COUNTY FACES BIG INCREASE IN HEALTH INSURANCE RATES

JACKSON - Health insurance premiums for Cape Girardeau County employees climbed $42,000 or about 18 percent over last year, under a new insurance plan which took effect Saturday.

Last week, the county commission awarded the health insurance bid to Mutual of Omaha, which they determined had the best propsal of about a half dozen submitted. For the last two years, the county's insurance has been with Blue Cross/Blue Shield.

Presiding Commissioner Gene Huckstep explained the commission was able to keep its rates from climbing as much as they could have by raising the deductible from $200 to $500.

"We also got some additional coverage we didn't have before, but in some areas we have a little less," said Huckstep. "Overall, we are satisfied with the package."

He noted that continuation of what the county had in the past yar would have cost an additional $75,000 to $100,000 a year, and Huckstep said the county simply could not afford to do that.

In all, the county's insurance premiums for health coverage is about $267,000 a year, although a portion of that is reimbursed to county general revenue from the health department. Their employees are included in the county plan, but funds from the county health property tax are used to pay those costs.

The county pays the medical and dental insurance of its employees, however, employees are responsible for paying for dependent coverage. Monthly premiums increased by about 24 percent, from $206 a month to $256 a month.

Huckstep and County Clerk Rodney Miller noted that governments and businesses are facing increasing health insurance costs and a large increase was anticipated.

"If you look at what others have gone through, we're satisfied with what we were able to do this year," said Huckstep. "Everybody else is facing the same thing; the industry as a whole is just skyrocketing."

Another factor in Cape County's higher rates, Miller said, is that its rate of claims last year was pretty high. "We are hoping that will eventually come under control and then maybe our rates won't increase at all."

Miller, who is president of the Missouri County Clerks Association and a board member of the Missouri Association of Counties, pointed out that rising insurance costs are having an impact on governments all over the state.

Many are having to cutback on their plans by doing things like increasing deductibles or reducing the scope of coverage.

"As far as the insurance industry statewide and nationwide, it is obvious that health insurance and acute health care is becoming one of the priority issues of the day," said Miller.

"There probably is no end in sight until the costs of health care come under control," said Miller.

The insurance paln with Mutual of Omaha runs through May 31, 1992. Huckstep said the new plan has a little better dental coverage, increases life insurance on employees from $5,000 to $10,000, and has a prescription drug card.

"Every year there seems to be a little give and take in our coverage," remarked Huckstep. "Hopefully the costs will eventually level off and start going down."