FAYETTEVILLE — Dealing with an important determination about advantages for workers, Cumberland County goes to ask its employees for his or her perspective.
Cumberland County will survey its staff within the coming weeks to see whether or not they choose greater premiums with decrease deductibles, or vice versa, as a part of the upcoming fiscal yr’s medical health insurance plan.
The Board of Commissioners on Monday unanimously accepted taking $2 million from the county’s normal fund to maintain premiums and deductibles the identical as final yr as a approach to maintain excessive and rising well being care prices in test for workers.
Earlier than finalizing these charges, although, commissioners wish to see what employees choose.
Commissioner Jimmy Keefe, who objected to not reducing deductibles at a earlier assembly, launched the concept of a survey Monday.
“I’m not asking for any further cash, however presumably paying a better premium to get a decrease deductible,” he mentioned.
Oftentimes, Keefe mentioned, staff are unable to pay the excessive deductibles, leading to letters and calls from assortment businesses.
“It’s only a revolving door of ache and struggling,” he mentioned.
The present deductible for people, below the county’s plan by means of Blue Cross Blue Protect, is $2,000. For workers and their households, it’s $6,000.
The month-to-month premium for the standard wellness plan is $21 for people and $296 for households.
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How premiums affect deductibles
Cumberland Finance Director Vicki Evans mentioned key variations exist between premiums and deductibles that stop an actual offset in will increase and reduces to both.
“The premiums give the county upfront cash as a result of that’s being deducted from the staff’ pay each pay interval, however the deductible is on the again finish,” she mentioned.
Most staff are removed from more likely to pay the complete deductible, as that requires receiving that a lot well being care in a given yr.
“Lots of our staff, they by no means meet (the deductible),” Evans mentioned. “They go to main care visits solely through the yr. Major care visits are solely topic to copays. There’s no actual affect on the individuals who could also be paying extra for a premium with out further profit.”
To find out the impact of a better premium on the deductible, Evans mentioned, the county’s insurance coverage dealer might want to run figures that account for a collective claims historical past amongst staff.
In response to a presentation to the county throughout its earlier assembly, annual paid claims rose to over $22 million, a rise of 21.5%.
Evans mentioned she expects to have the survey outcomes able to current to the commissioners by their second assembly subsequent month on April 18.
Rising well being care prices
Earlier than the board’s settlement, Cumberland was projected to have a $4.38 million deficit in well being care prices for the upcoming yr, in response to the county.
Past the $2 million from the overall fund, the board agreed to boost employer contributions as a part of subsequent yr’s finances to make up the remainder of the prices.
Final yr, earlier than the rise in paid claims, the board had deliberate to lower deductibles by $1,000, however rising prices rendered that financially unimaginable.
“It’s simply not excellent news,” Chairman Glenn Adams mentioned at a earlier assembly upon listening to the information.
“A profit isn’t a profit in case you can’t afford to pay it.”
To maintain the price of that profit the identical for now, the board determined to speculate the $2 million.
However these prices might maintain rising.
“The county is constant to observe medical health insurance value traits on a month-to-month foundation,” an emailed assertion from the county mentioned.
“Developments are exhibiting medical health insurance prices are rising. Nevertheless, annually the dealer will consider and decide feasibility of assorted deductible quantities.”
County retains well being reimbursement plan
In an try to maintain well being prices low for employees, the board additionally determined to maintain in place the well being reimbursement account for workers.
The HRA, which was established final yr, permits staff, as soon as they go over the $1,000 deductible mark, to use for reimbursement of well being prices as much as $1,000.
The dealer, nonetheless, didn’t advocate renewal, because it prices the county $7,000 per 30 days in administration prices.
“This isn’t the standard approach to deal with deductibles however is a approach the board might assist members in managing medical health insurance prices,” county officers mentioned.