Commission Eyes Changes For Dependents On County Insurance

TUSCALOOSA, AL. — The Tuscaloosa County Commission hopes to implement adjustments to insurance plans for the families of deceased county employees following continued discussions during its regular meeting Wednesday.

County Administrator Melvin Vines explained that under the county's current policy, dependents of deceased retired county employees are typically allowed to remain on the deceased employee's insurance for about a month, sometimes longer, before having to find their own coverage.

In discussions regarding changing that policy, Vines also pointed out that the same approach applies to active employees. The proposed adjustments, which are still in the early phases of discussion and subject to further change, could see the dependent allowed to stay on the policy by paying a deposit premium and ongoing monthly payments, as opposed to being outright removed after a certain period of time.

"If the employee's sponsor passes away, dependents of active employees or the retired employee have to find their own insurance in a reasonable period of time," Vines said.

In taking the approach, it would offer the same level of coverage at no cost to the county, because the costs would be covered in full by the policy holder. For example, a family plan under the county's policy for families currently carries a monthly premium of $100 for the employee, while the county picks up the additionally $1,400.

Although the costs will be substantially higher for the spouse or dependent of a deceased employee, the option will still be available for those family members.

Vines then said there had been some past thought given to benchmarking the cost of allowing a dependent to stay on and what the assumed cost for the county is. With respect to its insurance, Tuscaloosa County is a self-insured entity that allocates money into a fund out of which Blue Cross plays its health insurance cost.

"The deposit premium for that fund is $700 a month for single contract and $1,500 a month for a family contract," he said. "Those amounts for deposit premiums have been carrying the account, so I think that's the best approximation that we can arrive at in terms of what it would cost the county to keep these dependents on and if they are required to pay full cost, that would be the amount we would assume would be full cost to the county."

As it stands, Vines explained that a current employee who retires and wants to keep a spouse on their insurance costs the county $309 a month. When the spouse becomes Medicare eligible, that cost is cut in half.

District 3 Commissioner Mark Nelson, who joined his colleagues in showing support for the changes, did pose a question concerning the permissibility of the changes from an administration standpoint with the county's provider.

Vines answered by saying the county vetted the proposed changes with Blue Cross, with the provider finding no impediments so long as the coverage is offered to all county employees on the same basis.

"I think it’d be a great benefit for our employees and gives people who have been in a real bad situation an option," Nelson commented. "It gives them an option they may not be able to afford to take, but gives them an option nonetheless. And if we’re doing what we're talking about, it's cost neutral to the county, while still giving benefits to employee's family."

Nelson reiterated the importance of offering options as opposed to nothing, saying that while a $1,500 deposit premium for a family is not "chump change," it is a better deal compared to current market costs for equivalent coverage and can temporarily help someone in a tight financial spot.

To Nelson's point, District 1 Commissioner Stan Acker also mentioned the importance of explaining life insurance to county employees and the benefits they receive from the Retirement Systems of Alabama (RSA).

"If those proceeds [from a life insurance policy] have to be used to cover your insurance for the next year, you are going to have some money to do that with and it gives time," Acker explained. "Obviously, in a crisis like that, I can just imagine discovering after a spouse passes away or whoever, to be told in addition to all the other things you’re facing, you have to be off the insurance … whether it's 30 days, 40 days [to stay on the deceased employee's insurance], it's a very short time period."

Commissioners, while appearing to be in unanimous agreement, decided it would be best to form a comprehensive policy bullet-pointing the finer aspects of its adjusted approach to employee insurance before casting a formal vote.

"It’s got to be right to start with or it's going to be a mess at the end," Vines cautioned.

Probate Judge and Commission Chair Rob Robertson also voiced his support for hammering out a plan with the hopes of it passing before the end of the year and going into effect on Jan. 1, 2021.

"We need to develop a model policy to bring forward for consideration," he said. "Right now, there are a lot of these questions that need to be clear: this is eligibility, this is how it would work. It could be tweaked, but I think we will have to do that [plan] as a starting point."

Acker then proposed having a formulated plan ready for consideration during the Commission's one meeting in November, to give officials time to make any changes before it would go into effect.

The Tuscaloosa County Commission's next regular meeting is set for Wednesday, Oct. 21.

IN OTHER BUSINESS

• Commissioners voted unanimously at the request of District 3's Nelson to provide $2,900 in Community Development funds to PARA to repair the lights on the Hillcrest softball fields at Englewood Elementary.