For $10 a month, Washington County employees can add Air Evac Lifeteam as a benefit to their health insurance.
The County Quorum Court approved the motion by the county’s Personnel Committee on Thursday.
“This has come before us because it doesn’t cost the county anything,” said Ann Harbison, justice of the peace. “Normally, it would cost someone $107,000 if they needed air transport. This is a good thing for employees if they want to take this insurance out.”
Harbison said the voluntary deduction is limited to programs approved by the county.
The benefit costs $5 per paycheck and covers $100,000 for air transport. Regular health insurance only covers about $1,000.
The Quorum Court also approved appropriating $450,000 from the general fund to the insurance benefit fund for 2012.
The county runs a self-funded plan for employees that pays more in claims than it receives in revenue from premiums. The county and employees contribute to the insurance fund.
Justices of the Peace Eva Madison and Candy Clark voted against the ordinance.
Nelson Driver, county health insurance consultant, recommended transferring the money to reduce increases in premiums.
He said the fund needs at least $1.8 million to be solvent by the end of this month when the county renews its own excess insurance policy with Tennessee-based IAT. The company covers more than $150,000.
“They look at solvency of the fund,” Driver said. “We’re still leaking $14,000 each month. By adding the $450,000, we’ll be at a little over $1 million.”
In July, the Quorum Court approved increasing the amount employees pay by 5 percent, the maximum increase to keep the county grandfathered under the federal Patient and Affordable Care Act of 2010. All combined, the increases equal an extra $50,000 for the county.
By staying grandfathered, the county avoids a 38 percent increase to premiums.
Madison and Clark argued $300,000 would meet the $1.8 million recommendation.
“The premiums don’t go into effect until January so we’ll have more money,” Madison said. “The leak won’t be as serious in January.”
Madison proposed amending the ordinance from $450,000 to $300,000.
Justices of the Peace Rex Bailey and Clark both voted for the amended ordinance, but it failed 9-3.
Justice of the Peace Joe Cochran suggested bringing the $450,000 up to $500,000 to “cover the leak” until the end of the year.
“With $450,000 we’re barely covering it,” he said. “Insurance premiums are based on the ability to pay. A $2 million fund isn’t exorbitant and it’s not too small.”
Clark said the Quorum Court shouldn’t rush into any major decision. She said the group can always add money to the fund at any time.
“If we added $300,000 to $350,000, it wouldn’t be jeopardizing our employees premium by one iota,” she said. “According to what our consultant has told us, we’ll be fine when the underwriter looks at $300,000. We can add money at any time if we need to.”