BENTONVILLE -- Benton County employees and their families may pay a higher price for health care if officials approve changes aimed at cutting costs.
The Personnel Committee heard a presentation Tuesday from Barb Ludwig, human resources administrator, outlining potential changes to the county's health care plan. Ludwig said increasing costs prompted the review. Any changes would have to be approved by the Quorum Court and would take effect in January, Ludwig said.
Sick leave bank
Benton County’s Personnel Committee heard an update Tuesday on plans to establish a sick leave bank for employees who have used all their individual sick days in a catastrophic illness situation. Other employees would donate unused sick time to the bank and the plan would be administered by a committee of employees from all departments. The plan must be approved by the Quorum Court.
Source: Benton County
"Over the last several years we've had to ask for increased funding for the health care fund," Ludwig told the justices of the peace. "So we went back and looked at things we could change while keeping this attraction for our employees."
The county's health plan is self-funded, Ludwig said. Brenda Guenther, comptroller, said the end-of-year balance has been dropping for several years as claims increased faster than the amount of premiums received. According to Guenther, the county had about $2.2 million in the fund at the end of 2009. That balance dropped to just over $2 million in 2010, then about to $1. 9 million in both 2011 and 2012. In 2013, Guenther said, the balance dropped to $1.7 million. Then in 2014 the balance dropped to under $800,000 and to $534,000 in 2015.
At the end of 2016, Guenther said, the balance was $23,745 and the Quorum Court transferred $470,000 into the fund from the general fund. Ludwig and Guenther said the current year's claims paid and premiums received are on track to leave a balance of about $300,000.
Ludwig said the biggest cost to the health plan is in prescription drugs. She blamed part of the problem on employees, who ask for specific drugs they may have seen advertised, and part on pharmaceutical companies.
"They make money by making us take and pay for their expensive drugs," Ludwig said.
Employees are eligible for the health plan at no cost, Ludwig said. Employees pay $114 per month for health insurance for themselves and one additional person and $290 per month for family coverage.
Ludwig said the changes being considered include a higher deductible of $1,500 for individuals and $3,000 for families. The county now has a range of deductibles beginning at $500 for employees who meet certain criteria. The maximum out-of-pocket costs to employees would also be increased, to the deductible plus $5,000. Prescription co-pays would change from the $10, $20 and $35 now in the plan to $15, $30 and $50. A fourth tier co-pay for drugs costing $500 or more per month would be adopted where employees would pay 20 percent of the cost in instances where an employee is unwilling to try a less expensive drug.
Other changes include eliminating free family coverage when both spouses work for the county; reducing the number of chiropractic visits from 24 now permitted to a capped benefit of $650; setting restrictions on gastric bypass surgery; and changing the requirements for retiring employees to qualify to continue on the health care plan. Guenther said the proposed changes could save the county as much as $500,000 in a year's time.
Adriane Carr, justice of the peace for District 12, said the county has to make changes in order to continue the kind of valuable health care plan employees have received.
"I appreciate you looking ahead and thinking outside-the box," Carr told Ludwig.
NW News on 06/21/2017