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In an effort to trim spending on employee health care, Allen County government is paying more for perks like gym memberships and weight loss programs.
The county commissioners are trying to reduce health care costs by focusing on improving employees’ health and preventive care – an effort that won’t cut costs overnight.
Last year, Allen County, which is self-insured, spent $11.8 million on employee health insurance claims. Of that, the 1,144 employees tapping the county’s health insurance contributed $810,412. Taxpayers footed the bill for the rest through a mix of property and income taxes.
So far this year, claims are down compared with the same time last year.
Fort Wayne city government paid $19.5 million in claims in 2008. Its 1,903 enrolled employees contributed $2 million.
As self-insured providers, the city and county act in place of an insurance company. If someone breaks a bone, the taxpayers pick up most of the tab for the cast and X-rays.
To save taxpayer money and reduce claims, the commissioners have instituted a number of changes in recent years.
The county created a health savings account option in 2006 that allows employees to save for medical expenses with a county contribution. Employees pay a low premium, taken from their paychecks. But the option also comes with a high deductible, requiring employees to pay up front for much of their health needs. During the first year, Allen County paid about half as much in health claims for health savings account participants as those enrolled in the traditional plan.
In 2007, the county opened a free medical clinic in the City-County Building in another effort to reduce claims. Encouraging workers to see a doctor regularly and take advantage of free diagnostic tests can lead to health concerns being caught before they lead to disease. The clinic has also diverted employees from urgent care options, which also saves money, Peters said.
This year, the county increased and expanded a wellness benefit that is part of employees’ basic health care coverage. The county now provides $800 for each enrolled adult to cover gym memberships, weight-loss programs and smoking cessation help.
Last year, the county provided $550 per enrolled adult for similar benefits, said Deb Hudson, with the county’s human resources office. But the money available had limited uses. Officials hoped that if employees were given more flexibility, they would be more likely to take advantage of the benefit, Hudson said.
It may seem like free gym memberships to some, Peters said, but that $800 also is used to cover annual preventive exams like pap smears for women or colonoscopies for older adults – a test that can cost up to $2,000, he said.
The county will subtract from what’s available of that $800 until it’s gone. Then employees will have to pay out of pocket for any physicals or routine medical exams – expenses that count toward their $1,250 deductible, Peters said.
As of June, 305 employees – a quarter of enrolled staff – plus 130 of their spouses signed up for gym memberships worth $86,000. The county will receive activity reports from the gyms to ensure employees are actually going to workouts, but results aren’t available yet, Hudson said.
Also, 35 people are trying to quit smoking and 50 people are working to manage their weight, Hudson said.
To pay for those benefits, participating employees pay more up front when they visit a doctor or get a prescription filled to meet a higher deductible compared with 2008. Employee contributions didn’t increase this year, Peters said, but it shouldn’t cost taxpayers any more to provide the gym memberships.
If employees are healthier, claims should drop and taxpayers should benefit, Peters said. “We’re looking for long-term trends,” he said.
Although County Councilman Paul Moss supports the new wellness benefit, he wonders whether people who already go to the gym are the only ones taking advantage.
“What’s the incentive to get healthy?” Moss said.
He said providing gym memberships could have long-term benefits despite the cost.
“But we’re spending taxpayer dollars and we’re in a budget crunch. I certainly hope it’s being scrutinized very carefully,” he said.
The county’s general fund is expected to lose $4.5 million in revenue next year because of the economy and changes in property tax laws.
Peters said the county would drop or change the benefit if it doesn’t save any money over time.
Allen Superior Court employee Deb King is taking advantage of the new gym membership option.
Most weekdays, you can find her at the Central YMCA on Barr Street exercising with a group of co-workers. King, 54, had never joined a gym before, although she did work out at home.
“I have high blood pressure,” King said. “I really need to kind of keep in shape to keep ahead of that.”
King’s family has a history of heart ailments. Her father recently died of congestive heart failure, and her two brothers both have heart valve problems, King said.
The regular workouts seem to be helping King. She’s cut her prescription dosage in half, and her children have noticed a change in her physique, King said.
So far, the county has paid $1 million less in claims than this time a year ago. If that continues, the county could save $2 million in health claims by the end of the year, Peters said.
