575 per employee per month. o Employee medical premiums increase proportionately across all coverage tiers. • The County continues paying approximately the same percentage of total healthcare costs as it does today. f` • Proposed Dental Premium Adjustments: The dental plan continues to perform near expected levels and remains fully employee funded. A modest premium adjustment is recommended for 2027 to align premiums with projected costs and maintain the financial stability of the dental program. • Competitive Benefits Remain a Recruitment and Retention Advantage: Even with the proposed adjustments, Brazos County's health plan remains highly competitive when compared to benchmark employers. Deductibles, out-of-pocket maximums, copays, and employee premium contributions continue to compare favorably to peer organizations and regional market data. • Long-Term Sustainability Remains the Goal: The recommended adjustments are intended to preserve the quality and affordability of the County's health benefits program while ensuring the plan remains financially sustainable in future years. By proactively addressing rising healthcare costs now, Brazos County can continue offering employees a strong benefits package. Recommendation Based on current claims experience, projected healthcare costs, and market trends, Human Resources and USI recommend approval of the proposed 2027 medical and dental premium schedules, including an increase to the County's monthly medical contribution from $1 ,416 to $1,575 per employee per month. While the County has successfully maintained stable premiums and contribution levels for several years, increasing healthcare costs now necessitate adjustments to ensure the continued financial health and sustainability of the employee benefits program. In summary, Brazos County's employee health benefits program remains strong, competitive, and well-managed. The recommended changes will allow the County to continue providing valuable benefits to employees while responsibly planning for the future. Medical Coverage Data for 2026 Employee Medical Coverage Retiree Medical Coverage Employee Only 462 Retiree Only 195 Employee & Child(ren) 180 Retiree & Child(ren) 11 Employee & Spouse 64 Retiree & Spouse 44 Employee & Family 83 Retiree & Family 2 Waive Coverage 68 Waive Coverage 9 Total Total ' '. We' 'it e s •e J .r,. .-irttci'atf t 913 Wellness Rate ($75/mo discount) 128 Non-Wellness Rate 12.3%of total enrolled Total Enrolled (Employees+Retirees): 1,041 Historical Health Insurance Contributions 2019 2020 2021 2022 2023 2024 2025 2026 County Contribution $1,073 $1,274 $1,274 $1,326 $1,373 $1,416 $1,416 $1,416 Employee Only $66 $74 $74 $78 $63 $63 $63 $63 Employee+Spouse $487 $501 $501 $526 $511 $511 $511 $511 Employee+Children $326 $338 $338 $354 $339 $339 $339 $339 Employee+Family $676 $692 $692 $726 $711 $711 $711 $711 Includes$30 Includes$50 Includes$50 Includes$60 Includes$75 includes$75 Includes$75 Includes$75 Wellness Discount Wellness Discount Wellness Discount Wellness Discount Wellness Discount Wetness Discount Wetness Discount Wellness Discount $700 - ... •... .••..•...... ••• • ♦ •$711. $600 - E $500 r���-- S f-�����♦.......• • ♦ —•$511 z E v L a $400 - >+ $300- $200- $100 - • • • • • •$63 2019 2020 2021 2022 2023 2024 2025 2026 Year S Employee Only —49— Employee + Spouse —410- Employee + Children •• Employee + Family