Ohio County Employees Could Face Higher Health Insurance Costs
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WHEELING - Ohio County commissioners are grappling with how best to provide health insurance to county employees after learning the costs are likely to jump more than $2 million next year, while property revenues are projected to decrease another $2 million.
Commission President Zach Abraham reported commissioners have been deliberating about the insurance benefits for county employees "for about a month" as they seek to find ways to fill a $4 million hole in the county budget.
He reported the county is going to be hit with a 52% increase in its health insurance costs next year, equaling about a $2.1 million increase to county taxpayers.
"Couple that with the (decrease in property tax) revenue that has been projected by County Assessor Tiffany Hoffman, we were already down $2 million," Abraham explained. "So we have a $2 million deficit, and a $2.1 million projected increase in the cost of health insurance (on top of that). It is not looking pretty.
"We have been working hard to determine what health insurance options are out there. So we will continue to work on that with the broker, but we may have to make some significant changes."
He added commissioners want to strike a balance in terms of providing health benefits while "also being cognizant of our financial issues."
Hoffman spoke up and said that while she is aware changes are likely needed, she hoped the commission would give county employees plenty of notice so that they can adjust their personal budgets accordingly.
"One time, our employees were only given a week to decide what they were doing (in choosing a healthcare option," she said. "I understand we are down, but if there is a way we can be notified longer than a week before?
"Not knowing anything about our budget, I can't tell them if they are getting raises or anything to help cover this."
Last year, employees had about a month to make their decision, she said.
Abraham indicated sometimes the commission is at the mercy of the broker and insurance companies when it comes to determining final numbers.
"Our goal is to give people as much time as possible," Abraham said. "We'll give people as much advance notice as we can. We certainly don't want to surprise them.
"But we want people to know the health plans are going to be different. They may not look like what they did in the past. We have financial constraints."
Commissioner Randy Wharton noted commissioners used carryover funds from this year's budget to fill the projected $2 million in property tax revenue.
"That is not the right way to balance a budget," he said. "Should we experience a downturn next year, I suspect we wouldn't balance the budget the same way we did this year."
Hoffman interrupted him, and said she did expect to see another downturn in property tax values next year.
Wharton said he has advised County Administrator Randy Russell, Abraham and Commissioner Don Nickerson that a meeting with county officeholders needs to happen "post haste" to tell them the county may soon not be "doing business as usual" moving forward.
"That's $4 million the other way," he continued. "And when you continue to provide the services, we're going to have to do some really creative thinking.
"I have some ideas about what I don't want to see happen, but I have some ideas about what I think should happen. Just so you know you are not blindsided, that meeting will be taking place very soon."
Russell added it's not just $2 million in property tax revenue the county does not expect to have next year. Severance tax revenue in the county also is expected to take a $5 million hit next year, meaning the revenue could be $7 million less coupled with the increase in insurance rates.
Commissioners called for a private executive session at the end of Tuesday's meeting to further discuss the health insurance issue.