County required to adjust healthcare rates
The Perry County Board heard from insurance agent Alex Snedeker that they must adopt a new way of setting health care rates in order to comply with new federal regulations.
The county had been using employee age to set rates. That will no longer be allowed.
Snedeker said there are two methods from which to choose. The first uses only major medical costs when setting rates. It is a very accurate prediction. The composite method includes data from those on the Medical Reimbursement Plan (MRP) which pays out-of-pocket costs for employees who have a different primary insurance policy. MRP is much less expensive than major medical insurance. Composite rates are lower.
Snedeker said that the board should keep in mind that health care costs are expected to rise eight to 15 percent in the coming year.
The new rates would affect all those covered by the county's health plan: employees, employee plus spouse, employee plus child(ren) and families, as well as COBRA and IMRF retirees who have the plan. Per union contract, employees pay nothing for their premiums and only half of their family premiums.
COBRA and IMRF retirees are entitled to receive health care after leaving the job, but must pay 100 percent of their premiums themselves. Snedeker said the premium for a single employee is currently $520 per pay period.
Perry County paid $921,975 for health care costs in 2011, just under $909,000 in 2012 and has paid $190,000 so far this year. The cost for health care in 2010 was between $850,000 and $900,000. In prior years it reached as high as $1.2 million.
Snedeker said that once the county chooses a rate method, it must stick with it for five to 10 years. A decision will be made at a later date.
In other business, the board:
• approved a two-year lease agreement with the University of Illinois Extension for $5,297 per year. Commissioner Sam Robb is authorized to work with UIUC to finalize the agreement.
• re-appointed John Rednour Sr. and Themla Pettiford tot he Perry County Housing Authority Board.
• reappointed Robert Weinhoffer to the Cutler Fire District, Dr. Shawn Beckemeyer to the Coulterville Fire District, Robert G. Templeton to the Pinckneyville Rural Fire District and Monica Kwiatkowski tot he Tamaroa Fire District. All will serve three-year terms.
• heard from Commissioner Robb that there will be a seminar on 'Leasing Farmland for Oil and Gas Production' at 1:30 p.m. on April 23 at St. Paul UCC in Pinckneyville. The program is educational and not considered legal advice. It will be presented by Laura Harmon, Assistant General Counsel, ILFB and Matt Rush, UIUC Extension Agriculture Program Coordinator. It is free. Please call (618)357-9355 to pre-register.