Insurance could jump 25 percent (11/16/04)

They’ve dealt with health insurance enough to know that premiums only head one direction … up.

But Jay County Commissioners admitted Monday afternoon they were surprised with a renewal quote on coverage for county employees that jumped almost 25 percent.

The commissioners, who met with two insurance agents and a representative from their health insurance underwriter, were told that keeping the same coverage in 2005 would cost 24.2 percent more than this year.

Agent-of-record Edward Culpepper Cooper and local agent Steve Stockton, along with Kim Fitch, a senior account executive with UnitedHealthcare, discussed plans for next year with Commissioners Gary Theurer, Mike Leonhard and Milo Miller Jr.

The three commissioners asked Cooper to explore several options — including increases in deductibles and out-of-pocket costs — and return next week for more discussions.

Two alternatives being considered would carry projected increased premiums of 20.5 percent and 16.1 percent.

The plan increasing 20.5 percent would triple the emergency room co-pay to $150 and increase out-of-pocket limits to $3,000 for an individual and $6,000 per family (up from $2,000 and $4,000, respectively).

In 2005, the county will pay $446 per month towards health insurance coverage for each employee participating in the plan. That amount, up from $426 this year, is about a 5 percent increase.

Earlier this month, the commissioners said they wanted to change the effective date of the health insurance coverage to Jan. 1 to help avoid confusion with deductibles for county employees. The current coverage has a Feb. 1 effective date, while deductibles are based on a calendar year.

The three commissioners said Monday it was doubtful that there would be enough time to switch insurance underwriters and still switch to a Jan. 1 effective date.

At a Nov. 1 meeting with Fitch, the commissioners were told the county’s claims experience has been improved this year, with total claims less than the amount paid in premiums. But recent years of big claims were taken into account in figuring premiums for 2005.

In other business Monday afternoon, the commissioners chose the highest of four bids for a new 2005 tandem-axle dump truck for the county highway department. That bid of $72,361.44 from Selking International of Muncie, was the only one that included a Cummins diesel engine called for in the bid specifications.

Bids also were received from: General Truck Sales (Volvo engine), $69,025.60; Wabash Ford Sterling (Mercedes-Benz engine) $63,920; and Kinstle-Sterling (Mercedes-Benz engine) $65,146.

The commissioners said the specifications will be changed next year to remove a specific engine type. The majority of the highway department’s truck fleet have Cummins engines, making it more convenient for the department’s mechanics to make repairs and stock parts.

Ken Wellman, superintendent of the county highway department, recommended the contract be awarded to Selking and that the specifications be changed for 2005.

Also Monday afternoon, Jonna Reece, the county’s contract human resource consultant, gave copies of updated job descriptions and the county’s personnel policy to the commissioners.

All department heads and appointed first deputies are listed as exempt in the job descriptions, meaning they are not normally eligible for overtime. The lone exception in current practice, an exception the commissioners decided to leave unchanged, is the director of Jay Emergency Medical Service.

JEMS director Teresa Foster-Geesaman works three eight-hour shifts per week as director but also works one 24-hour duty shift as an advanced EMT. She is paid 16 hours of overtime per two-week pay period.

All county employees will receive a copy of the personnel policy, which outlines rules and procedures. The employees will be asked to sign a form stating they have reviewed and understand the rules.

Reece works for Associated Payroll Plus, a Muncie-based payroll and human resource consulting firm.[[In-content Ad]]