County to look at health insurance option

County commissioners heard a case for partially self-funding county employees’ health insurance Monday.

Their plan is to see what that would look like with other insurance brokers in the coming weeks.

Jay County Commissioners heard an assessment from representatives of Understand, Service and Innovate (USI) Insurance on Monday about the potential savings partially self-funding insurance would generate based on numbers from past years.

USI Insurance has been in contact with commissioners president Chad Aker and Jay County Auditor’s Office since May.

“We had conversation surrounding whether or not it was going to be more financially beneficial for the county to be self-insured in your health plan moving forward versus being fully insured, which is currently how the county funds their health insurance,” explained Tom Schweisthal of USI Insurance.

USI Insurance gathered data from the county’s current health insurance provider, Physicians Health Plan, between 2020 and now. 

Alex Dickman of USI Insurance said in the last five years, the county has overspent about $780,000 for insurance. Dickman said on an average basis, clients who switch to self-funding saving on average about $180,000 annually.

In 2023, Dickman said, the county paid around $1.35 million in medical fees, and insurance claims came in at about $700,000. That’s about a 56% loss ratio, he noted.

“When we see that, that’s a great opportunity to look at self-funding, just because the numbers are showing that to us,” said Dickman.

 Confirming a question from commissioner Brian McGalliard, Dickman noted the county could opt into a partially self-funded program through Physicians Health Plan.

Also, responding to McGalliard, Dickman and Schweisthal confirmed the program would have a loss cap of $1.5 million to the county, the height of which Schweisthal said would be a worst-case scenario.

USI Insurance offered to become a broker to the county for a partially self-funded program through Physicians Health Plan. The agreement would begin approximately 10 days after commissioners approved it. Currently, the county’s broker is OneDigital.

McGalliard pointed out the City of Portland’s insurance is partially self-funded and has been for a number of years. Its broker is Steve Stockton of Bixler Insurance, which also provides liability insurance to the county.

Commissioner Rex Journay added that Adams County has self-funded its employees’ insurance for eight years. Still, Journay said he would like to see what Physicians Health Plan and other brokers have to offer in terms of partially self-funded plans.

McGalliard asked county auditor Emily Franks if switching to the partially self-funded program would reduce expenses for employees.

“I don’t know that we want to change everything … right in the middle of the year,” said Franks, pointing to new Health Savings Accounts opened for employees.

Dickman said nothing about the plan design or Health Savings Accounts would change, noting the agreement would allow the company to become the county’s broker for the remaining four months and handle the insurance renewal.

“I guess I would just ask for some time,” responded Franks. “We’ve been with this broker for 15 years, that’s not nothing. We’ve been with Steve since the ’90s, he does the same thing for the City of Portland.”

Journay and commissioner president Chad Aker both questioned why Physicians Health Plan hasn’t offered such an option in the past.

“Kind of what our data shows is PHP has been making a pretty penny off the county for the last four years that we’ve seen, they have no financial incentive to change that,” said Schweisthal.

Dickman said it will take time to make a switch and get data together for insurance renewal at the end of the year. Aker suggested commissioners gather information from other brokers and make a decision at their Sept. 23 meeting.

Commissioners tabled discussion on the topic.

In other business, commissioners Journay, McGalliard and Aker:

•Gave permission to: Sheriff Ray Newton to purchase a 2024 Dodge Durango for $43,183 from Thomas Chrysler Dodge Jeep Ram of Highland to replace a totaled vehicle involved in a police chase in July; and highway superintendent Bob Howell to purchase a 2024 Chevy Silverado for $52,287 from Ed Martin Chevrolet of Anderson to replace a 2008 Ford F-150.

•OK’d installing 300 feet of asphalt at the entrance to Helena Chemical Company just north of Pennville, along county road 500 North at its intersection with Indiana 1. Howell noted with the amount of truck traffic turning in and out of the business along its county road entrance, the chip and seal resurfacing may not last. The cost, $60,341, will come out of the highway department’s paving budget.

•Spoke with Bill Walters of East Central Indiana Regional Planning District, who shared updates about ongoing projects with the county, and community coordinator Nate Kimball, who suggested commissioners hold off on signing a contract for radon testing for the owner-occupied rehabilitation program at least until the next meeting. County officials are waiting for a contract with an engineering firm for the project. There’s also discussion ongoing with Indiana Office of Community and Rural Affairs regarding a $5,000 cap on how much of the $1 million grant — it made the program possible — may be used for the required radon testing.

•Approved $3,482,708.49 in claims as well as a $1,730.50 claim from Dell for a new computer setup for the quality correctional care nurse at Jay County Jail.

•Learned about concerns from Jay County resident Brad Barnett. Howell explained Barnett would like for commissioners to reduce the speed limit or install children at play signs along county road 300 West near Indiana 67.

•Heard from Karl Kaiser of rural Bryant, who asked commissioners to look into converting county road 850 North from stone to a hard surface. Aker noted the road committee determines which stone roads are converted each year — in years past, the county has converted an average of 5 to 7 miles annually — and told Kaiser how to get in contact with him so he could attend the next committee meeting.

•Heard Jay Emergency Medical Services’ financial breakdown for July from director Gary Barnett. In July, the department had $127,629.16 in expenses and $95,160.24 in income. Also, Barnett noted his department will be looking to hire two full-time paramedics in the near future.

•Learned several highway department signs have been stolen this year. Howell noted the signs are labeled as property of Jay County and have an inventory number marked on them.