Health plan cost savings reported

The health insurance fund has about a $900,000 year-end carryover.
By NANCY TULLIS
VINDICATOR STAFF WRITER
LISBON -- Columbiana County commissioners expect to save $800,000 in the county's health insurance plan in 2006, including a $400,000 savings over 2005 in payments from the county's general fund.
Commissioners explained they saved money through discounts and negotiating rates, and there were fewer claims in 2005 than anticipated.
About 18 months ago, payments into the health insurance fund were about three months and nearly $1 million behind, Commissioner Sean Logan said. Through discounts and other savings since then, payments have been made into the fund and there is now about $900,000 in reserve for 2006, he said.
Logan and Commissioner President Jim Hoppel approved a $25,000 contract Wednesday with Morris Financial Group Inc. of Salem. The company will serve as broker for the county's health insurance plan with Anthem.
Commissioner Gary Williams did not attend Wednesday's meeting.
Previous plan
The commissioners previously approved a health insurance plan with Anthem for 2006. Logan said Morris Financial was also the county's broker last year, but broker fees were part of Anthem's premiums, and Anthem then made payments to Morris Financial.
Logan explained that health insurance payments are made into a health insurance fund that is separate from the county's general fund. Commissioners approve payments into the health insurance fund from the general fund for county employees paid from the general fund.
Health insurance payments also come from county Job and Family Services, highway and sanitary engineers, the office on aging, the port authority, mental health recovery services board and Buckeye Water District for employees enrolled in those departments.
Hoppel said the total paid into the health insurance fund in 2005 was about $4.9 million, with about $1.8 million from the general fund.
From general fund
Logan said with discounts and other savings, and possibly fewer claims in 2006, about $1.4 million should come from the general fund in 2006.
Logan explained the health insurance plan was previously a two-tier system with 106 employees on single coverage and 361 employees on family coverage.
He said employees will now be on a four-tier system, including categories of employee; employee and spouse or employee and one dependent; employee with two or more dependents; and family, including two adults and one or more dependents.
December is the open enrollment month for Anthem, and commissioners have instructed department heads to report any additions or changes by Jan. 9.
tullis@vindy.com