By: Health Insurance
Submitted: 2009-12-14 13:03:09 | Word Count: 382
After three weeks of reviewing and comparing bids on health insurance for up to 180 Phelps County employees, the County Commission approved awarding a renewal bid to the county’s present insurance carrier.
Commissioner Larry Stratman, District 1, explained the rationale for selecting Anthem Blue Cross Blue Shield instead of the other three health plans that were submitted.
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“There are higher out-of-pocket expenses on all these plans, and (aside from Anthem) none of these rates are set in stone,” Stratman said. “These rates could change when the other companies look at our claim rates.”
As Anthem is the present health-care provider for county employees, the company is aware of the county’s high claim rate, which reflected a 101-percent loss ratio during the last 12 months — more specifically, the medical claims paid by Anthem exceeded all the premiums paid by the county by an additional 1 percent.
In evaluating the bids that were submitted, Stratman said last week he discovered a less expensive policy through Blue Cross Blue Shield, which the company did not submit. The Blue Preferred Point of Service Plan, a group plan recently introduced in Phelps County, offers a plan for a cost of $396 a month per employee, which would save the county approximately $50,000 a year, compared to the rates it presently pays.
Phelps County pays 90 percent of the total monthly premium, and the employees pay 10 percent.
According to County Clerk Carol Bennett, who previously checked with the State Auditor’s Office, the county has the right to negotiate a more equitable agreement with a company after it’s awarded a county contract.
Presiding Commissioner Randy Verkamp agreed with Stratman.
“The maximum out-of-pocket expenses is the deal breaker on these bids,” Verkamp said, while stressing the renewal award would be subject to acceptable policy modifications.
Other bids submitted but not awarded included health-care plans from United Healthcare, Principal Financial Group, Harrington Health and Mercy Health Plans.
