Commission adds penalty for smokers to insurance plan

Aug. 6--The Reno County Commission on Tuesday approved new health insurance premiums for employees that splits about a 4 percent increase in rates between the county and its workers, but also creates a new surcharge for smokers.

The county, which is primarily self-insured, also adjusted its "stop-loss" cap with Blue Cross/Blue Shield to significantly cut a projected $250,000 rate hike.

The result, Human Resources Director Renee Harris advised the commission, is a $10 to $40 increase in monthly premiums for employees, depending on which plan they participate in, and a $30 to $68 hike for smokers.

"A few may be higher, depending on the level of wellness they participate in," Harris said.

The county's previous stop-loss rate, which is the level at which Blue Cross coverage kicks in for an individual worker, was $75,000. The commission on Tuesday agreed to increase that to $100,000.

When the county first started with self-insurance in 2015 it was $50,000, Harris said.

"Looking at all the numbers and utilization, we feel it's a good move," Harris said.

Although there's money in the budget for the full amount, the move is projected to cut the county's premium increase by $180,000. Harris noted there would be some higher claims the county will likely have to cover.

"We're comfortable with this option," County Administrator Gary Meagher told the commission. "We're taking on more risk, but if you look at it historically the last few years, we'll save quite a bit of money going forward."

The county is also changing some of the requirements to qualify for discounted rates, rewarding those who more actively participate in wellness programs, Harris said.

"The plan design is not changing, in that we'll have major medical with a $1,500 individual deductible and $1,000 co-insurance," Harris advised. "Our high deductible is $2,700 for an individual and $5,400 for family."

In June, there were 114 employees with the major medical plan and 213 under high-deductible, and they expect that ratio to stay about the same. Of those covered by high-deductible plans, 134 were contributing to health savings account plans.

Under the new tobacco plan, if an employee participates in an 8-week smoking cessation program, they can qualify for the non-smoking discount. If they don't quit after participating, however, they would have to take it over again the following year to continue to avoid the surcharge.

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