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19 <br /> Slide #13 <br /> FY 2026-27 Expenditure Budget <br /> Personnel Related Cost Assumptions <br /> Wage Adjustment-$930,000 for each 1% <br /> Merit Performance Awards—$455,000 <br /> Increase of Employer Health Insurance Contribution - 13% or$1.7 million <br /> Increase of Employer Retirement Contribution Rate-6% per LGERS rate stabilization program-$1 million <br /> Increase to Retiree Health -9%at$400,000 <br /> Increase to Sheriff Separation Allowance-$250,000 <br /> 13 OP,AN H Cp OLINA GE COUNTY <br /> Vice-Chair Fowler asked what the Sheriff's separation allowance is. <br /> Travis Myren said it is based on years of service and salary up to age 62. He said it is a <br /> state requirement. <br /> Vice-Chair Fowler asked if it is only for the Sheriff. <br /> Travis Myren said it is for all Sheriff's Office employees. <br /> Slide #14 <br /> FY 2026-27 Expenditure Budget <br /> Health Insurance Cost Drivers <br /> Consecutive years of 5%+cost increases with no change in benefits Rate Increases for Health Insurance <br /> or costs to employees—premiums, deductibles, co-pays $16,000.00 <br /> $1s,000-oo <br /> Cost drivers for medical benefits o$14.000.00 s13,4e5 <br /> Cancer treatment cost increasing 34%-50%based on new w 13,000.00 <br /> treatments being put into use and aging population a$12a00.00 <br /> Musculoskeletal surgery cost increasing 11% $1125851,933 <br /> - Psychiatry costs increasing 12%-specialist utilization above $30.000-00 $1os71 <br /> industry standard _ $s679$s,s7s$s,s7s$1o,1sz <br /> $9,000.00 <br /> $9,136 <br /> $8,000.00 <br /> x <br /> Cost drivers for pharmacy benefits $7,000.00 <br /> - Pharmacy costs up 41% $e,000_oo <br /> 2019 2020 2021 2022 2023 2024 2025 2026 2027 <br /> Use of GLP-1's for weight loss has increased by 5 times—coverage Fiscal Year <br /> adds$1.1 million to the cost of the health plan <br /> -Employee Only Traditional Plan <br /> Other employers that cover GLP-1's have also required a"catch- <br /> up"adjustment due to high demand <br /> ORANGE <br /> 14 Nx CA COUNTY <br />