CLARK CO. TO LOOK INTO INSURANCE OPTIONS
Monday, February 28th, 2005 -- 12:06 PM
After experiencing a nearly 30-percent increase in insurance costs in the current budget, The Clark County Personnel Committee is turning to a consultant to see if there are savings to be found.Barb Petkovsek of the Department of Administration says Clark County is currently ?self insured??
"We do not have a fully insured plan," Petkosvek explains, "We pay for a third party to administer all of our claims and we pay administration, reinsurance and actual medical claims and a portion of prescription costs."
A feasibility study ordered on Friday will explore whether the Wisconsin Counties Group Health Trust Account, Wisconsin State Employer Insurance Account or the Security Health Plan might be more cost-effective than Clark County?s plan.
Petkosvek says rising medical and prescription costs and a couple ?large exposures? have driven county costs up, but she?s not sure things would be any better if they weren?t self-insured.
"Because with self insurance, you only pay your actual medical costs or prescription costs; our third-party administration has been very cost-effective in the industry," Petkosvek says.
At some County Board meetings, supervisors have questioned if county employees are paying their fair share of insurance costs. Petkosvek says it?s not easy to change the contracts, especially seeing employees? unions have the trump card of forcing arbitration.
"When you go to arbitration, what's looked at is the "comparables" which are various other counties," Petkosvek explains, "Most of our employees are paying a 15-percent contribution for health insurance."
"Most counties are just beginning to get 3-, 5-, or 7-percent from their employees."
However, some Highway and Forestry and Parks Department employees have been grandfathered in under a past contract where they pay none of their insurance costs. At the time, it was a concession the county made in lieu of a salary increase.
The feasibility study should be done by mid-April.
Any changes to the county?s insurance plan could go into effect by as early as January 2006.
Feel free to contact us with questions and/or comments.