Sebastian County approves new health insurance plan

story by Aric Mitchell
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Sebastian County Quorum Court members approved a health insurance plan and a number of budget deductions Tuesday night for the coming year. The self-insured plan which was debated last week won approval, though not before going through a few changes.

Following a Dec. 1 memo that was circulated to members of the court, a nearly $3 million-funded plan was slashed to approximately $2.5 million with reserve funds in excess of $429,000 serving as risk management for the first year of the plan. The court holds open the option of adding an ongoing reserve to the budget in coming years following 2011.

The $429,000 is considered reserve funding in the event that first year claims exceed the budgeted total. A $60,000 reinsurance plan will also be in effect for participants in the health plan. Should an employee choose to opt out, a terminal liability option is included so that any existing claims will be covered upon departure.

The plan presented at the start of Tuesday’s meeting was a 33% increase for family plans from the existing totals. However, Linda Murry’s suggestion to use a $429,000 fund reserved for health insurance matters in lieu of funding a 25% reserve won support though the final motion had its detractors.

Among the 3 “no” votes were Murry, Lee Webb, and Shawn Looper. “Yes” votes won out with Don Carter, Leo Faulkner, Bob Schwartz, Ray Stewart, Tom Craft, Paul Rivaldo, Lisa Sellers, and Shaun Weidman voicing approval.

Exact costs on a family plan will be readjusted based on the motion to use existing monies for the 25% reserve. However, an increase is inevitable as it would have been with a fully insured plan.

Before readjustments are made, the monthly total premium for a family with a $2,500 deductible under a fully insured plan would be $582.41. The self-insured plan would be $775.24. For an employee only, the fully insured option totals $258.85, while the self-insured option comes in at $322.50. (These numbers are not actual out-of-pocket expenses for the employee, but the combination of employee payments and Sebastian County contributions, which currently total 70%.)

Other matters discussed at the meeting included final approval of the 2011 budget, which passed with the following changes:
• Two requested temporary positions funded in the proposed 2011 budget were eliminated by a vote of 6-5.
• One requested part-time position funded in the proposed 2011 budget was eliminated by a vote of 8-3.
• Sixteen requested full-time positions, including 8 detention deputies were eliminated by a unanimous vote.
• Requested salary exceptions for the County Clerk/Recorder Office, County Judge Office, Golf Course Reorganization, Treasury/Collector, and Prosecuting Attorney Office were defeated by a vote of 8-3.

Speaking his disapproval for the requested positions, Shawn Looper said, “I’m bothered by the fact that we’re adding new positions when we’re not funding our patrol cars.”

Looper said he was sure the requested salary exceptions were deserved, but “at this time, we have to focus on our priorities (to balance the budget).” The majority agreed in both cases.

Prior to the alterations, $1,866,045 in deductions were included in the proposal. Final approval combines this number with funds saved from the above deductions, and also results in completion of the quorum court’s goal to balance the 2011 budget.