County approves employee health benefits package

May 14--DAVIDSON COUNTY -- Davidson County Board of Commissioners heard a presentation regarding employee health benefit packages during a recent meeting.

The board unanimously approved the 2020 health benefits package despite questions surrounding increases to the plan. Larry Reece, senior vice president of USI Insurance Services, presented renewal information for basic life insurance at no increase to employees, a flat $10,000 benefit for employees and a two-year rate guarantee.

Medical and dental also has no increase, but the forecast for self-funded medical and prescription programs involved two plan changes, which curbs what would have been a 9-percent increase to 6.8 percent.

"The industry standard is usually 6 to 7," said Casey Smith, assistant county manager, who credited the county's wellness program for defraying rapidly-increasing costs of the program.

Nevertheless, Commissioner Steve Shell questioned the long-range sustainability of rising insurance costs. He likened the medical industry to the market for cable television. After reaching a certain point, he said, those who have health insurance will no longer be able to maintain that level of spending.

"I just wonder at what point they price themselves out of the market," Shell said. "People can't afford it."

Shell cited the rising costs of housing, groceries and other monthly bills, saying salaries can't keep up with inflation. To that point, employee salaries in the county have seen more modest increases than the insurance plans presented.

Beginning with the passage of the county budget in 2017, employees receive a $500 bonus and a cost-of-living increase of 1.5 percent annually. Shell said he isn't blaming the insurance companies for passing down the cost of healthcare to the consumers, noting that the rising costs mirror the increases seen in healthcare overall.

Despite the acknowledgment, Commissioner Todd Yates echoed Shell's sentiments that annual increases like the one recorded this year are prohibitive to a majority of employees.

"Seven, 8 or 9 percent is not sustainable to the average citizen," Yates said. "Not many people can afford that."

Staff writer Daniel Kennedy can be reached at 336-888-3578, or at [email protected].

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