 Those present for the meeting were Jan Schumacher, who chairs the
committee; Andy Anderson; Pat O'Neill; Kevin Bateman; Bill Martin;
and Pamela Meagher, insurance administrator. Guests included Nancy
Schaub, Travis Shock, Nina Huddleston and county board member Terry
Carlton.Voluntary insurance
Travis Shock, a representative of Colonial Life Insurance, was
present to offer the county a new voluntary insurance option.
Currently, employees of the county are provided the option of
taking on voluntary insurance through Aflac, but there have been
issues with the administration side of the contract. Colonial Life
could be offered as an alternative.
Shock told the committee that Colonial Life is only slightly
cheaper than Aflac; the real draw to his company is the option for
group enrollment. Aflac uses an individual-based enrollment system,
while Colonial Life uses a group chassis program that creates a
database in which each employee is listed under their plan. Such a
system makes things easier for the human resources side of the
operation.
Committee member Pat O'Neill asked if this would be provided with
Aflac or instead of Aflac. Administrator Pamela Meagher replied that
it could be either, but the treasurer's office does not want to
offer additional options.
Board member Kevin Bateman said he believes adding Colonial Life
would make the number of options too high. "It's getting
ridiculously redundant," said Bateman. "We need to go one or the
other."
"The treasurer's office is overwhelmed," said member Andy
Anderson.
The problem the county is having with Aflac does not lie with
issues concerning insurance claims being paid. The county is having
problems with Aflac's representative not being reachable, and there
is too much paperwork that is being held up in the treasurer's
office.
"The big issue is the billing," said Meagher.
It was decided that the county would take some time to determine
employee satisfaction with Aflac, and then the issue could be
revisited.
Shock works with Tazewell County, the city of Pekin and Illinois
Machine & Tool.
Quarterly insurance report
Nancy Schaub, an employee of R.W. Garrett Agency, was present to
provide the committee with bad news and good news.
The bad news was that the county will not be receiving rebates
from Health Alliance, as they were not deemed by the federal
government to be overcharging for their services.
The good news came from the quarterly report. "You (the county)
are running in the black," said Schaub.
From May 1 through July 31, total expenses came to $309,424. This
is out of a premium of $356,753, leaving a net profit of $47,328.
Schaub attributes these figures to two things. First, the county
stayed with Health Alliance, despite a price increase. Second, the
county has every employee placed in just the right plan for each
person and their individual needs.
Pat O'Neill believes that a third reason would be that employees
are finding ways to trim their medical bills, such as using physical
therapy to avoid unnecessary surgery.
Schaub also reported that only 32 percent of the employee claims
come from catastrophic claims. Most companies have claims closer to
a 50-50 split.
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Schaub reported that she has been taking classes on health care
reform in order to prepare for upcoming federal health care changes
that could take place in 2014. She also wanted to correct the
minutes of the previous meeting, as the corporate office of R.W.
Garrett is in Lincoln, and a satellite office is in Bloomington.
County board member benefits
Some clarification is needed to determine if board members will
continue to receive group health insurance coverage.
A resolution from 2011 reads: "Following the November 2012
general election, when inaugurated to the term of office for which
they are elected, re-elected, or appointed, these members will not
be afforded group health insurance coverage through Logan County."
"Surely the intent is that premiums will not be paid for board
members. The question is: Can the board members, especially those
that have been on the insurance, continue to have it and pay the
premium themselves?" said Schumacher.
The question becomes: Should the board members be allowed to have
the health insurance if they are willing to pay?
Bateman argued that group health insurance being paid by the
county for board members is too expensive to be worth it for 12
people. "If they (the board members) pay 100 percent of the premium,
that's fine," said Bateman. Such a policy could be applied to dental
insurance as well.
Bateman also said that a resolution for board members needs to be
worded carefully so that everyone knows they need to pay their
premium.
It was also determined that this stipulation should not be
applied to life insurance. Life insurance will continue to be
offered to board members.
Workers' compensation premiums
Meagher reported that due to switching providers for workers'
compensation allocations, the county's premium has dropped from
around $110,000 to about $20,000.
"This brings significant savings for the health department, the
highway department and the cemetery department," said Meagher. The
three departments feed the recovery of funds paid for compensation.
Utility aggregation
There was also a short discussion as to the letters that were
mailed to Logan County citizens concerning utility aggregation.
Schumacher said she had received a phone call from a couple who live
in Logan County but have their mailing address in Kenney (in DeWitt
County). They had not received a letter of notification concerning
the possible switch in energy providers.
Schumacher said there are other citizens of Logan County who have
fallen through the cracks in this manner. Steps are being taken to
ensure these people are notified.
[By DEREK HURLEY]
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