Commissioners cut county costs

PERRY COUNTY — Commissioners reduced some county insurance benefits at the regular monthly county meeting, June 5.

As of Jan. 1, 2023, the county will no longer provide insurance rate reduction for the retirement coverage from ages 55 to 65 for any employees, commissioners decided in the meeting.

Commissioners, council, surveyor and coroner — considered part time elected officials — will no longer be eligible for health, vision and dental benefits. They will also not be eligible for the rate reduction.

County retirees currently on the subsidized insurance plan are being grandfathered into the new county retirement program and allowed to keep their subsidized benefits, commissioners decided by vote.

Retirees at age 55 will be able to option Cobra insurance coverage, which will be good until age 65 when Medicare is available. Before the vote on June 5, the county provided a 50% rate reduction to anyone on the age 55-65 retirement insurance plan. The 50% rate reduction will no longer be available.

Until the end of the year, anyone planning retirement before age 65 will be able to take the benefit, with Commissioner Randy Kleaving saying they shouldn't circumvent someone who had been planning for that retirement. Starting Jan. 1, 2024, the Cobra health insurance plan will be available but the 50% reduction rate will no longer be available.

County health insurance spending is $200,000 over budget, not halfway into the year, said Commissioner Randy Cole. This is 25% of the actual reserve funds, he said. "If the year continues like this, we'll have half the reserve funds used up in addition to all the money we have allocated," Cole said.

"We're a small county with limited resources," Cole said.

Full time regular county employees can still take the retirement benefit but will not receive the rate reduction as of Jan. 1, 2024. Cole pointed out the weekly 30 hour requirement for full time status doesn't apply to elected officials when regarding qualifying members. Council, commissioners, surveyor and coroner are considered part time employees.

Currently, a 50% rate reduction for ages 55-65 is subsidized for county employees. According to Cole, the state requires this insurance coverage to be provided for full time employees but they are not required to subsidize it. In other words, Cole explained, if someone decides to retire from the county, they could have a Cobra insurance benefit up until age 65 but they would have to pay the full cost. The 50% rate reduction would amount to $135,000 over a 10 year period on the family plan. The full Cobra family plan without the reduction costs $27,000 annually.

More employment conditions apply for the insurance, Cole explained. A 20 year employee has to have 10 years active with 15 years on the plan prior to the age starting the retirement plan, minimum age 55.

Decisions are still subject to legal and insurance review.