The Porter County
Commission-ers’ decision last month to adopt a reference-based reimbursement
option for its self-funded employee health insurance plan has already saved
more than $1.4 million, it was reported, as the board Tuesday voted to renew
its reinsurance and workman’s compensation policies.
President John Evans, R-North, said the savings come from the “insurance
underwriters taking of notice of the board’s efforts to take better control”
of the plan and the strategy will be continued.
“I think that
speaks volumes,” he said.
Administrator Stewart Miller gave the Commissioners figures on the soon to
be completed 12-month claims cycle, which ends March 31. In the past 11
months, the county’s total claims have reached $9,961,228, roughly the same
reported a year ago, and it may reach $10.7 million like last year.
Miller said the
plan has experienced an average monthly of claim cost per employee of
$1,521, compared to $1,517 in the 2013-14 plan. Administrative costs for
employees this cycle are $130.55 on average.
The total number of
claims for the current cycle is 19,436, which is almost 800 more than were
reported last year. A little more than half of those claims were submitted
for employees and the rest were for spouses and dependents.
In claims paid,
more than half were hospital related, split evenly with 26 percent for
inpatient care and 26 percent for outpatient care, Miller said.
reinsurance, the Commissioners voted 3-0 to accept a plan recommended by
representatives of R and R Benefits, who were introduced by Mike Anton as
part of the County’s “employee benefits team,” for an aggregate specific
stop loss with transplant protection, providing a savings for transplant
operations such as a kidney or lung.
the reinvestment plan option, Troy Scott of R and R Benefits said there were
a number of denials this cycle, which is “not uncommon when you go
off-market but it is indicative of an unhealthy group.” Ailments related to
high body mass indexes and diabetes have required the organ transplants, he
Sitting in on the
discussion, the Commissioner’s insurance plan consultant Stephen Brady of
Heritage Advisory Group, said the firm overseeing the County’s new reference
based reimbursement plan, INETICO, specializes in disease management,
preventive treatment, and overall health improvement.
“It is the most
vital component of the whole plan,” Brady told the Commissioners.
As part of the
education, Evans said the Commissioners will hold meetings with individual
county departments beginning this next month.
Employees will also
receive their new insurance ID cards in the next two weeks, said Leigh
Westergren, employee benefits specialist with Anton Insurance.
manager Jim Anton with Anton Insurance presented the proposed amounts for
the workman’s compensation renewal. The overall premium rate is rising 7
percent. That is based on the experience of claims for injuries on the job
which has increased, he said.
approved a quote for the proposed 2015-16 premium at $601,689. The quote for
the current cycle was approved at $562,713.