MANSFIELD — Richland County Children Services employees are returning to the county’s health plan, effective Jan. 1, 2022.
County commissioners approved the request on Tuesday from agency Executive Director Nikki Harless, who said the agency “has been experiencing double-digit increases year after year” since going out on its own in 2017.
The unanimous vote came after Rachel Troyer, the county’s central services coordinator, told commissioners adding the agency’s employees back to the plan will not result in higher costs for the county.
The agency, which has 95 current employees, decided to leave the county plan after commissioners in 2016 reached an agreement to go with an insurance plan through the County Employee Benefits Consortium of Ohio.
That plan, which cost most county departments an additional 12 percent, was similar to the county’s previous self-insurance plan, but had higher out-of-pocket expenses and higher premiums.
Since moving to CEBCO, the costs of the plan have stabilized for the county and its employees.
RCCS officials figured at the time the increase would cost between 18 and 20 percent more in premiums, leading the agency to accept a seek-and-accept deal from the Jefferson Health Plan Self Insurance.
Harless said the agency has “not fared well” in terms of health plan costs since the move.
“Our single PPO plan went up 89 percent and our family plan went up 75 percent, which is the plan most of our employees are on,” Harless said.
Initially, the move meant lower premiums for RCCS, according to Harless, but those costs have climbed and the agency has been forced to spend about another $500,000 in the last few years when premiums didn’t cover claims.
The agency had to pay an additional $82,000 in 2017,$262,000 in 2019 and $188,000 in 2020.
“The premiums they gave us were not high enough to cover the claims,” agency Finance Director Kevin Goshe said. “So we had to deposit another half a million dollars over the course of the five-year term.”
Commissioner Tony Vero asked the two to explain why the agency went out on its own.
“We thought we could find a better plan,” Goshe said, “but clearly that was not the case.”
In a July 14 letter to commissioners, Harless said JHP officials “assured us that this situation will not continue and that we will end up benefiting from the plan and eventually build a reserve.
“However, we are not so optimistic and believe our agency is too small to be self-funded and in a pool by ourselves,” Harless wrote.
Vero said it made sense to allow the agency to rejoin the county plan. RCCS operates outside the general fund on its own local levies along with federal and state funds while governed by its own board.
“It’s important to be good partners,” Vero said. “I think there needs to be an understanding that we hope there won’t be another departure. But if (county) premiums are not going to go up, I am good with it.”
Commissioner Cliff Mears agreed, saying, “There is no reason not to.”
