Health insurance premiums rise less than anticipated for county – Piatt County Journal-Republican
MONTICELLO â Despite a high claims year in 2021, Piatt Countyâs health insurance premiums will only rise about 5.5 percent this year.
Nick Hiltbrand of Insure Champaign was pleased with the proposal, which will cost the county an estimated $978,000 over 12 months, up from $932,000 for a coverage year that will end March 1. Thatâs an increase of about $46,000.
It includes a premium credit the insurer will pay the county, lowering the increase about a percentage point from earlier proposals.
âI think thatâs really good for Health Alliance to get us down to that figure with that kind of loss ratio in the claims year. I think that really positions them as a long-term partner for you guys, and says âweâre not going to blast you for one bad year,ââ Hiltbrand told the county board insurance committee on Jan. 19.
Hiltbrand said Health Alliance actually lost about $180,000 on the county over the past year, which included more than $1 million in claims locally. But less claims the previous year helped cover that loss.
âMy recommendation would be to move forward with the renewal rates and premium credit. Thatâs going to lower your overall premium (increase) for the year and get you to around a 5.5 percent increase.â
He said many employers are experiencing double-digit percentage increases, some even up to 20 percent in the health insurance marketplace.
The county switched from a self-insurance plan to Health Alliance in 2020, a move that saved money and increased in-network coverage options for employees.
Blue Cross/Blue Shield was also considered for the coverage year that starts in March. The alternate proposal was actually less â an $836,000 annual cost â than Health Alliance.
Hiltbrand said the positive, besides less cost, is that Blue Cross/Blue Shield allows better access to out-of-state carriers such as Mayo Clinic and Barnes Hospital when needed. The downside is that Carle Clinic physicians are not in-network.
County board member and insurance agent Todd Henricks said that, while Carle Hospital is technically covered by both carriers, Carle doctors are not in network
âIf we would go Blue Cross Select, you have a limited number of doctors. You have to watch out for that, where you go,â Henricks said. âBlue Cross actually participates with Carle Hospital â it is a Blue Cross provider â but Carle physicians are not; they are out of network.â
Hiltbrand also thought Health Allianceâs quote showed a good faith effort toward the county.
âI do think, from a long-term planning standpoint, with the claims year weâve had with Health Alliance, I do think they are showing they want to position Piatt County as a long-term customer. With the claims we had, we could have been looking down the barrel of a 15 or 20-percent increase,â he said.
âOr higher,â Henricks added.
Committee members agreed staying with Health Alliance would also cause less disruption for employees, who after two years are getting used to that insurance provider.
âSwitching insurance companies is never an easy thing to do. I agree that people are just getting used to â after two years â of how to make claims and where they can go, and what they can do. Thatâs why I like Health Alliance. Nothing against Blue Cross/Blue Shield,â committee member Randy Shumard said.
The committee recommended renewing with Health Alliance. The county board will vote on it Feb. 9.
County employees who are on the plan currently pay $158 per month for individual coverage, with the county covering the remainder, about $560 monthly. It was not decided if the employee share will change, although the committee indicated it would look to collective bargaining agreements to help determine a final figure.
Hiltbrand said he was very happy with Principal Insurance, which provides optical, dental and life insurance options for county employees. The county payment will not rise for those in 2022.
Hiltbrand also told the committee that insurance companies are now required to provide up to eight COVID-19 home tests per month for policy holders.
He was also asked to look into syncing health insurance renewals with the calendar year sometime in the future. The county shifted to Health Alliance in March of 2020, so has been renewing at that time each year since.