Jackson County mulls health insurance changes amid budget shortfall
But due in part to that streamlined workforce, the county is now grappling with another financial challenge.
For health insurance,
When the pool of about 250 employees, their spouses and dependent children, is healthy, the plan saves significant money, since no insurance company is taking profits off the top.
But when clients suddenly need medical attention, it creates budgeting dilemmas.
"With a larger pool we had less liability," said Finance and Administration Committee Chair
After two years of unexpectedly high claims, the county is now facing a
So far it hasn't affected the county's ability to pay its bills, Hunter said.
But the county is looking at several lean months, with property tax revenue not expected to arrive until September.
"Property taxes account for about
If those state government payments come up short in the next few months, the county could face a tough choice, board members said: take loans from other county funds, or take out a bank loan to be repaid with future property taxes, a measure known as a tax anticipation warrant.
So far, neither has been necessary, Hunter said, but the county board has authorized borrowing internally from the Housing of Prisoners and Ambulance funds, should it become necessary.
"This year has been tight, but we are moving forward," Hunter said. "It has gotten to the point where we know we have to make changes."
The reforms began with recent bargaining agreements between the county and its unionized employees.
Three out of the county's five employee groups -- courthouse workers, ambulance workers, and employees in the circuit clerk's office, represented by the
"Of course nobody likes to pay higher health premiums, but we all know, unfortunately, at this point in time in America it's the way of the world," Noelle said. "We wanted to pay our fair share."
The bargaining was arduous, Noelle said, and nearly reached a breaking point in late September, when the union voted to authorize a strike if the board did not agree to continued negotiations.
Local News
*
The Southern
But, with the help of a federal mediator, the sides found common ground.
"We did a lot of back and forth negotiations and felt the unions strongly understood this was the key financial issue for the county," Hunter said. "They compromised and we compromised, and it's still a very strong plan with very good benefits to the employees."
Nonunionized county employees will see similar changes in coverage to
In addition to the policy changes, the four-year
That includes evaluating plans and bids from health care companies that might wish to take over the county's insurance service, Noelle said.
"We're optimistic and glad they see we're part of the process," Noelle said of the board. "We all want to work together to try to get things solved, instead of kicking the can down the road."
Fundamentally, the work will question the long-term viability of maintaining self-funded health insurance, Hunter and Rendleman agreed.
For Hunter, the certainty and security of using outside insurance outweigh the potential cost savings of a self-funded program.
"As the finance committee chair I would like to budget a single dollar amount each year and know that's what we're going to spend on health care," Hunter said. "That would be my preference."
Using an outside health insurer like
Ultimately, the task force's recommendations will be advisory, Hunter said, and any changes to the county's insurance will require majority approval from the board.
Sheriff's office employees represented by the
618-351-5074
___
(c)2019 The Southern Illinoisan, Ill.
Visit The Southern Illinoisan, Ill. at www.thesouthern.com
Distributed by Tribune Content Agency, LLC.
Disaster assistance available at Miami center
Pet insurance company Trupanion hit with a $100,000 fine
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News