ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Wednesday, June 5, 1996 TAG: 9606050055
SECTION: VIRGINIA PAGE: C-1 EDITION: METRO
SOURCE: RICHARD FOSTER STAFF WRITER
Starting in July, health insurance costs for Bedford County employees could increase as much as 36 percent. That would mean smaller paychecks - as much as $173 less a month for employees with family coverage.
But that will happen only if the county School Board decides not to enter into a joint health insurance policy with the county; so far, it hasn't made a decision.
If the School Board does join the county, health insurance costs for county employees would jump only 16 percent, according to County Administrator Bill Rolfe.
"This is nothing new," Rolfe said. "For the past four years, health insurance has been a real bear for us."
The most recent health insurance crisis for county employees started about a month ago when the county's current provider, Trigon Blue Cross Blue Shield, announced it would raise the county's rates 60 percent.
Trigon said county health insurance claims have exceeded premiums in recent years because an unusual number of employees have had serious, expensive illnesses such as cancer and heart disease, Rolfe said.
Because the 60 percent increase was unacceptable, the Board of Supervisors voted last week to obtain less expensive insurance through the Virginia Association of Counties.
The health insurance will be provided by Mid-Atlantic Medical Services Inc.
Last year, the county school system went in on a joint policy with the county government, but declined to do so this year because Trigon would have raised the school system's rates, too.
The School Board will discuss health insurance with the Board of Supervisors on Monday night.
School Board member Betty Earle said it's still possible the School Board could join the county in the Virginia Association of Counties' plan.
Under that plan, Rolfe said, school system employees would actually see a 7 percent decrease in their out-of-pocket health insurance costs.
Out of 250 county government employees, 170 are on the county health plan. The majority of those employees pay for employee-only coverage, and if the school system doesn't join the county, they could see a $45-a-month increase - from $65 to $110. That's $540 more a year.
County employees with family coverage would see the biggest increases - their insurance costs would go from $316 a month to $489, an additional $2,076 per year.
A county employee paying for insurance for himself and a child could pay $68 more a month, raising the monthly health insurance cost from $137 to $205; monthly insurance rates for a county employee and spouse could go up $141, from $312 to $453.
On top of the county employees' out-of-pocket costs, Bedford County now pays about $130 a month in health care costs for each employee; the Board of Supervisors voted last week to approve spending an additional $18 a month for each employee's insurance.
The possibility of the 36 percent increase is "disheartening," said Sheriff's Deputy Mike Miller, who is on a county employee insurance committee examining the issue.
Starting deputies, who make $20,020, would pay almost $6,000 a year in health insurance under the family insurance plan.
That would reduce their income to $14,000 - before state and federal taxes, Social Security or retirement savings were deducted.
"It's disheartening, because we've got some deputies right now that work off-duty for the Sheriff's Office just to pay their insurance," Miller said, "and I know if it goes that high, some of those deputies will be looking for other jobs."
Miller's committee is trying to come up with ways to reduce the health insurance cost for employees. One recommendation Miller makes is that the county spend more per employee than the $148 a month approved by the supervisors.
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