County saves big on health insurance

DAVE MOSIER/independent editor

The Van Wert County Board of Commissioners got a boost to its financial bottom line with the approval of a new third-party health insurance administrator contract with Gallagher Benefit Services.

Commissioner Thad Lichtensteiger said the county has been looking to move from a five-county consortium that also includes Auglaize, Mercer, Shelby and Hancock counties for at least a couple of years because of the high health care premiums the county has been paying.

“We really just think we’ve been getting a spanking on health insurance the last few years,” Lichtensteiger said, adding that the county had given its one-year notice that it planned to leave the consortium a couple of years ago so it could explore its options on the open market.

However, until this year, Lichtensteiger added, the county, in part due to its aging employee base (only one county employee is under age 40), has not been able to find a better deal than it was getting through the consortium.

That changed, though, with a third-party quote received from Gallagher Benefit Services. Lichtensteiger noted that, under the new plan, which takes effect January 1, 2014, county employees’ deductible would increase $1,500, from $1,000 to $2,500, although the commissioner added that the county would be funding $1,200 of that difference.

In addition to health insurance savings, the county also saved money on the life insurance and dental insurance components of the new benefits package, Lichtensteiger said.

Meanwhile, the cost savings are much needed, since the county is currently showing a $180,000 budget deficit, thanks to a reimbursement of $365,000 still owing to the federal government in connection with sewer projects on U.S. 127 and Ohio 118 south of Van Wert.

Because some paperwork deadlines were not met on those projects several years ago, the U.S. Department of Housing and Urban Development (HUD) has sought repayment of the $365,000 provided by that agency for the sewer projects.

Still pending, though, is the possibility that the county’s risk-management insurer will cover the $365,000 through the county’s errors and omissions insurance.

Documents have been sent to the company detailing the incident, and Lichtensteiger said the county is currently waiting to hear whether the company would cover the loss.