Sebastian County officials debate insurance plans

story by Aric Mitchell
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Sebastian County employees will have to wait a little longer to learn the future of their health insurance plan.

At Tuesday night’s meeting of the Sebastian County Quorum Court, about 90 minutes of heated discussion between Quorum Court members ended in a stalemate. Voting was delayed to Dec. 7. Next week’s meeting is expected to result in a decision between a full insurance plan and a self-insured plan.

Sebastian County Judge David Hudson advised the court members to seize the opportunity for moving to self-insurance.

"The two things we must focus on as the quorum court are to take care of the employees and stabilize costs," Hudson said. "I am recommending this program based on the testimonies we’ve heard and because I believe it is the most responsible use of taxpayer money over the long term."

Hudson said unused payments in a self-insured plan are profit for the county. Kathy Otwell of Cornerstone Benefits confirmed this fact, noting Hot Springs Village saved $2 million in six years by adopting the plan. Likewise, Fort Smith was able to use a $6 million surplus generated by its self-insured plan to help overcome a budget shortfall earlier in the year.

Under full insurance coverage such as Blue Cross/Blue Shield and QualChoice, overpayment is profit for the insurance company, Hudson noted.

The county would use reinsurance coverage to safeguard liability in the event of overage. According to Otwell, research indicated that 3.5 out of every 5 years are considered "good years" in which the amount paid exceeds the amount used.

Still, Quorum Court members Linda Murry, Lee Webb and Shawn Looper had concerns about the risk factors — concerns Tuesday night’s discussion could not alleviate.

"Call it a leap of faith or a gamble. Which is it?" asked Webb.

The trio were concerned because Otwell’s presentation left them with more questions than answers when weighing the numbers against quotes from three full-insurance providers.

"Change is not what we are concerned about," Murry added. "I just don’t feel we have the numbers in front of us right now to make this decision."

At one point, Looper even moved to accept the Blue Cross and Blue Shield plan. He later withdrew the motion as court members decided that a follow-up meeting with more precise information regarding incentives, risks and start-up costs was needed.

The main order of business, seeking approval of the Proposed Budget for 2011, was postponed because of the insurance discussion.

The next meeting will begin at 6 p.m. at the Sebastian County Courthouse in room 204.