Council wants to see if employees will accept insurance buyout

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April 8, 2008

By Nate Smith, Staff Writer The Washington Times-Herald Tue Apr 08, 2008, 10:38 AM EDT

SHOALS — The Martin County Council decided to see Monday if any of the 57 county employees would be willing to take a buyout from the county’s insurance policy.

An informal survey, to be distributed with employee paychecks, will ask employees if they would take a cash payment up to $3,500 rather than have health insurance.

The “buyout” policy, the idea of council members John Stoll and Richard Summers along with the blessing of the commissioners, would save the county up to $8,000 per employee if they do not take the insurance.

“A thing to think about is how much they are saving the county,” Stoll said. “If (the employee) took the insurance, we would have to pay close to $12,000 per person.”

The $3,500 is the amount the county pays for a family policy in a health savings account.

At the commissioner’s request, Stoll met with the county’s insurance provider, Pekin Insurance. The buyout policy can be installed into the county’s insurance plan in 2009.

With some of the legalities out of the way, the question Monday became whether any county employee would take the buyout. Commissioner Kevin Boyd, who was in the audience for another matter, said there would be few who wouldn’t because the payout is too low.

“If they don’t have more incentive, they are going to keep the insurance too,” Boyd said.

Boyd said the $3,500 the county spends for an employee’s health savings account would become a secondary form of health insurance to pay medical bills. Federal law says that health savings money can be held tax free if that money pays for health costs. If a person wishes to use that money elsewhere, they would have to pay a penalty and would later be taxed on the money.

Council member Randy Wininger worried that premiums could go up.

“My gut feeling is this would make premiums skyrocket,” Wininger said.

Deadline for the surveys would be before the summer, when the council will start work on the 2009 budget. The insurance will be up for renewal at the end of the year.

In other business

ADDITIONAL

APPROPRIATIONS

The council approved three additional appropriations Monday. The first, $700, was for First Responder training for members of the Lost River Volunteer Fire Department. The training will give them the ability to help with medical emergencies before the county’s ambulance arrives from Loogootee.

The second, $500, was with Purdue University for its extension agent contract. When the council approved a 3 percent raise for all employees last year, the raise was not figured into extension agent Jonathan Stevens’ contract.

The final appropriation was for $50,000 for the highway department in gravel. County Highway Superintendent Darrell Courtright said most of the budgeted $100,000 in rock has been spent to prevent washouts on county roads. About $28,000 is left for the year, according to Courtright.

All three appropriations were passed by unanimous votes.

FIRE TRUCK

County Civil Defense Superintendent Monty Wolf informed the council that to receive a new fire truck the county received a $150,000 grant for, they would have to pay $61,840, almost $40,000 more than originally planned.

To proceed with the grant, Wolf secured a verbal commitment from the council that they understood the costs. Two bids for the fire truck were opened at the commissioners’ meeting last week. Although a formal decision has not been made, Wolf discussed the funding for a $221,533 truck from Crimson Fire.

The truck, made from stainless steel, will not be housed in Mitcheltree Township, as previously thought. Instead, the truck will be housed in a central location in the county.

“It was labeled the Mitcheltree truck, but it will be owned by the county,” Wolf said. “The county commissioners can choose wherever they want the truck.”

DEPUTY PAY

Sheriff Tony Dant asked the council to approve funding to pay for overtime he is asking his deputies to fill.

Because of a leave of absence of a deputy, the department is having trouble keeping at least one deputy on the streets 24 hours a day while filling requests for days off or deputies using compensation time.

The council accepted the request and would use funds left over from the absent deputy’s wages to pay for the overtime.

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