Logan County Board looks at increase of $75,000 per year to pay employee health insurance

[March 16, 2016]  LINCOLN - Both the Workshop and Regular sessions of the Logan County Board were rescheduled this month. On Monday, March 14, 2016, the board held its Workshop. The Regular session will take place this Thursday, at 7 p.m.

Board members settled in on Monday evening and heard updates from several committees along with discussion on some of the issues the board would vote at the Regular meeting.

During an update from Insurance and Legislative Committee, Chairman Kevin Bateman said monthly premiums for employee health insurance is increasing from $428.11 to $481.83 per month. He said the county pays 100% of the premium for 115 employees, which would equate to a $74,133.60 per year increase over what the county is now paying.

Bateman said he plans to motion that county employees pay $45.00 towards the monthly premium to help lower the county's portion of debt. He said that portion is less than ten percent of the total premium, so the amount seems fair. Bateman said the county cannot keep absorbing all the insurance costs.

Several had questions and concerns about asking employees to pay that amount. Lisa Bobb, who works for the State's Attorney's office, said county employees have not seen what the plans are going to entail.

Craig said there needs to be a conversation about covering insurance costs because the costs will continue to affect the county.

Bateman said another alternative is to have Nancy Schaub of the Garrett Insurance Agency come up with a plan that has higher deductibles, but a lower monthly premium. The county would pick up part of the out of pocket costs, but it could save the county money in premiums. Bateman that the company he works for has insurance with lower premiums than it previously did and it has saved his company thousands of dollars.

Ruben said such a plan could cause a budgeting nightmare with having to account for so many employees.

Based on paying for 115 employees, the total old insurance premiums tallied $590,796 per year. The increase would be 74,133.60 per year, and the new figure would be $664,925.40 per year.

On Thursday, the board will consider the county contribution towards the employee premium and decide whether the issue should go back to the Insurance Committee for more discussion.

County to secure load to aid Health Department

On Thursday, Finance Committee Chairman Chuck Ruben will motion the board go out for a $350,000 loan for the Logan County Department of Public Health (LCDPH).

At last Tuesday's Finance Committee meeting, LCDPH Administrator, Don Cavi, updated the committee on how the budget impasse has kept the department from getting most of the grant money the state owes them, which has forced them to use $100,000 of their reserve money.

Board member Kevin Bateman asked about the repayment plan for the loan.

Ruben said the loan fits under the statutes for borrowing and has to be paid back within two years. He said the amounts the department owes for FICA and IMRF for last year and part of this year have put them over $500,000 in arrears. The department is also waiting on grant money, but the money will be coming in at some point.

Board member Gene Rohlfs asked if the loan would be a line of credit.

Cavi said he would look at it as borrowing from the special fund as a line of credit. They will borrow as needed, paying back into the special fund as money comes in from the state.

Board member Miles Craig said the Health Department is trying to maintain dental services until SIU comes in this fall. If they cannot, it could damage the relationship. He asked Cavi to discuss services affected.

Cavi said the Dental Clinic is the vulnerable department at this point because of operating costs, but he is hoping to avoid shutting the clinic down since so many depend on it.

Cavi said some of the other areas of the department are in better shape than they originally thought. Vendors have been paid up, employees have been paid up, and the building is paid off.

Cavi said the Women, Infants, and Children (WIC) program received funding through February, so that is one area he is looking closely at. He said he does not want to lay off employees. Cavi said there are employee shortfalls in some programs, so he may be able to move some employees around to other areas.

Cavi said with the loan, things will run smoother and the department can keep programs intact. As money the state owes them comes in, some of the payments can go into the special fund. He said electronic insurance billing has helped them get insurance payments more quickly and the department contracts with close to a dozen insurance companies.

Cavi said the Dental Clinic will not have overhead when SIU takes it over and the increase in revenue from it will offset some costs.
 

Craig said the loans they are looking at would be at a low interest rate. LCDPH Finance Director Katherine Yaple gave board members handouts showing some figures.

Ruben said the vote on whether to take out the loan will be a simple majority vote, but the vote to amend the budget to expend that money will require a two-thirds vote. He will motion the Board do budget amendment in the amount of $350,000 for the Health Department loan.

The board will vote on the motions and also resolutions from some other committees at this Thursday's Regular meeting, which begins at 7:30 p.m.

[Angela Reiners]