County staff told the Ashe County Board of Commissioners on Oct. 20 that the State Health Plan for teachers and public employees faces a multiyear shortfall and that a recently enacted provision may impose a surcharge on local governments participating in the plan.

"The state health insurance plan is looking at a $1,400,000,000 shortfall," said Adam, a county staff member, summarizing information presented at the meeting. Staff said the new mechanism — including a 2.4% surcharge referenced in House Bill 125 — was not clearly described as applying to local government employers when it moved through the legislature, and the county was caught off guard.

The county manager and human-resources staff reviewed options and said the immediate effect would be an estimated $340,000 unbudgeted impact for Ashe County in the current fiscal year if the surcharge is applied to county payroll. Commissioners voted to authorize staff to send letters to the State Treasurer and the county's legislative delegation seeking a waiver, a deferral to July 1, 2026, or other relief.

Adam told the board the county rejoined the State Health Plan in 2016 for scale and stability. He said the county continues to evaluate alternatives, including pooled insurance arrangements and the legal implications of contractual language in the State Health Plan agreement that staff said limits withdrawal. Commissioners asked staff to seek quotes and legal advice and to press state officials for clarity and flexibility so the county can budget for any required contribution.

Commissioners emphasized the timing problem: local budgets must be adopted by July 1 and sudden, after-the-fact surcharges create difficulties for county budgeting. The board directed staff to coordinate with the North Carolina Association of County Commissioners' government-relations team and to sign and send advocacy letters on behalf of Ashe County.