By: Health Insurance
Submitted: 2009-11-30 16:23:59 | Word Count: 688
The Greene County Commission's Budget & Finance Committee was told Wednesday that county employees' health care claims are running about 11 percent higher than Blue Cross would like to see.
Jim Jordan, the Bristol insurance agent who handles the county's Blue Cross health-care policy, showed the committee a worksheet that indicated claim payments averaged more than $317,000 per month from January to October of this year.
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From January to June, the county's "medical loss ratio" was 99.4 percent of the premiums the county government and its employees pay to Blue Cross for health insurance.
Jordan said 88 percent is Blue Cross' "target," or break-even point.
The county government's high claims history "shows that the increase (in premiums) that the county got from Blue Cross for the current budget year "was a fair increase, considering what claims they paid out," Jordan said.
Last spring, the county government (and Jordan) negotiated a 5.9 percent premium increase with Blue Cross.
In September, Pam Gaut, a Blue Cross representative, gave a presentation to the committee about wellness programs that the company offers at no cost. Some of the programs qualify participants for reductions at health clubs and for gift cards, though at this time they do not affect insurance premiums.
Jordan said Wednesday that Gaut would like to make a similar presentation to the county's department heads, so that they will be able to explain the program to employees.
Sheriff Steve Burns, who oversees the largest number of employees, said he would have to designate several people to provide the information to deputies, since shift work makes it impossible to get all sheriff's department and jail employees together at once.
Road Superintendent David Weems, who oversees the second-largest number of county employees, suggested that Gaut or someone from Blue Cross could do a better job of explaining benefits to Highway Department employees than he could.
Weems also said that, at this time, employees are much more concerned about the cost of their health insurance than with a wellness program, even though such a program could make them healthier.
If participation in a wellness program could reduce the amount that employees contribute toward the cost of their health care, Weems said, then they would see a benefit to wellness that they do not see now.
Weems also said that he personally cannot see any way other than wellness and prevention programs by which county government can reduce the amount it now pays for employee health insurance. Jordan agreed.
After discussion, County Mayor Alan Broyles said he would try to work out a time in December for Gaut to make a presentation to department heads, with more meetings, if needed, possible for departments in January.
SELF-INSURANCE FUND
Dan Jackson, the McInturff, Milligan & Brooks vice president who is also the county's insurance risk manager, reported on the self-insurance fund that covers county buildings, liability and workers compensation.
Jackson said his report was essentially the same as in October, with the fund about $200,000 better off on a cash basis than it was a year earlier.
He showed the committee a worksheet showing about $1.6 million on hand, as of the end of September. Last month, he reported as of Aug. 31.
Jackson noted that the county government has yet to receive the "in lieu of taxes" payment from the Tennessee Valley Authority for July, August and September.
The quarterly TVA payment goes directly into the self-insurance fund, along with a property tax levy. Once the TVA money is received, Jackson said, the fund will be that much better off.
Jackson also noted that the fund's immediate cash reserves are up about $30,000, due to having to carry over some serious claims.
