Commissioners canceled the county’s multi-million dollar employee health insurance contract Thursday with United Health Care, opting to return to the more expensive Medical Mutual.

Monday, August 21, 2000

Commissioners canceled the county’s multi-million dollar employee health insurance contract Thursday with United Health Care, opting to return to the more expensive Medical Mutual.

The county will divide extra costs among officeholders and government departments, commissioners said.

And, the move has county employees smiling, American Federation of County, State and Municipal Employees Local 3319 president Diane Gettys said.

The union had filed a grievance, saying the plan was not the same or better than the old plan – a requirement of the union’s contract.

Employees were relieved that insurance will return to medical mutual and the union will likely drop the grievance, Mrs. Gettys said.

"We’re happy they listened to our concerns," she said. "What we’ll get will be more comparable but we haven’t seen the policy."

Commissioners based their decision on dozens of employee complaints that the new insurer did not provide adequate coverage.

"I was not satisfied with it," commissioner Paul Herrell said. "Employees had legitimate complaints and did not receive sufficient answers."

Complaints included concerns that not all area hospitals were included in United Health’s insurance plan, not all doctors would accept the insurance and the prescription card would not cover many medications employees needed, Herrell said.

United Health scheduled meetings every other week to hear complaints, in an attempt to remedy the situation, but it became apparent that was not working, Herrell said.

"Based upon the number of calls and letters I know each of us had on this issue, it’s incumbent upon us to take this action on behalf of the employees," commission president Bruce Trent said.

Medical Mutual will provide insurance at the price it quoted during bidding this spring – about $274,000 more than United Health’s plan, and about $400,000 more than coverage the county had last year.

The extra premium cost of Medical Mutual will not be borne solely by the commission’s general fund. At least one agency, the Department of Job and Family Services, pays 100 percent of insurance premiums for more than 130 employee policies.

Commissioners passed a resolution Thursday that allows the county to bypass competitive bidding and return the insurance contract to Medical Mutual, because any delay would drive costs up further, they said.

Commissioner George Patterson, who voted against the original United Health contract, said the action was the right decision for employees but voted no on Thursday’s issue.

"I’m supportive of the action as far as insurance is concerned but I’m just not supportive of the carrier concerned," Patterson said.

The carrier selling the insurance, McNelly-Patrick and Associates, will not change, said Les York, the commission’s consultant who researched policies earlier this year.

York called switching insurance companies a financially bad move, saying the United Health Care plan would have worked given time.

Commissioners also said the county’s budget would force them to apply insurance cost increases across the board.

"Our general fund cannot absorb any increase now so we will have to divide it," Trent said.

Officeholders and department heads joined employees in signing a petition that called for the county to switch insurance polices, so every office should be willing to help pay, Herrell said.