Insurance rates jump for county employees

Paychecks of Whitman County employees will drop next year, as employees must cover skyrocketing rates for health insurance coverage.

“It’s just one more thing on our employees,” said Commissioner Michael Largent. “I’m sure there will be some people working just for insurance.”

The county insures employees through the Washington Counties Insurance Pool. Largent sits on the pool’s board.

Monthly insurance payments out of employees’ pockets will increase as much as $1,128 per month. The county pays $653 toward employees’ insurance.

That would be the stiffest increase in the high-end plan option which carries a $1,807 monthly premium.

Lowest cost plan now offered will have a cost jump from $583, which was all covered under the county’s share, to $678. That bottom end plan requires employees pay the first $1,500 in medical costs each year and up to $5,000 total per year.

“I wouldn’t be surprised if we lost some employees over this,” said Largent. “The county isn’t on the hook for the increase. The employee is.”

Mike Shelton, executive director of the pool, said rates in prior years did not increase at a rate to keep up with costs. This year’s big jump corrects the pool’s rates to match market rates.

Insurance company information also shows employees of county government have a greater demand for health care, said Shelton.

That, said Largent, would likely result in similarly high rates if the county switched to another insurance carrier.

Employees can get plans with lower monthly premiums, but those plans will include higher copays, higher deductibles and a higher cap on the maximum employees would pay out-of-pocket.

Shelton added the National Healthcare Reform Bill also contributed to the increased costs.

The reforms lay out several new mandates for insurance companies. Insurers must now waive a waiting period for children up to 19 who have pre-existing conditions. Insurance must pay 100 percent of preventative care costs. The lifetime cap on medical benefits has been eliminated. Children up to age 26 can be covered under their parents even if they are no longer a legal dependent.

Increases in the insurance pool’s plans for single employees range from $95 to $1,128 per month. Employees who insure their families are faced with increases of up to $303 per month, though some plans will be cheaper, one accounting for a $21 reduction in the monthly premium.

Employee unions are currently negotiating a 2010 contract with the county, which could change the county’s contribution.

According to figures from county Human Resources Director Kelli Campbell, insurance is expected to cost the county $1,490,304 in 2010, and 2011 if the county does not increase its contribution.

Commissioners must commit to the pool’s insurance plan by Oct. 11.