Buffalo County Board sweetens health benefit to retain staff

KEARNEY — Buffalo County commissioners have approved a plan that will add more than $225,000 in health insurance costs to protect county employees from crippling rate increases.

The plan comes at a time when some health insurance rates are increasing 10% to 20%, and when rates for other kinds of protection are going sky high.

One of the employees observing Tuesday's County Board meeting said that as long as the county provides such attractive protection in its benefits package, he'll not be shopping around for a new job.

That assessment echoed what Buffalo County Sheriff Neil Miller said about the package approved on Tuesday.

"I don't think we've had anyone leave because of health insurance costs," Miller said. He said sheriffs and police chiefs face tremendous recruitment challenges in today's competitive labor market.

Candidates for law enforcement vacancies can expect offers of attractive health insurance and retirement packages, but some departments find other ways to sweeten employment offers.

In a sign that the recruitment race has arrived in south-central Nebraska, an anonymous donor of the Kearney Police Department laid out $3 million so officers would have the option of take-home cruisers.

Although the Sheriff's Department is directly benefiting from the sizeable perks in Buffalo County's health insurance, the coverage extends to each of the county's 232 employees enrolled in the plan.

In total, Buffalo County's plan costs $4.2 million. That's up 5.6% compared to last year's cost.

Under Buffalo County's self-insured strategy, employees contribute $350,000 along with the county's $3.8 million to a self-insurance fund.

Similar to a home mortgage's escrow account, the fund helps soften the blow if the county has to absorb expensive claims, as when several employees had costly surgeries and medical treatments.

"The county has had some claims, but this year we had fewer larger claims than last year," said Bob Charlesworth, vice president of the Kansas City, Missouri, firm that has guided Buffalo County's health insurance strategy for 17 years.

Charlesworth told the County Board that Midwest medical care costs are trending about 5% higher annually and that prescription drugs are rising 12% annually.

Charlesworth said the county's self-insurance fund helped ease the strain for Buffalo County in recent years when several employees required very costly medical care.

"We've seen some insurance cost increases at 20%, but that's because they're not funded properly. Buffalo County is properly funded," Charlesworth said.

When an employee has a claim, Blue Cross Blue Shield pays up to $85,000 and the HMLife insurance company pays the remainder.

Buffalo County will continue its $500 deductible.

The county's package pays all of a single employee's monthly premium (or contribution).

Other monthly payroll deductions are $194, an increase of $15 per payroll for an employee and spouse; $157 per payroll, up $12 for an employee and child; and $346 per payroll for an employee and family, up $25.35.

"The reason we do this is for that employee retention," Charlesworth said. "As a benefit it's impactful to all those who participate. We're funding an important benefit for the county's employees."