Counties Examine Cost Of Health Care

The combination of increasing costs and a workforce shortage have put counties in a financial bind. Increased salaries and attractive benefits packages are needed to attract and retain county employees. However, county government budgets are strained due to the increased costs and pressure to contain spending.To that end, local counties must consider what type of health insurance policies are best for keeping costs under control. One possible policy type that can hold costs in check is a self-insured policy, also sometimes called a self-funded policy.A self-insured health plan is one in which an employer assumes the financial risk for providing health care benefits to employees. It differs from a fully-funded health plan in which an employer pays premiums to an insurance carrier.Some counties are considering self-insured policies, while others have already adopted such a plan. Gage CountyGage County already has a self-insured policy for county employees. County Supervisors approved the health insurance policy for the coming budget year at a meeting on Wednesday, July 24, 2024.Ever-increasing insurance costs are making self-insured plans look more attractive to local governments.According to County Clerk Dawn Hill, the county sought bids from more than 20 insurance companies. Many did not bid at all and Hill indicates the ones that did were not competitive, “One of the quotes came in at a 34.8 percent increase.” Jefferson CountyMeanwhile, Jefferson County is sticking with a fully insured plan for the time being but is considering changing in the future. At a meeting on Tuesday, July 23, commissioners spoke with Brad Swiggart of The Olson Group. Swiggart told commissioners, “You might want to look at it on renewal next year on some self insured options.”Swiggart noted that a nearby county, which he did not name, had saved money by having a self-insured health plan, “It’s probably about overall in the past six years, a tremendous savings of, say, a million dollars.”Because the county would have to administer a self-insured plan, there would be additional work. Commissioner Mark Schoenrock noted, “Kris (Riggle, County Clerk) might need an additional person in her office to administer it.”While the commissioners did not believe this year was the right year to switch to a self-insured policy, they did plan on changing insurance carriers. The county’s current insurance provider, United Health Care, would be increasing cost by 11.8 percent. Another provider, Medica, would increase costs by 2.79 percent.

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