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3% increase: Perry County medical plan outperforms others

Alex Snedeker of Snedeker Risk Management told the Perry County Board Thursday that their partially self-insured health plan outperformed most plans last year.

"Industrywide, the average is seven to 13 percent inflation in medical costs." Snedeker said. "Perry County saw a three percent increase between 2012 and 2013."

He pointed out that during that time, the number of persons insured increased, as well.

Overall, the county spent $908,875 in 2012 and $942,108 in 2013, in health claims and fixed costs. There was an average of 114.4 employees and families on the plan in 2012 and an average of 116.2 employees and families on the plan in 2013. The actual census fluctuated from month to month.

Perry County pays the medical claims up front then waits for reimbursement from Symetra reinsurance on any amounts that exceed the deductible for each employee. It takes about three months for each claim to be processed. However, it can take longer.

Snedeker was pleased with the results from 2013 and pointed out that five or six years ago, the county was spending more than $1 million on health insurance.

He said he will continue to work with the county to plan for the future. He believes the Affordable Care Act will require the county to offer open enrollment once a year within 90 days of the first of the year. Snedeker expects Perry County's open enrollment to be held in October. Snedeker Risk Management's legal advisor will speak to the county about open enrollment before then.

So far in 2014, the county has paid $340,000 in health claims. That is nearly half of the amount budgeted for health claims. The fiscal year began in December. Health claims contributed to the need for a second tax anticipation warrant last week, Treasurer Bill Taylor said. Other factors include decreased revenue and some large, once-a-year payments to software vendors.

Taylor said the county is having cash flow difficulties. At Thursday's meeting, the board agreed to borrow $200,000 from First National Bank in Pinckneyville at 1.4 percent interest. That was the second $200,000 loan this fiscal year.

Snedeker said that the trend in health costs is to decrease in the middle of the year. Perry County saw much smaller claims in May and June of 2012 and 2013 than in the other months. However, April was a high-claim month in both years.

In other business, the board:

• approved special use permits for Michael and Kirstin Huggins to place a new 2012 mobile home at 5394 Waterway Drive to replace a home that burned in February and for Perry County Counseling Inc. to renovate a 5,000 square foot property at 8271 East Jackson St. The property will be used as a residence for eight clients with mobility issues. There will be no smoking or alcohol on the property and no former offenders or sexual predators may live there.

• passed a resolution approving a contract with William Kelley for mosquito abatement for the year. The cost is $8,800.

• passed a resolution renewing an agreement with the Southern Illinois Board of Tourism which allows Perry County to appoint members to represent local communities which are members of the bureau. The rules governing the tourism bureau require that all appointments be made by a county board. The county does not have a tourism committee. However, both Pinckneyville and Du Quoin are members of the bureau. There is no cost to the county.

•n passed a resolution making it mandatory for both the County Treasurer and County Clerk to sign checks on all General Fund accounts. Taylor said the resolution allows County Clerk Josh Gross to be added as a signatory to the accounts held at Du Quoin State Bank. The accounts at other local banks have already been changed to include Gross. The auditors requested that all accounts require two signatures.

• re-appointed Byron Stricker to the Tamaroa Community Fire Protection District for a term to expire April 30, 2017.

• approved raffle licenses for Bethel Youth Group and the Knights of Columbus/Columbian Club.

• agreed to hear more about PRO ACT, a pharmacy benefit management company. Gross told the board that the company will send a card to every legal resident in Perry County. The card provides a 25 to 80 percent discount on drugs. However, it cannot be used in conjunction with any other drug insurance card. There is no cost to the county. PRO ACT receives a fee from each transaction, much like a credit card company. Gross will invite a representative from the company to address the County Board at a future meeting.

• heard from County Engineer Brian Otten that a hearing on the closure of Harsy Road will be held at 10 a.m. on April 17. Most of the road is in Vergennes and is maintained by Jackson County. Though Perry County does no maintenance on the road, a portion of the road is in Perry County. Therefore, a hearing must be held here, as well. The road closure is part of a mine expansion.