County looks at health costs
By Steve Herring
Published in News on March 14, 2016 1:46 PM
Out-of-pocket cost would increase for Wayne County employees under a proposed plan that would keep their insurance premiums from rising.
Wayne County commissioners will be asked Wednesday to approve the proposal to offset what otherwise would be an overall 9.3 percent increase in the cost of the county's self-insurance plan.
The commissioners' meeting will get under way with an 8 a.m. agenda briefing followed by the formal session at 9 a.m. Both will be held in the commissioners' meeting room on the fourth floor of the county courthouse annex.
The board normally meets on the first and third Tuesdays of the month. This week's meeting was moved to Wednesday because of the Tuesday primary election.
In a memo to commissioners, County Manager George Wood said the 9.3 percent increase is being fueled by a 30.8 percent in pharmacy use and price increases.
A 9.3 percent increase in the $6,755,656 budgeted for medical insurance would require an additional $629,4390, Wood said.
Employees who pay for dependent coverage would pay for some of the increase, but the "overwhelming" amount would be shouldered by the county, Wood said.
"While these changes are not welcomed, we must remember that we only have a limited amount of money each year for employee raises and fringe benefits," Wood said in the memo. "If we do not limit the growth in medical insurance costs, we will not be able to afford merit raises. In addition, we face some new expenses in FY 2017.
"We have to pay about $450,000 for the 28 detention officers for the new jail. We have made a commitment to better fund the school system. We will have to plan on debt service payments for the Maxwell Regional Agricultural and Convention Center and the proposed 911 Center."
Wood said that the county asked Mark III, its insurance broker, to come up with options to reduce the 9.3 percent increase to zero in order to keep the employees' dependent coverage premiums the same.
Changes under the plan would be:
* Specialist physician from $60 to $70 in-network co-pay.
* Deductible for an individual, from $1,500 to $1,750.
* Deductible for a family, maximum from $3,000 to $3,500.
* Co-insurance for individual, maximum from $1,000 to $1,750.
* Co-insurance for a family, maximum from $2,000 to $3,500.
Pharmacy changes would be:
* Adding a $150 deductible.
* Leaving generics at $10 to encourage their use.
* Increasing preferred drugs from $45 to $60.
* Increasing non-preferred drugs from $60 to $75.
* Keeping specialty drugs at 25 percent of cost, with a maximum co-pay of $100.
In other business Wednesday, commissioners will consider motions to proclaim:
* March 24 as We Dig It Ag Day in Wayne County.
* March 30 as Welcome Home Vietnam Veterans Day in Wayne County.
* April as Donate Life Month in Wayne County to promote organ donations.
Public comments will start at 9:15 a.m. Speakers must sign in and note whether they will be speaking on agenda items or non-agenda topic.
There is a four-minute time limit for agenda topics and two minutes for non-agenda items.
Consent agenda items include: Applications for Property Tax Exclusion and for Present Use Value; resolution adopting the fifth amendment to the county's position classification and pay plan; purchasing contract for two ambulances from Select Custom Apparatus; appoint Brandon Gray to fill a vacancy on the Eastern Wayne Sanitary District board; proclaim April 5 as Wayne County Recognition Day for National Service; and budget amendments.
The meeting will be recessed so that commissioners can travel to Seven Springs to have lunch with the town board at the Seven Springs Restaurant.
It is the latest in the board's series of lunched with local municipal officials.