Consultant recommends RFP process to cut county health insurance costs by $944K

Scotts Bluff County officials are considering significant changes to their health insurance plan following a detailed presentation at the recent county commissioners meeting on March 31, 2025. The discussion centered around the county's current health plan expenditures, which total approximately $3.7 million annually, with about $2.9 million allocated for claims.

A consultant from NextGen Benefit Solutions highlighted the potential for substantial savings by restructuring the county's health insurance contracts. The consultant suggested that the county could save nearly $944,000 by implementing a Request for Proposal (RFP) process to explore better options for health care services. This could lead to reduced costs for both the county and its employees, with estimates indicating that employees could see a return of about $1,000 each in lower premiums.

The consultant emphasized the importance of price transparency in health care, noting that the county is currently paying significantly more than Medicare rates for various medical procedures. For instance, the reimbursement for a gallbladder removal under the county's current plan is approximately $23,000, while a preferred provider could offer the same service for around $6,800.

Commissioners expressed interest in the proposal, recognizing the need to evaluate their current health plan and potentially engage an independent consultant to provide unbiased advice. The discussion also touched on the broader implications of health care costs on the county's budget and taxpayer expenses.

As the county moves forward, the formation of an insurance committee to further explore these options was suggested, indicating a proactive approach to managing health care costs and ensuring that both employees and taxpayers benefit from any changes made. The meeting underscored the critical need for transparency and efficiency in health care spending, which could lead to improved financial outcomes for the county and its residents.