Friday, June 02, 2006
COUNTY -- Shelby County's health insurance premiums are up 9.4 percent next year, but officials are happy that the rate hike isn't higher considering the county's loss ratio
The Shelby County Board of Supervisors accepted last week a health insurance renewal for the 2006-07 fiscal years with Principal Financial. Randy Arnold, the county's insurance representative, called the 9.4 percent rate increase that amounts to a $70,388 increase in premiums next year, a good rate. Monthly premiums for the county's health insurance plan would increase from $55,000 to $60,949 next year.
In total, the county would pay $731,388 in health insurance premiums in 2006-07.
Arnold called the rate augment the best scenario for the county, as last year health insurance claims paid out exceed premiums paid. The loss ratio was at 104 percent of premium, not considering administration fees.
A check of comparable plans with a variety of companies yielded no cheaper rates. In fact, United Health Care, Mutual of Omaha and American Community declined to present bids. A bid from Well mark Blue Cross/Blue Shield was higher than the Principal renewal by nearly $5,000 per month.
"Companies were not spirited because of the loss ratios," said Arnold.
posted by kanth
@ 2:06 AM
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