County to hear sales pitches for insurance administration
By: Health Insurance
Submitted: 2009-10-28 12:37:06 | Word Count: 596
With negligible increases in premiums expected for 2010, Carroll County will stay with Blue Cross/Blue Shield for employee health insurance.
But the county, which has long contracted with Wellmark to administer the program, will hear sales pitches from other vendors interested in running it.
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The Board of Supervisors discussed 2010 health-insurance rates at its weekly meeting Monday.
The county has a self-funded program. Workers contribute but the county as a benefit pays the majority of monthly premiums, which are kept in a pool used to pay claims.
"Stop loss," insurance against claims that exceed $50,000, is also purchased from Wellmark in addition to the contract for administration.
The county offers two plans to its 118 full-time employees. Ninety-seven are enrolled in the option that has a $500 deductible and maximum out-of-pocket expense of $1,000 per year, while the remaining 21 are on a $1,000/$2,000 plan, which has a lower monthly premium. The county also offers assistance with prescription medications and preventive medical tests.
Although the county operates on a July-through-June fiscal year, health insurance contracts are renewed every calendar year.
Under the 2009 contract, the county pays Wellmark $15,000 per month to run the health insurance program, $180,000 for the calendar year.
At Monday's meeting, county auditor and board secretary Joan Schettler said she'd met with a representative from Wellmark last week and learned that rates for the $500/$1,000 plan are projected to rise a mere 0.36 percent in 2010 while rates for the $1,000/$2,000 plan are expected to be just 2.1 percent higher.
"I was pleasantly surprised," Schettler remarked.
The news brought smiles to the faces of the supervisors. Several related that rates for the various agencies they also serve will be jumping 14 to 30 percent.
"I think we're fortunate," said chairman Gene Meiners. "We've had a good history" of low claims.
Claims increased just 2.86 percent this year, and the county's rates actually fell in 2008 and 2009.
Schettler and supervisor Mark Beardmore said they'd fielded calls from vendors interested in bidding on employee health insurance coverage.
"I'm not opposed to them making a presentation," said supervisor Dan Nieland, "... but it's going to be pretty hard to get me to change after the way we were treated last year and this year. We've got a very acceptable premium. All the employees, I've never heard a complaint."
Schettler agreed, saying the county's workers are pleased with the current arrangement.
Meiners said he wasn't against listening to other offers but added, "If we've got our mind made up (to stay with Blue Cross/Blue Shield), why go through the waste of time?"
The board created a subcommittee of Schettler and supervisors Beardmore and Nieland to meet with bidders. The county will hear proposals only for program administration, meaning it intends to stay with Blue Cross/Blue Shield.
"We've got local vendors showing interest in the county's business. I think it's worth listening to the presentation," Beardmore commented.
Cautioned Nieland: "We've been treated very well, and we have a great program. I'd hate to jump ship."
