During last Thursday evening’s Genoa Township Board of Trustees meeting, Genoa Director of Human Resources and Community Relations Linda Greco presented the trustees with an employee healthy insurance renewal package.
In chambers with Greco was Genoa’s health insurance broker Tom Hedge of HR Butler.
Greco noted that HR Butler has brokered the township’s health insurance for the past eight years. Eight years ago Hedge introduced the Health Savings Account (HSA) option to employees.
With an HSA employees receive money up front in their own HSA accounts to spend on medical deductibles, and unspent money can follow them into retirement for health care costs. The HSA concept was designed to engage employees in the health care spending process, and also lower employer insurance costs.
“Last year we went with a CIGNA hybrid, but buried within it was a lot of administrative costs,” Greco said. “This year we want to go with American Fidelity Medical Mutual of Ohio with Benefits Assistance Corporation as the Third-Party Administrator (TPA).”
Under the new insurance plan single employees would receive $1,100 and employees with families would receive $2,200 in their HSA accounts. Out-of-pocket costs for single employees would be $700 and $1,400 for families. Participating in a wellness program could lower employee out-of-pocket costs to $200 single and $400 family, Greco said.
“The TPA places the claims, the doughnut hole makes employees a more engaged health care consumer,” Hedge added. “You lower your claims by putting a little bit of exposure on your employees.”
Hedge said Genoa’s cost would be 2.32 percent lower than last year’s Cigna hybrid health insurance plan. The plan also includes about $600,000 in claims funding, with 100 percent of unused claims funding returned to the township at the end of the one-year plan.
The trustees approved the move to the BAC TPA American Fidelity Medical Mutual of Ohio plan effective July 1. The plan’s base premium is $385,597, with an additional $836,076 put into an initial claim pre-fund.
Greco said the plan cost and claim prefund, plus additional fees total $1,423,469, with the return of unused claim funding significantly lowering that number.
“What it comes down to is, we’re partially self-funded,” Greco said. “Bottom line, that’s less than the total costs for last year.”
Reporter Lenny C. Lepola can be reached at 614-266-6093