Attala County employees may see the cost of their insurance premiums go up soon.
A representative from Blue Cross Blue Shield of Mississippi spoke to the members of the Attala County Board of Supervisors at their Monday meeting and reported that the county will have a rate increase of about 20% beginning Oct. 1
The rate increase is due to not only inflation but also the county had a higher number of claims last year. In the last couple of years, the rate has either stayed the same or been reduced by 10%.
The county has 83 employees covered, with 137 members on its insurance plan.
“The increases vary for the different enrollment options with Blue Cross Blue Shield but ultimately it is a 20% increase in total,” said Chancery Clerk Taylor Casey following the meeting.
The county’s loss ratio was 106.9%, with Blue Cross Blue Shield paying out about $770,000 in claims and the county paying in about $720,000 in premiums. There was about a $50,000 difference. To have a rate hold, the county would have needed a loss ratio between 80 and 85%.
While Blue Cross Blue Shield is the county’s primary insurance provider, it also has secondary coverage provided through Employee Benefits Services, which is the third-party administrator of the county’s bridge plan.
The bridge plan allows the county to raise the BCBS deductible and use some of the savings to pay into the bridge plan, which replaces some or all of the benefits lost by raising the deductible. This saves the county and its employees money.
The county currently has about $200,000 in its bridge plan fund.
To offset the costs of the rate increase, Employee Benefits Services advised the board to take a 50% claims credit using the bridge plan fund, which would help absorb some of the increase in premiums due.
“If the 50% claims credit is used, then the result will be approximately a $74,000 reduction in annual premium cost,” said Casey.
Board attorney Scott Pickle said the county has had the bridge plan for many years, and it has been helpful in keeping insurance costs down for both the county and county employees.
There was no change in the bridge plan rates provided by Employee Benefits Services.
No action was taken. The board will continue to discuss the matter before Oct. 1.
