Memorandum
Date: July 28, 2026
To: The Honorable Brad Rasmussen, Chair, Lake County Board of Supervisors
From: Pam Samac, HR Director
Tom Sher, Alliant SVP, Managing Consultant
Chloe Smith , Alliant VP, Benefit Consultant
Subject: 11:00 A.M. - Consideration of Presentation by Alliant on the County of Lake 2027 Medical Renewal
Executive Summary:
Human Resources and Alliant Insurance Services present the County of Lake 2027 Medical Renewal and provide an overview of the upcoming health plan changes and renewal information.
Presentation highlights include:
• Overview of 2027 Medical Renewal
• Health Insurance Market and PRISM Health Trend Forecast
• County of Lake Cost Drivers
2027 PRISM Renewal
• Medical +18.7%
• Dental +11.7
• Vision - No Change
• EAP + 6.2%
• Life Insurance - No Change
The County of Lake contracts with the PRISM Health Insurance Program to provide health insurance coverage for its employees and eligible dependents. As part of its standard rating methodology, PRISM performs a utilization review every three years. Agencies whose claims experience exceeds the overall pool average may receive an alignment adjustment to ensure premiums more accurately reflect their utilization of the pool. For the 2027 renewal, Lake County received an additional 7.5% rate adjustment based on its healthcare utilization over the previous three years. During that period, the County of Lake’s 3-year loss ratio 100.8% resulting in a net loss to the PRISM Health pool for the County's coverage. This higher-than-average claims experience was the primary factor in the additional rate adjustment.
Another factor contributing to the County's healthcare costs is its relatively low level of dependent enrollment. Employer-sponsored health plans generally benefit from a balanced risk pool that includes employees, spouses, and children across a broad range of ages and health conditions. Because Lake County has fewer enrolled dependents than many comparable employer groups, its health plan has a less balanced risk profile, contributing to higher overall claims costs and affecting the County's premium adjustment.
If not budgeted, fill in the blanks below only:
Estimated Cost: ________ Amount Budgeted: ________ Additional Requested: ________ Future Annual Cost: ________
Purchasing Considerations (check all that apply): ☒ Not applicable
☐ Fully Article X. <https://library.municode.com/ca/lake_county/codes/code_of_ordinances?nodeId=COOR_CH2AD_ARTXPU_S2-38EXCOBI>- and/or Consultant Selection Policy <http://lcnet.co.lake.ca.us/Assets/Intranet/Policy/Policies+$!26+Procedures+Manual/Ch4_2021v2.pdf>-Compliant (describe process undertaken in “Executive Summary”)
☐ Section 2-38 <https://library.municode.com/ca/lake_county/codes/code_of_ordinances?nodeId=COOR_CH2AD_ARTXPU_S2-38EXCOBI> Exemption from Competitive Bidding (rationale in “Executive Summary,” attach documentation, as needed)
☐ For Technology Purchases: Vetted and Supported by the Technology Governance Committee <http://lcnet.co.lake.ca.us/Assets/Intranet/Intranet+Forms/Information+Technology/AdvPlan.pdf> (“Yes,” if checked)
☐ Other (Please describe in Executive Summary)
Consistency with Vision 2028 <http://www.lakecountyca.gov/Government/Directory/Administration/Visioning/Vision2028.htm> (check all that apply): ☐ Not applicable
☐ Well-being of Residents ☐ Public Safety ☐ Disaster Prevention, Preparedness, Recovery
☐ Economic Development ☐ Infrastructure ☒ County Workforce
☐ Community Collaboration ☐ Business Process Efficiency ☐ Clear Lake
Recommended Action: Presentation only.