County saves $2.8 million on health insurance premiums

Anderson — Switching insurers to care for employee health could save Madison County $2.8 million next year.

John Gause, president of Apex Benefits, told the Madison County commissioners’ meeting on Tuesday that switching from Anthem to PHCS would cut the county’s total cost of employee health insurance from $12.1 million to $9.3 million. I explained.

Madison County is self-insured, so health insurance covers a portion of your medical costs and covers the rest.

During discussions about the 2023 county budget, Madison County was informed that it would need to increase the General Fund budget by $2 million for a total of $6 million.

Gause said Anthem wants a 29% increase in insurance costs if the county renews the policy.

“We are moving to another provider,” he said. “There will be no cost increases and no changes to employee deductibles and benefits.”

Apex was hired by the County as a third party claims adjuster in September 2021.

Gause said a claim review showed the county owed $957,718 as a result of claims related to COVID-19.

He also said Apex would reduce the amount the county owes for one employee’s medical bills from $1 million to $750,000.

Gause said the problem the county faced was that it hadn’t increased its health insurance budget for several years.

Next year, the County Legislature budgeted $5.4 million for health insurance from the General Fund budget.

“This is a significant savings,” said Commissioner John Richwine.

Director of Human Resources, Beatrice Lamy, encouraged employees to use county clinics.

“It’s important to keep using the clinic,” she said. “It helps keep costs down.”

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