BCBS agent discusses county health insurance
Tim Oglesby of Blue Cross/Blue Shield Insurance, met with Marion County Commissioners Monday to present quotes on a health insurance renewal policy for county workers.
Oglesby recommended an increase in deductibles from $250 to $500. At that rate, the total premium would be 16 percent higher than the previous year.
Oglesby, who lives near Buhler, shared his concerns regarding the continuous up-tick in premiums.
"I've not seen it like this in 20 years," he said. "I'm most concerned about small businesses in Kansas They're taking it on the chin."
Oglesby speculated that, if prices don't stabilize in two or three years, the system may break down.
"We're hitting this brick wall of unaffordability," he said. "I'm not sure what would turn it around."
He noted that Blue Cross/Blue Shield underwrites 48 percent of the policies in Kansas. He said 66,000 enrollees in Blue Cross/Blue Shield have dropped out during the past four months. He said many people are dropping family coverage and retaining single coverage.
Small businesses are having to downgrade benefits just to afford it, he added: "We're hitting their bottom line."
He warned that the trend could cause a huge increase in indigent care if it continues: "If something isn't done, we may end up with a big old Medicare system, and I don't think we want that."
He said when health insurance first came on the scene it provided hospitalization, and that's all. Now many policies cover routine things, as well.
Oglesby places some of the blame for the current crisis in health care on insurance companies. He said insurers insulate their clients from costs. For instance, patients don't realize that an MRI can cost $1,200 compared to $85 for an x-ray.
At the same time, he said, doctors are practicing defensive medicine, calling for expensive tests to guard against possible malpractice claims.
Oglesby said doctors, insurance companies, and lawyers need to get together to talk about needed changes. He supports President George Bush's call for tort reform.
"We need some common sense," he said.
He suggested that, as benefits such as co-pay office visits and prescription drug benefits are cut and deductibles rise, people may be forced to resort to old-fashioned remedies and concentrate on being more healthy.
Oglesby recommended an increase in the deductible on county workers' policies from $250 to $500. With the increased deductible, insurance premiums will rise 16 percent.
He said a $1,000 deductible is likely in the near future but increasing it gradually might be better for employees' morale.
He said the policy still is a good policy. It provides co-pay on doctors' office visits, $300 in x-ray costs, and 100 percent of costs in non-work-related accidents.
According to county clerk Carol Maggard, the county budgeted for a 15 percent increase in health insurance premiums.
Commissioner Leroy Wetta noted that, under the current proposal, the one percent in unbudgeted premium costs would have to be absorbed by lower pay raises in June, approximately one-third less than budgeted.
"Who gets the benefit? That is the question," he said. "Are we insuring a catastrophe or are we ensuring a lifestyle?"
Commissioner Howard Collett suggested that an increase in deductibles to $1,000 would be a way of teaching employees to educate themselves about health care and its costs.
Commissioners asked Oglesby to check into premium costs if the deductible were raised to $1,000.
The issue will be on the agenda at Monday's meeting.
In a related matter, Oglesby explained that people who have BCBS policies and use Via Christi hospitals in Wichita for treatment need to contact hospital officials prior to treatment to ensure that they will accept payments from BCBS. He said Via Christi is a competitor in health insurance.
He also noted that specialized hospitals do not accept insurance write-offs, so people could be billed for those amounts.
Other business
Commissioners approved a $2,700 contract with Bucher and Willis to make changes in the county comprehensive plan, to take an estimated six months.
A second agreement concerning rewriting of zoning regulations remains under review.
Zoning commissioner David Brazil said he would like to see the comprehensive plan in place by the time the moratorium on wind farms runs out.
Commissioners approved $100 for administration of the Cafeteria Plan (fringe benefits).
They reviewed March budget reports. Cash on hand March 31 totaled $6,763,647, including $1,944,291.90 in the county's general fund.
Fuel bids accepted from Cooperative Grain and Supply totaled $8,609. The other bid was from Cardie Oil, a total of $8,612, including a cash discount.
Jim Herzet of the road and bridge department reported that the county received 800-1,000 ton of millings and 1,500 ton of rock from the K-150 project.
Brazil reported that a sign stating solid waste rates is being constructed and will be placed at the transfer station.
Commissioners signed a formal statement proclaiming April as "Fair Housing Month." The full proclamation is published in the legals section of this newspaper.
Collett made and commissioners approved a motion to endorse and proclaim April 22 to be observed as Earth Day in Marion County.
The meeting was adjourned at 10:45 a.m.
