County eyes health insurance plans

Employee health insurance was the primary topic of Monday’s meeting of the Harvey County Board of Commissioners.

Rob Mahoney, the county’s health insurance consultant with Haake Benefits Consulting Group in Overland Park, presented the commissioners with an in-depth look at what plans were and weren’t available and what the cost increases are going to look like for 2010.

Initially, the county’s quote from Preferred Health Systems for renewal came in at about a 12-percent increase compared to 2009.

While that would have cost the county about $110,000 more a year, Mahoney said, in the current climate, that was not unexpected.

“Twelve percent is not bad,” he told the commissioners. “It’s sad that we have to say that, but it’s not that bad.”

However, the goal was to come in at less than an 8 percent increase while not inflicting a major increase in premium on county employees.

Mahoney sought alternative plans from Preferred Health and solicited proposals from eight other insurance companies.

In the end, the proposal was to stay with Preferred Health but on a different plan.

Currently the county has three plans — a base plan without prescription coverage, a base plan with prescription coverage and a high-deductible plan with a health savings account.

Employees will see some increase in deductibles and maximum out-of-pocket expenses.

For example, those moving from the base plan with drug coverage to the new comparable plan will have a deductible of $100 more and a $500 increase in maximum out-of-pocket expenses.

Some employees will pay the same premium, some will pay less and some will pay more across the new plans.

That change is a result of the county equalizing the percent of the premium employees pay on all plans, whether they are a single or a family plan. Before, singles paid a smaller percentage.

The total increase in premium will be 7.6 percent, costing the county about $4,500 more monthly.

One change from the previous structure is the new lowest-premium plan has prescription drug coverage, unlike the current lowest plan.

Mahoney said that while including prescription drugs can raise premiums, he said it often helps offset larger later claims, because those without drug coverage may avoid or stop taking maintenance drugs.

Mahoney proposed a couple of other changes to the county health insurance system, including eliminating the “in lieu of payments,” where the county pays employees per month if they opt out of the county insurance plan.

In lieu of payments cost the county about $150,000 a year.

He also suggested a spousal carve-out or surcharge system, where spouses of county employees who are eligible for coverage under their own employees either be removed from county insurance or required to pay a surcharge.

In light of the lack of cost-of-living increases for county employees in the coming year, commissioners opted to wait at least a year before beginning to institute those changes county-wide, but the two changes will apply to all employees hired after Jan. 1.

John Waltner, special projects director for the county, also submitted some proposed adjustments to the county wellness program for 2010.

The changes include requiring spouses of employees who are insured on the county health plan to show verification of a physical exam and blood work, a step that currently is a requirement for all county employees.

The county also is planning a “Think 30” incentive program, encouraging employees to get 30 minutes of exercise a day for 30 days; making healthy snacks available in the vending machines; scheduling periodic healthy brown-bag lunches; and locating an affordable vendor for an online Health Risk Assessment, which can be used to develop future wellness activities.

In other business, the commission:

• Approved the statement of final costs, assessment roll and notices of public hearing regarding the Schaben Court Road.

The cost of the project is being assessed to the eight lots in the industrial park just off Interstate 135 near Kansas Highway 196.

Schaben Industries is the only business in the industrial park.

• Approved Marge Roberson as the voting delegate and Chip Westfall as the alternate for the Kansas County Association Multiline Pool annual meeting on Nov. 16.

• Conducted an executive session for 45 minutes to discuss personnel issues. No action was taken following the session.

By carl cusick

Original post : on Thekansan.com