Wood County commissioners are wrestling with rising medical costs as they prepare for the 2025 county budget.

Commissioners spent more than an hour with consultants from Holmes Murphy last Thursday, going over the various impacts from a projected 21% increase in health care costs.

The county is self-funded for employee health insurance, and so far in 2024 the projected shortfall is around $700,000.

Auditor Terri Sellars is projecting the county will spend more than $4 million by the time the budget year ends Sept. 30.

The most recent payment for health and dental services covering a two-week period was for more than $230,000.

The county fund balance policy calls for six months of operating expenses to be held in reserve.

Sellars projects the county will have a $7.6 million balance in unrestricted funds to end the year, which would be less than a half-year of operating funds.

The county pulls from those reserves when health costs go over the budgeted amount.

The county hasn’t budgeted the full amount since 2020.

County Judge Kevin White said the county should budget the full estimated cost.

Pulling from reserves will eventually bankrupt the county, he said.

The county’s costs rose 7% for medical claims and 10% for prescriptions so far this year.

The figures are through March, and Holmes Murphy plans to have April and May figures and perhaps June’s before the next budget workshop July 25, to give commissioners a better idea what steps they might take.

Options include fewer benefits and more employee contributions.

White noted that if employee contributions go up 10% and employees receive a 3% pay raise, it will be about a “wash” for those at the lower tiers of the county pay scale.

As with all taxing entities, the county is awaiting final values from the Wood County Appraisal District, which are due July 25, to determine projected tax revenues.