County to discuss insurance
By Steve Herring
Published in News on April 3, 2016 1:45 AM
Wayne County commissioners Tuesday morning will once again discuss the county's self-insurance plan that could experience a 9.3 increase unless they can settle on an option being offered by the county's insurance broker.
Inflation and a nearly 31-percent jump in pharmacy use are being blamed for the possible increase that would require an additional $629,439 -- an increase commissioners say the county cannot afford because of added expenses to staff the new jail and operational costs for the proposed new agriculture and convention center.
It also could adversely impact the county's ongoing efforts to update and improve its position classification and pay plan.
The county currently pays the insurance premium for employees who in turn pay for any dependent coverage.
Commissioners held a work session on the insurance at their March 16 session, but tabled any action until this week.
One area commissioners discussed was a need to include a biometrics component this fall in order to get benchmark readings on employees' health.
That would allow the county to begin a wellness program to screen for treatable diseases beginning in July, 2017, and rewarding employees for meeting certain health goals, County Manager George Wood said in a memo to the board.
Tuesday's 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.
Commissioners will convene as the Board of Adjustment at 9:30 a.m. for a public hearing on a proposed solar facility at 413 Ruskin Road, Dudley.
They will recess the meeting to have lunch with the Fremont Town Board at the Capital Cafe, 102 E. Main St., Fremont.
Wood asked insurance broker Mark III 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.
Under one option the cost would increase by 5.3 percent ($359,204). A second option would lower the increase to 4.3 percent ($291,167).
The third option, the one recommended by Wood, got the cost increase to zero percent.
To get the increase to zero, the plan would increase:
* The stop-loss insurance cap from $100,000 to $125,000.
* Primary care physician from $30 to $35 in-network co-pay.
* Specialist physician from $60 to $70 in-network co-pay.
* Deductible individual from $1,500 to $1,750.
* Deductible family maximum from $3,000 to $3,500.
* Co-insurance individual maximum from $1,000 to $1,750.
* Co-insurance family maximum from $2,000 to $3,500.
Pharmacy changes would:
* Add a $150 deductible, capped at $300 for any of the dependent coverages.
* Leave generics at $10 to encourage their use.
* Increase preferred drugs from $45 to $60.
* Increase non-preferred drugs from $60 to $75.
* Keep specialty drugs at 25 percent of cost, with a maximum co-pay of $100.
* Change the county "opt-out" policy from a $500 payment to a $1,000 payment to any employee opting out of the county medical insurance plan.
"Let me address the $150 deductible on the pharmacy because you will notice that nobody else (nearby counties) yet is doing that," Wood said in the memo. "That is a growing trend though. I went to these about four years ago in Lincolnton (as Lincoln County manager). We did it for the same reason because one of the fast-growing components of health care is pharmaceuticals. We are the most over-medicated population in the world, I believe.
"But the growth continues and it is both -- it is inflation on pharmacy but it is also increased utilization of pharmacy. The increase in our utilization was over 30 percent. So you have the $150 deductible as a way to addressing some of that."
In other business Tuesday, the board is expected to approve a resolution asking the state Department of Transportation to install new "Welcome to Wayne County" signs. Commissioners will also be asked to approve the next phase of amending the county's position and pay plan.
The county wants the DOT to replace the existing "Welcome to Wayne County" signs at U.S. 70 at the Johnston County line, new U.S. 70 at the Lenoir County line, existing U.S. 70 at the Lenoir County line, Interstate 795 at the Wilson County line and the U.S. 117 South (future Interstate 795) at the Duplin County line.
The project will cost $50,000 and will be paid for by the county.
Public comments will start at 9:15 a.m. Speakers must sign up 10 minutes prior to the start of the 9 a.m. session.
Speakers will have four minutes to comment on agenda items and two minutes on non-agenda items.