Just came back from the above 9a meeting. May I take a moment to say I am very tired of my Supervisor's ridiculous reasoning during these meetings. My mother used to tell me that if I was ignorant about a subject to keep my mouth shut rather then open it and remove all doubt. Beat #2, we deserve better then this. Let's work together and find someone who will help with the changes we need to make in our County. For those of you who have supported Burnett in the past because he is your long time friend, please come to the meetings and watch the result of your vote.
Now, onto what went on in the meeting. The agenda item was to "consider health Insurance waiting period for new employees - 30 days waiting period (insurance becomes effective the 1st day of the month after the waiting period)".
The information I was handed in writing appears below:
"The disadvantage and advantage of having a waiting period plays a part in what rate the group could get. For example, if you choose ZERO day waiting period, your plan rate may have (a) 5% to 25% increase vs (a)90 day waiting period. The lower the waiting period the higher your rate could be vs the higher the waiting period, the lower the rate could be. Most Counties do have a 90 day waiting period, such as Jasper County, Claiborne county, and Jefferson County to name a few.
Having (a) ZERO day waiting period is a major risk for the group because it is putting the whole group at risk for a higher rate. Example, if a member has been with the group for 10 years and did not use the claims and the group hires a new employee that has major medical claims; the group's liability will increase because of the new employee that has major medical claims; the group's liability will increase because of the new employee's outrageous claim usage. That is not fair to employees that have been there for 10 years becuase now the rate just increased.
When insurance companies rate a group based on risk factor(s) they look at average age, gender, height and weight, and waiting period to quote the group premiums.
(The) Tunica County Board of Supervisors use to have a self funded plan, therefore all the liability was on the County.
Self Funded Plan:
(In a self funded plan the liability) falls onto the employer. Therefore, the employer can choose whether to have (a) waiting period or not. Claims will come out of the group escrow account. Liability is always higher because they take on all risks.
Example: Employee hired and insured (on the) same day (means the) employer will run into a possibility of (the new) employee being (previously) sick... (The) county takes on...(this)... liability immediately.
Fully Funded Plan:
(In a fully funded plan liability) is paid for by the insurance company. Therefore, (the insurance company puts in) a waiting period...to protet the employer. Liability is on insurance company and not (on) the employer. (Better) rates for renewal.
30/60/90 Day waiting period
(Rate Risk) Factor:
0 day waiting period - Very High
30 day waiting period - High
60 day waiting period - Average
90 day waiting period - Lower"
The BOS voted to amend the employee handbook to reflect their concensus to be fair to new and present employees and to save the County money. After the motion was made and a vote taken, Burnett arrived at the meeting. Burnett started with his ridiculous statements which necessitated the County Administrator and the Chancery Clerk to repeat to him what had already been cleared from the agenda.
Blogger's note: Look to the ACA (Obamacare) for portability and other benefits for transitioning employees.
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