Board to discuss $250,000 increase in employee insurance

[March 15, 2013]  Wednesday was a night of important discussion for the Logan County Board Insurance Committee. The primary topic was the renewal of employee health insurance with Health Alliance, or the potential change to a different provider. A dozen guests were in attendance as the committee deliberated.

The committee had a special meeting at the courthouse Feb. 26 to explain the insurance situation to county employees. A 35 percent potential increase in premiums would cost the county an extra $250,000 a year. County board members are looking for other options to provide insurance.

Employees were given a second survey to complete in February. Pam Meagher told the committee members that 73 people completed the survey and that most of the results would indicate the employees do not want to see an increase in the amount they pay out-of-pocket for coverage.

Meagher also said that most of the employee responses favored switching to Blue Cross Blue Shield instead of continuing to be covered by Health Alliance.

On another note, the idea of a stipend provided for employees to purchase their own insurance, while supported by several county workers, would not be cost-effective for the county. Such a policy may come up again next year with the advent of the Affordable Care Act.

Meagher and insurance chairman Jan Schumacher put together a list of suggested plans for the county board to look over. The list contained a number of choices from both Health Alliance and Blue Cross Blue Shield. Meagher said she could understand why the employees may want Blue Cross, as their out-of-pocket costs would be lower.

Andy Anderson said he wanted to see the county continue to offer three levels of coverage to the employees.

Meagher agreed. "Some people are more comfortable having doctor visit copay and can't handle the thought of a large deductible, and other people would rather not pay anything out-of-pocket," she said.

Meagher suggested that in order to help employees with a high deductible, the county could put money into a health savings plan for the employees who choose such coverage.

The decision at hand for the committee came down to which company they think would be a better choice for the employees: Blue Cross or Health Alliance.

Dave Hepler said there are really two decisions to be made: which company to go with in providing coverage, and how much the county is willing to spend to aid the employees.

Nancy Schaub and Jodi Dacer said that both companies offer extensive medical management to help those employees who would require expensive treatments. In those cases, money would be gathered by the companies from outside sources to help pay for the high costs.

As the discussion began to wind down, the committee decided to bring the discussion to the whole county board this month. The specifics of the motion were to discuss the possibility of switching to Blue Cross Blue Shield with three levels of coverage and a $50 savings per commitment for employees with a high deductible. Furthermore, the county share in this plan would be $475 (this would be higher than the current plans, in which the county pays $463).

Committee members present were Jan Schumacher, chairman; Chuck Ruben; Andy Anderson; Bill Martin; and David Hepler. Insurance administrator Pam Meagher, Nancy Schaub of R.W. Garret Agency and Jodi Dacer of Health Alliance were also present.

The county board could vote on the matter when it meets Tuesday at 7 p.m. at the Logan County Courthouse.

[By DEREK HURLEY]