COUNTY PROVIDED EMPLOYEE HEALTH INSURANCE—A HUGE BENEFIT TO EMPLOYEES AND A HUGE COST TO TAXPAYERS

June 12, 2018

How would you like to pay $32.50 per month or $390 per year for health insurance while your employer picked up the rest of the cost?  That’s exactly what happens if you are a Jasper County employee (or Commissioner).

 

During the budget hearings, the BOC heard from Kelly Fox, the insurance broker used by the county.  He told the BOC that there was a proposed 60% increase in premiums over the current Humana plan because, as usual, the county’s health insurance loss ratio was 101%.  (For many years the loss ratio has been over 100%.)

 


Currently the cost of health insurance is $423.12 per month for a single employee.  The employee pays $32.50.  The county (taxpayers) pick up the rest of the costs

The County’s share of health insurance for all participating employees, based on Mr. Fox’s presentation, is $542,508 per year.  With the proposed increase, the Humana cost would be $923,216 per year.

Humana is the lowest cost in the fully insured market, according to Mr. Fox.  He also said the BOC could do a “partially self-funded plan.”  This sounds disastrous to TWG, particularly if there was more than the usual 100% loss ratio.  There is no way to determine how much a self-funded plan would cost the county (taxpayers).

Based on what was said, “With a self-funded plan there would be a $160,000 increase and it would be on a totally different platform.”  We are not sure what that means, and we are not sure the commissioners understood it either.  Mr. Fox said he didn’t know what the cost would be with the “ABA (Cigna PPO) plan until the employees do a health survey.”  However, on the handout given to the BOC, the self-funded plan shows an annual cost of $702,579.

With this huge increase in premiums the BOC Chair suggested an increase in the employee share to $60 a month or $720/year.  Nothing was decided at the meeting, and Kelly Fox is to bring back more figures.  What cost figure the BOC will use for the budget is unknown.

In addition to this extra health insurance benefit, the BOC plans to give the employees a 3% salary increase at a cost of another $600,000+.

EXAMPLE:  Employee making $31,200 per year ($15/hour)

Salary    $31,200

Health insurance benefit – $4,800 ($400/mo or more) paid by county

6% retirement benefit – $1,872 (County adds 6% of salary to retirement plan annually)

Actual Salary + Benefits, not including life insurance, FICA, Medicare, Unemployment, etc.$37,872 

3% raise = $936——————>$38,808

 

EXAMPLE: Department heads make $50,000+

Salary  $50,000

Health insurance benefit – $4,800 ($400/mo or more) paid by county

6% retirement benefit – $3,000 (County adds 6% of salary to retirement plan annually)

Actual Salary + Benefits, not including life insurance, FICA, Medicare, Unemployment, etc. $57,480 

3% raise = $1500————–>$58,980

 

TWG

Citizens, be informed and stay informed!  Only by being informed, can the citizens understand what is being done and talked about, and then press our officials to make good decisions for everyone in Jasper County.  That is our goal with the Taxdogs blog.

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4 Responses to COUNTY PROVIDED EMPLOYEE HEALTH INSURANCE—A HUGE BENEFIT TO EMPLOYEES AND A HUGE COST TO TAXPAYERS

  1. Your Commissioner Serves the Taxpayer Once Again-Bend Over says:

    These health insurance premiums are a fraction of what I pay, and that is with very large deductibles. It is insane that the taxpayers are providing a Lamborghini plan at Kia price. This is what you get when county commissioners get to select their insurance benefits paid for by taxpayers dime.

  2. Carol McElheney says:

    I have never understood why the county taxpayers are picking up the tab. As a teacher, I paid monthly a whole lot more and as a retiree still do. Is the school board paying for teachers insurance?? Surely not. So why does the county pay for their employees???

  3. Count your blessings says:

    It appears the county has many unhealthy people.

    $60.00/month is still a bargain when considering that the taxpayers pick up the rest of the increase.

  4. D. Shep says:

    Once again, thank you for the information. Insurance costs are rising everywhere, why it has to be paid by County tax dollars is beyond me. Apparently just another tax increase coming our way and nothing we can do about it with the current system in place. Change has to happen and happen fast before we see more shuttered buildings in our town.

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