By: Health Insurance
Submitted: 2010-02-02 22:04:12 | Word Count: 719
The Upshur County Commission did not make a decision Thursday on moving to a private insurance company and has decided to wait until February.
The move to a private insurance company would reduce the county’s Other Post-Employment Benefits liability from $617,000 under PEIA to $166,000 under Coventry, the private option being considered, according to county administrator William Parker.
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Non-OPEB savings are estimated at $55,272, for what could amount to $500,000 in total savings per year for the county.
The commission also feels that what is happening on the state level will not affect the counties.
Commission President Donnie Tenney said, “Legislators have said your county liabilities are your liabilities. Their number one priority is the state liability. They have already made it clear they are not going to do anything to help the counties release their liability, because their liability is so great.”
County Administrator William Parker added that with lawsuits concerning school boards, the boards don’t have the authority to set insurance for employees. The state makes that decision for them.
“That’s why they may pick up the county school boards’ liability,” he said. “I don’t see the legislature taking action now to fix a county’s OPEB.
“Right now, under PEIA’s plan, in the next four years, they’ve estimated a $30 million increase on paper. Last year, PEIA premiums went up about 16 percent. You do the math, over the next four years, $30 million, about 12 percent.”
Right now the county is paying or accruing $1,383,180 per year, according to Parker.
That includes $617,000 it is supposed to be setting aside for OPEB liability.
“We’re not spending $617,000 — we can’t,” Parker said. “But to fully fund it, that’s what you need to be setting aside.”
Shenandoah Valley Group is working as a liaison between the county and Coventry. Dave Barton of SVG said that “Coventry has it calculated that you guys would come out March 1.”
Parker said, “The reason we picked the March 1 date was the commission wanted to make sure we had that (information) for the budget process.”
Barton said he would talk with the Coventry to see if the rate would change by moving the switch from March 1 to April 1. There has to be 31 days notice given to PEIA before leaving.
Commissioner Creed Pletcher said he was concerned about not going with a local company.
Barton said, “In West Virginia there’s really only two options that work well: Mountain State Blue Cross Blue Shield and Coventry (Carelink).”
Lewis County uses an Ohio group and is at the bottom of their coverage area. They are not allowed to go to Charleston medical providers, they have to go to Morgantown.
Parker said Coventry was selected because they don’t require individual health questionnaires from employees.
“That’s the reason we did not pick Mountain State Blue Cross Blue Shield,” Parker said.
County Clerk Debbie Thacker Wilfong said there are questions from people in the community about why the commission is not looking locally.
Parker said the fees for the actuarial study, etc. are below the bidding threshold amount, so the commission did not choose to advertise for bids.
Commissioner Eugene Suder said, “We’re going to have to go to one place, or you won’t have insurance. We cannot pay over $1 million a year.”
Tenney said that the commission would have to pay for another actuarial study if they went with another broker besides Shenandoah Valley Group.
Parker held up the actuarial study and said, “Last week, we didn’t have this piece of the puzzle, and it wasn’t prudent to make that decision without this piece of the puzzle.”
Suder made a motion to continue until after county commissioners meeting in Charleston next week.
Pletcher seconded and suggested making the decision after the county association meeting in two weeks.
Barton will be at the commissioners meeting.
Tenney said, “If the premiums go up, they go up. They are still going to be less than PEIA.”
