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Wednesday, 06 June 2012 12:42

Haywood County wrangles over health care costs

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Rising health care costs were the catalyst for two budget decisions by Haywood County commissioners, one that will hopefully save taxpayer money and the other a stopgap measure to keep up with employee health insurance.

Commissioners were forced this week to pay an additional $150,000 into the health insurance fund for retired employees who are under 65 — twice what was budgeted.

Commissioners seemed surprised over the increase.

“Should we be concerned about this?” asked Commissioner Kirk Kirkpatrick. “We have a liability, and it is going up. It is more than twice the budgeted amount.”

The rise is due mostly to an increase in the number of retired workers under 65. When the county down-sized its work force during the recession, it offered early retirement options to workers under 65, and so the number of former employees in this category has now risen. The county only pays a portion of the health insurance for employees who retire before 65.

Stamey said the cost for retired employee health insurance would almost certainly continue to rise, however. The county also had to pay an additional $27,000 into the fund for employees over 65.

He hopes switching to almost exclusively generic drugs — unless a brand name is prescribed for medical reasons — could provide huge savings and is working on implementing that change.

Commissioners also voted unanimously to enter into a contract with Southern Health Partners to provide medical care for inmates at the county jail.

This fiscal year, the county will spend an estimated $230,000 on medical care for inmates, from dental work to prescription meds to doctor’s check-ups. By contracting out the lion’s share of inmate health care to a private firm, the county hopes to knock about $25,000 off its costs.

The contract with SHP is $134,888 a year but doesn’t cover everything. In addition to doctor and nurse visits, it only covers the first $30,000 in hospital visits, pharmaceuticals and specialist care. After that amount runs out, the county will be on the hook for whatever additional costs are incurred in those areas.

In addition to the contract with SHP, the county is budgeting another $70,000 for inmate medical care.

Commissioners still hope the contract can save a few dollars.

Haywood’s detention facility averages about 75 inmates a night, and the county is legally obligated to provide medical care for inmates under its watch.

While the coming year’s projected savings are modest, commissioners say the contract should help.

“We all hope this will reduce inmate healthcare costs and provide a solution to overall rising costs,” said Commission Chairman Mark Swanger.

— By Scott McLeod

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