County Cost Savings Ideas - Health Insurance

This is an email I sent to the Health Committee on April 30-

I have spoken to several County employees who have interest in a mutual benefit with the County as it relates to Health insurance. As you are aware, the cost of Health insurance is ever-increasing and a considerable burden on the taxpayers. The 2008 budget for the County's Health, Dental and Vision Self-Insurance fund was more than $8.5 million.

I would like to request that the Health Committee review and discuss the impact an "opt out" for County Health insurance for County Employees who fit predetermined criteria and elect not to take coverage. I recommend that proof of alternate insurance be provided and kept on file, however this program could offer substantial savings to the County as well as a benefit to those with dual (spouse) health insurance coverage.

This has been done with success around the country; we may be able to realize some success by offering County employees an incentive to take their spouse's coverage, providing a nominal allowance ($150-$200 / month) to offset premiums for the alternate policy. In comparison, I believe that family coverage offered by the County is in the order of $10,000 per year - therefore each employee electing to "opt out" of health insurance could receive a $2,000 benefit, and provides the County an $8,000 savings. While this may seem insignificant, just 60 employees participating in the "opt out" could result in approximately $500,000 for the County; 120 could be $1 million.

Here are some links of municipalities which have enacted such a program, and sample forms:

http://www.nassaucountyny.gov/agencies/comptroller/smart_savings.html

http://www.apria.com/resources/1,2725,494-738919-1,00.html

http://www.co.walworth.wi.us/county%20board/website/Agendas-Minutes/Human%20Resources/2007-2008/Minutes/November%2013,%202007.pdf

http://www.talbotcountymd.gov/index.php?page=Benefits#health

http://www.co.pinellas.fl.us/persnl/benefits/health.htm

http://www.lbo.state.oh.us/123ga/fiscalnotes/123ga/HB0379HR.htm

http://www.spotsylvania.va.us/emplibrary/New%20Emp.%20Benefit%20FY2008.pdf

http://www2.co.multnomah.or.us/County_Management/Benefits/Forms%20&%20documents/Medical-Dental/Medical%20Opt%20Out%20Flyer.pdf


There is also a Shared Municipal Service Consortium Initiative (SMSI) grant program that we might want to consider finding out more about-

http://www.dos.state.ny.us/lgss/smsi/smsihealth06-07.html


The NYS OGS also has a link for a similar program.
http://www.osc.state.ny.us/localgov/costsavings/index.htm