Adams County’s health insurance gamble pays off

July 22--NATCHEZ -- Adams County's leaders recently learned going it alone sometimes pays off.

By choosing to be self-insured for employee health benefits in 2016-17, Adams County officials were able to save $320,000 off the $2 million budgeted amount.In March, before the fiscal year for insurance closed in April, the county was projecting to save approximately $250,000, but the final savings based on employee and dependent claims came in approximately $70,000 less than projected.

The county was in its first year in recent history of self-insuring health care costs for county employees. Supervisors voted in March to continue self-funding insurance for employees in 2017-18.

Under a self-funded insurance system, the county pays claims for each employee up to a deductible of $50,000. Re-insurance kicks in and pays any claim above the $50,000 cap.

Board of Supervisors President Mike Lazarus said he would like to see the county use the savings to create a rainy day fund, as self-funding insurance costs can be a gamble depending on the health of employees.

"When you are running a self-insured program, you never know what is going to happen," Lazarus said. "You may end up with a year where it is $200,000 over."

Lazarus said when the county sets its budget, he is going to encourage the board to continue to budget $2 million for insurance.

"If we can continue this downward trend, we could build up quite a rainy day fund," Lazarus said. "Once it gets enough money in it, we could move it to black top some roads or pay off a debt. We could do anything with it."

One money-saving factor that could have a larger impact in 2017-18 is the county's hire of nurse practitioner Stacy Cook. Amongst Cook's duties is seeing county employees.

Cook only started seeing county employees in February, with just three months left during the insurance fiscal year.

Lazarus said a full year with the county paying for fewer emergency room and after hours clinic visits thanks to employees instead visiting Cook would have a big impact.

"Stacy is saving us money and having a nurse practitioner to go visit is very convenient for our staff," Lazarus said. "The employees do not have to pay copay, and they can go in and see her without a long line.

"Not only is it saving us money, but it is also creating a healthier workforce. A healthy workforce is a better workforce."

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