 The Health Alliance representative,
Jana Oskoui, delivered the bottom lines first.
She said that since May 1, 2007, Logan County employees paid
premiums of $585,965. Yet, claims paid out for that same period were
$1,085,000, nearly twice the premiums.
While there were 14 employees who fell into the over-$10,000,
large-claim category, the anomaly is mostly created by a few county
employees experiencing catastrophic illnesses in the last year.
Three employees had claims over $50,000; one of the insured has had
$710,000 costs in a claim duration and $285,000 this plan year. Next
year is not expected to be much better, at least in one of the
situations.
Using insurance factors, based on the figures for the last year,
the county should have received a 76 percent increase. However, in
the interest of keeping the county business, the insurance company
looked at the prior two years' history, the characteristics of the
group, the community and other factors that might bring the figure
down.
Last year the county rate was dropped 14 percent, so if it were
increased 27 percent this year, that would actually be an increase
of 13 percent over what it was two years ago.
Schaub said that there are some other options that would allow
staying with Health Alliance, and one option in which the rate may
be able to be lowered to a 23 percent increase and not involve loss
of benefits or change in care providers for the insured. Other
options include increasing prescription co-pays or higher
deductibles.
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Schaub pointed out that there are few companies out there right now
that can provide good service, good discounts and a good network of
doctors and hospitals that would meet needs of the county employees.
She said that they would solicit the other major carrier, Blue Cross
Blue Shield, for a bid as well.
Pat O'Neill put forth a motion to put out for other proposals for
insurance bids.
Several board members did not think this would be of any benefit,
given the health claims history that the county has at this time.
Gloria Luster was also concerned for the effect on employees in
mid-catastrophic illness.
John Stewart said that this was considered in the past and that
it is an involved and costly process to get a proposal put together.
It would have cost $5,000 the last time it was considered, and it
would not be likely to yield any better long-term rates.
O'Neill said that four counties like Logan had joined the
Illinois Health Alliance. They had lower premiums because there were
more people in the group, which helped absorb the losses, such as
those the county is seeing right now.
A straw poll showed the motion would fail.
More details will be gathered for discussion in April.
[By JAN YOUNGQUIST]
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