Former Auxiant official testifies in VanWeelden trial [The Oskaloosa Herald, Iowa] - Insurance News | InsuranceNewsNet

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February 1, 2012 Newswires
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Former Auxiant official testifies in VanWeelden trial [The Oskaloosa Herald, Iowa]

Duane Nollen, The Oskaloosa Herald, Iowa
By Duane Nollen, The Oskaloosa Herald, Iowa
McClatchy-Tribune Information Services

Feb. 01--OSKALOOSA -- A former Auxiant official who handled health insurance claims for the Mahaska County testified Wednesday morning in the trial of County Supervisor Henry "Willie" VanWeelden.

VanWeelden faces three charges: first-degree theft, felonious conduct in office and tampering with documents. The charges are in regards to VanWeelden placing his wife, Bonnie, back on county health insurance coverage after he was reelected in November 2008. She was covered initially after VanWeelden was elected in 2001. She was removed in 2004 and then was reinstated in early 2009 after VanWeelden was reelected in 2008.

Tom O'Brien was an Auxiant official during the time in question in the VanWeelden trial.

O'Brien said Auxiant works with entities that self-fund their health insurance policies as the third-party administrator. If there is a question about insurance coverage or there are any need for changes to a policy, Auxiant would be consulted.

"You can change the plan -- it wasn't set in stone," O'Brien said.

Under questioning by prosecutor Becky Goettsch and defense attorney Matt Moore, O'Brien explained how the process of adding dependents to health insurance worked.

One of the key points of the morning was whether the terms "newly elected" and "reelected" meant the same thing.

Newly elected county officials can add dependents immediately to health insurance coverage without the need for underwriting. If they don't mean the same thing, an underwriting process would have to be done.

Goettsch asked O'Brien if the two terms meant the same thing.

"It's not spelled out in the language of the plan," he said. "It was a gray area."

Goettsch submitted three 2008 letters from Auxiant to VanWeelden stating that his wife, Bonnie, had been denied coverage due to health reasons.

Goettsch said VanWeelden had submitted a Jan. 16, 2009, letter -- on Mahaska County letterhead -- to Auxiant to put Bonnie VanWeelden on the insurance plan.

O'Brien said he assumed the supervisors had discussed the matter and voted to approve it, so Auxiant added VanWeelden's wife.

Under cross-examination by Moore, O'Brien testified that VanWeelden never acted covertly in the matter or told him to keep the insurance addition under wraps. He said that letters are often acceptable for action. He said a stop-loss carrier, like AIG, would require a formal document.

Moore asked O'Brien if Auxiant spent money for family health insurance plans. O'Brien said Auxiant had.

Goettsch said that former Supervisor Lawrence Rouw and current Supervisor Greg Gordy testified that they had no knowledge of the letter to reinstate Bonnie VanWeelden.

Moore asked O'Brien if an addendum to add Bonnie VanWeelden to insurance coverage, to make the plan match with the Jan. 16, 2009, letter had been passed.

O'Brien said the matter had been tabled at a supervisors meeting.

O'Brien had left Auxiant on April 17, 2009, and another Auxiant official dealt with Mahaska County insurance matters. In July 2009, another company took over insurance administration.

Copyright 2012 Oskaloosa.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

___

(c)2012 The Oskaloosa Herald (Oskaloosa, Iowa)

Visit The Oskaloosa Herald (Oskaloosa, Iowa) at www.oskaloosa.com

Distributed by MCT Information Services

Wordcount:  518

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