County health insurance rates on rise

June 30--Wichita County officials got some more bad news Friday that could affect the upcoming fiscal budget.

On a conference call with the county's health insurance provider, Wichita County Commissioners were told employee health insurance is likely to go up by as much as 8.1 percent.

The Texas Association of Counties offers a health insurance plan to participating counties in the state. The rates for each county vary depending on several factors, including the county's number of health claims.

According to TAC, most counties in the state are seeing increases between 7 and 9 percent. Wichita County's claims for the past year were running high at 104 percent of the loss ratio. While their final numbers will not be compiled until November, Wichita County said they would like a preliminary look so they can plan the next fiscal year.

If claims improve by September, TAC could offer a lower rate, but such a drastic change is unlikely in such a short time period. Instead, the commissioners reviewed alternatives such as higher deductible plans or private exchange options.

Commissioner Jeff Watts asked if there were any specific health problems in Wichita County employees that caused the high insurance claims. The TAC representative said the highest costing health concerns in the county were employees with renal failure, heart disease, cancer, and several with diabetes and/or high blood pressure.

If the county covers the additional costs at the same insurance level, County Judge Woody Gossom calculated it would cost an extra $180,000 per year, or about another $30 per month, per employee.

A "more aggressive" wellness incentive program during open enrollment could improve future rates. Imposing penalties or surcharges for employees who chose to not participate in wellness programs or who used tobacco and did not complete a tobacco cessation program, are tactics tried in other counties including Johnson and Grayson counties.

The private exchange service would allow the county to allocate a certain amount of money, perhaps $900 per employee, and that employees could choose their own insurance service among up to 10 choices. If the employee's choice was more than the allotment, the employee paid the difference. If the insurance came in below the allotment, the county could decide to keep the savings or allow the employee to keep it in a health savings account.

Commissioner Barry Mahler said it's something they are really going to have to look at if just staying with the same insurance will cost the county an extra 8.1 percent.

Commissioners asked for a variety of scenarios to decide from and will make a final decision during the budget planning sessions that will continue through the end of August.

Commissioners will meet Monday for a regular meeting and again Wednesday for a special session to discuss possible staff reductions. The court chose 20 possible position eliminations and the affected departments will have an opportunity to discuss the situation with the court.

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