Porter County health insurance costs decreasing

Feb. 06--VALPARAISO -- Porter County spent more than $12 million in 2014 on its employees' health insurance. This year, that figure is projected to be about $8.5 million.

Decreasing costs have been the trend since 2014, when county officials embarked upon an incremental but comprehensive overhaul of health insurance policies. At the time, budget shortfalls and cost overruns were the norm.

Now, in 2019 alone, the county stands to save about $600,000, according to a report by R.E. Sutton, which the commissioners hired to help lower costs. Sutton analyst Tony Bontrager presented the projections and other findings at Tuesday's meeting.

"Over time you guys have made some really good changes," Bontrager told commissioners.

The changes he referred to are complicated and numerous, but in broad terms the county has gone from a Byzantine system with little power to negotiate prices in 2014 to a simpler, more cost-effective contract with United Healthcare.

For county employees, coverage today looks and functions much like what one would expect from private employer insurance.

Bontrager explained multiple metrics in the report that, taken all together, also suggest costs will continue to fall. Still, the commissioners emphasized they're not done trying to cut costs.

They pointed to the free clinic agreement with Franciscan Alliance, where county employees can go for routine check-ups, preventative care and free prescription drugs. Those services aren't billed to United Healthcare, which would mean further savings in the coming years.

Claims alone account for almost 90 percent of total insurance costs to the county, Bontrager said.

What's more, the clinic agreement represents an opportunity for even more savings, if enough county employees use the clinics.

The commissioners asked county Human Resources Director Rhonda Young whether she was confident more employees will use the services more often.

She said employees love the clinics.

Sick bank

In the same meeting, commissioners introduced another change for county employees. They voted unanimously to end the decades-old "sick bank" system and replace it with a more traditional, short-term disability policy.

Introduced in the '90s, the sick bank allowed county employees to "donate" unused sick days to a pool from which all employees could draw for additional time off.

County Attorney Scott McClure said that, in addition to changes to employee policies, the county was struggling to remain compliant with federal privacy law. A board of county officials made decisions about use of the sick bank, which required knowledge and discussion of employees' health care details.

For 90 days, starting when enrollment begins, the sick bank will remain intact until the policies kick in. According to a representative of General Insurance Services at the meeting, employees who opt for the coverage will see single-digit deductions from their paychecks, even if initial participation is low.

Traffic study

Later, the commissioners voted 3-0 to send the results of a traffic study to the Indiana Department of Transportation, in hopes the state will widen parts of U.S. 6 in the coming years.

The study, which measured traffic on U.S. 6 between Meridian Road and Calumet Avenue, determined planned development will require the highway to be expanded to four and even six lanes at points.

Money for the study, the free clinic agreement and the new disability policy was freed in part by the savings on health insurance, said County Commissioner Jeff Good, R-Center.

"We're starting to see the rewards of all the work," Good said.

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