County tackles double-digit increases to its self-funded employee health insurance plan
Genesee County governmental leaders have trimmed the fat from the county’s self-funded employee health benefits plan that has been hit with consecutive years of double-digit premium increases, County Manager Matt Landers said this week.
“I will say that the plan is run lean, believe it or not,” Landers said following a vote of the Genesee County Legislature’s Ways & Means Committee to approve monthly rates for 2021, effective Jan. 1. “There is no healthy reserve fund balance in that fund. We are just covering our costs.”
And the costs to the county are considerable as participants pay an average of 15 percent of the total premium, with the county picking up the other 85 percent.
Genesee County has budgeted $13,994,483 for 2021 for actual claims plus administrative and ancillary costs. Approximately 680 employees of the county and Genesee Community College are enrolled in the plan, with total participation including additional family members at approximately 1,660.
Landers said that medical and prescription drug premium rates are increasing 17.6 percent in 2021, and this is on the heels of a 10-percent increase for 2020.
“While it is painful, we are increasing the premiums as little as possible,” he said. “We’re trying to be mindful of the impact it has departments, on taxpayers and on individuals that are paying these increased premiums through cost sharing.”
He said the goal is to have everyone on the plan pay 15 percent of the total premium – which will be achieved through negotiations with the county’s four unions – and that each county department has a budget for the health care costs for its employees.
“Right now, the average county employee is pretty close to paying 15 percent,” he said.
For an illustration of the cost, an employee signed up under “Family (3 or more)” in the Health and Wellness Plan will pay around $339 per month for that coverage in 2021.
With the total monthly premium set at $2,261, the county is responsible for $1,922 per month.
Landers explained that being self-insured means that all medical and prescription drug bills come directly to the county.
“We’re self-insured, so when a person goes in for a surgery or somebody has a premature baby delivered and stays in the hospital two months, we’re not sending (bills) to Blue Cross & Blue Shield, we are our own self-insured company,” he said. “So, basically the doctor or the hospital … sends a bill to Genesee County for $175,000 and we’re the ones paying that.”
Other monthly rates under the Health and Wellness Plan include Single, $696; 2 Members, $1,391; Retired, single, $696; and Retired, family 3 or more, $2,261. The county also offers dental and vision benefits for both Single and Family.
Legislature Chair Rochelle Stein said management and health plan consultants did their best to keep costs as low as possible.
“We understand that this increase in premiums is necessary, but if you go on to the market, you will see that it is right in line. So, I’m just pleased with this, considering where we are today,” she said.