County sees decline in health-cost reimbursements

Fewer Dyer County employees have sought reimbursement for health costs this year than during the previous period last year.

The Dyer County Commission's Insurance Committee learned Tuesday that the county had spent $39,060.38 from its health reimbursement account (HRA) between July 1 and Dec. 31, 2009. It spent $52,357.57 during the same time period in 2008.

The county established the HRA in 2006 when it raised the employees' health insurance deductible from $500 to $750. The account covers most of the increase for employees.

Shelia Gurien, who oversees the county's HRA at White & Associates, said the last two quarters of the fiscal year (January through June) usually have the highest number of claims. Still, she said, claims are "going well."

The county employs 156 persons who are eligible for health insurance coverage. Of those, 135 participate in the group insurance plan. Total enrollment, including dependents, is 235 persons.

Gurien also keeps track of the county's flexible spending account (FSA) enrollment. FSAs allow employees to set aside a specified amount of money, for health expenses. The money, which is not taxed, is placed in an account until the employee incurs medical costs. This year, she said, 66 county employees are contributing a total of $77,220 to their accounts.

County Commissioner John Flatt said he was surprised that only 66 persons are participating in the FSA program.

Gurien said enrollment this year is lower than it was the previous year.

Costs for renewing the county's health insurance plan will be available in late April, she said.

The committee then moved on to the dental, vision and life insurance policies offered to employees.

Jerry Willoughby of Willoughby Insurance Agency in Dyersburg said about 95 percent of the employees are participating in the dental plan, about 80 percent are in the vision plan and about 75 percent participate in the life insurance plan.

By switching from Guardian to Blue Cross/Blue Shield of Tennessee plans, the county held the employees' costs steady on the dental plan and reduced them on the vision plan, Willoughby said. All Dyersburg dentists are also part of a network that provides county employees with a 20 percent discount. The rates have been guaranteed for two years. The plans are open to all full-time employees.

Dale Petty and Jason Bell, both of Liberty National Life Insurance Company, asked the committee to consider offering a group term life insurance policy that employees may continue using after retirement. The county's current life insurance policy stops when employees retire or otherwise leave county employment.

Bell said a high percentage of people get nothing from their life insurance because it ends when they stop working. The average life expectancy is 78 or 79, well past the retirement age.

The Liberty National plan allows employees to purchase $5,000 to $100,000 worth of term life coverage. While the policy is offered only to groups of employees, employers do not share in the costs. Some employees may not be accepted into the plan, he said.

County Commissioner Alan Burchfiel, chairman of the insurance committee, said that's "something we can think about."

Flatt noted that the county had already locked in a life insurance program through 2011.

"I don't like piggy backing on another life insurance program," Flatt said. "We could have some people drop out of the life insurance we're offering and that could affect the package we have."

Willoughby worried that it might be confusing if the county offered two life insurance plans.

Ron Switzer of Bradshaw Insurance said he did not have the current figures for the county's occupational accident, or workman's compensation, plan. He promised to provide them to the committee when they are available.