Local News

Upshur Commission votes to raise employees’ health deductible

BUCKHANNON -- Faced with rising health insurance costs, the Upshur County Commission has voted 2-1 to raise the deductible for its employees' health insurance effective July 1, 2019.

The change from $250 to $500 for single coverage and $500 to $1,000 for family coverage is projected to save between $39,892 and $77,200 a year to the commission's health insurance plan.

County administrator Carrie Wallace said EBSO gave the commission three options they could make changes to - either in deductible, insurance coverage or the maximum out-of-pocket for policy holders. She recommended against changing the co-insurance or the employee contribution but noted that the deductibles were well below the national average. Nationally, deductibles average $1,312 for single coverage and $4,463 for family coverage.

"I respect the fact that this is a very hard decision for you three to make," she said. "My one recommendation if you are going to make a change, I would try not to change an employees' monthly contribution that they make so they are still able to take that money home in their paycheck."

So far this fiscal year, the county has spent $1.488 million from July 1 to March 31 in medical, prescription and HRA claims, according to county clerk Carol Smith.

Commission president Sam Nolte said that five years ago, the county was spending just over $500,000.

Smith said, "Your medical claims alone from 2015 were just shy of $377,000."

That number didn't include prescription and HRA claims. As of March 31, just the medical claims are $1.108 million.

Commissioner Terry Cutright said, "If we don't make little changes each year, somewhere down the road we are going to make a big change all at once and I think that will be harder for the employees."

Cutright moved to increase the deductible from $250 to $500 for single coverage and $500 to $1,000 for family coverage. This will include spouse and/or children. Also, any one person within the family only has to meet the single deductible to be covered moving forward.

Commissioner Kristi Tenney said, "Unfortunately, health care costs have really went up so much and it's killing us along with a lot of other people."

However, the first-year commissioner said she would rather see the change not take effect until July 1, 2020 to give county employees more time to prepare for the change.

Cutright said, "Kristi, I know you would and this is your first year with it but we've been trying to keep it down for three years. I don't think it's good to the employee to move down the road and then all of a sudden instead of a $500 [deductible increase], we move to a $1,000 or $2,000."

Nolte said he agreed with Cutright.

"When you look at the increases over the past five years I feel we have put ourselves behind the eight ball a little bit by waiting too long to make the changes," Nolte said. "Now, you've went from a half a million in expense to the county to over $1.5 million and we have had very minimal changes. I will second your motion."

Nolte and Cutright voted in favor of the deductible increase with Tenney voting no.

Afterwards, Nolte said, "Health insurance costs as a whole nationwide have been on the rise for several years. We have tried to make changes over the last couple of years to offset a little bit and we try to do what we can that least affects the employees. We really don't want to raise what is deducted out of the employee's paycheck. The rate is very reasonable. For a family, it's $50 a month. Our insurance is excellent. Our employees have very good benefits."

Wallace said that under the current health care coverage, employees can choose from four different tiers.

For single coverage, the commission pays a $8,900 annual premium; for employee children, it pays $14,700 annually; for employee spouse it is $17,000 annually and family coverage is $23,000 annually.

The Upshur County Commission was a founding member of the West Virginia Counties Risk Pool which is self-funded.

"Our amount that is funded each year fluctuates along with claims activity," she said. "So the actual amount that is paid can be very different than those numbers."

The commission also offers a flexible spending account through American Fidelity that would allow employees to put money towards their deductible.

Wallace said some employers are starting to offer different wage rates depending on whether or not the employee uses their insurance.

However, she said with self-insurance, "If you limit your pool, that is a very dangerous position that you put yourself in."

Smith said, "I told [Wallace] I really don't think that is a good option for us because we need people in our plan contributing to the premium otherwise we wouldn't have enough money to make the payments."

Brian Farkas, executive director of the West Virginia Conservation Agency, came to commission to discuss changes in the agreement used to provide financial support for the Pecks Run Watershed.

The agency has had an agreement with the Upshur County Commission since 2000 in which the UCC provides $3,900 each year for operation and maintenance of the channel.

After county commissions around the state began questioning the validity of these long-standing agreements, Farkas said he talked to the West Virginia Attorney General's office who agreed that the ongoing financial commitment could not be done.

"From now on, we need to enter into annual agreements," Farkas said. "We would agree to give the money to the Tygart Valley Conservation District so it could oversee the operation and maintenance of the channel in Upshur County."

The channel was built in 1963 and needs about $11,000 of maintenance soon, according to Farkas.

"There was a culvert installed in construction which used material that was designed for 25 years usage. Fifth-six years later it is rusting," he said.

The agreement is a $1 per $1 match but also means that the commission could reduce their contribution if funding was an issue.

"It provides you and me an escape clause," he said. "The other agreements did not have an escape clause. This agreement says if you do not have the money, you do not have to pay and if we don't have the money, we don't have to pay."

Farkas thanked the commission for their ongoing support and reminded them that it is the authority of counties and municipalities to treat streams to prevent floods.

"Flooding is a very serious issue in the state of West Virginia," he said.

Farkas introduced Ed Martin, manager of the northern half of the state for the watershed association.

"It is Ed and his staff who actually work in this county related to Pecks Run and any other issues that come up stream related, flood related in your county," Farkas said.

Nolte asked Wallace to put the agreement on a future agenda.