York County sticking with current employee healthcare for now
Market conditions and employee satisfaction lead to deferred search for new provider
York County has officially decided to postpone seeking a new medical insurance provider for the 2027 plan year, citing a series of reviews regarding employee compensation and benefits. The decision marks a shift from discussions held late last year, where officials initially considered opening the contract to a competitive bidding process.
According to the adopted Fiscal Year 2026 (FY26) budget, York County has allocated approximately $19.8 million to its Health & Dental Insurance Fund. As an internal service fund, this account manages the county’s self-insured program by balancing employee and employer revenues against claims and reserves. This total represents a $1.1 million increase over the previous year, a shift driven by an 8% premium rate hike shared between the county and its staff.
In a memorandum released earlier this year, County Administrator Mark L. Bellamy, Jr. informed the Board of Supervisors that the planned Request for Proposal (RFP) for the 2027 plan year has been deferred. “After thoroughly evaluating and discussing this plan with staff and our health and benefits consultants, we have decided to defer this bid process for now and reassess this option year to year,” he wrote the board.
Instead, the County will utilize its existing annual renewal options, reassessing the market on a year-to-year basis. The move to stick with the current carrier follows a comprehensive fiscal and compensation presentation given last year in December regarding the findings from a countywide compensation study. The consultant who conducted the review noted that the County’s direct salaries had begun to lag behind the market, but assured the Board that York County’s employee health insurance and leave policies remain competitive with neighboring local governments. The administration pointed to several critical factors for the deferral:
Market Stability: Volatile healthcare and economic conditions made a long-term bid process risky at this time.
Internal Sentiment: Overall employee feedback regarding the current medical carrier has been overwhelmingly positive, paired with consistent quality in customer service.
Operational Focus: The County is currently managing several “significant initiatives” that require full administrative attention.
The consultant also highlighted a shifting generational landscape during late last year’s session. He noted that while veteran employees prioritize the high-quality health insurance York County provides, younger “Millennial” workers are increasingly focused on direct take-home pay over robust benefit packages.
By deferring the bid process, York County leadership aims to wait for a more “optimal” economic window while maintaining the stability of a benefits package that is currently a primary draw for staff retention. The County will continue to conduct yearly assessments to ensure their medical plan remains both fiscally responsible and competitive.
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