Tim Boyd questions Hamilton County's no-cost-to-retirees health benefits

photo The Hamilton County Courthouse stands in the heart of Chattanooga.

Hamilton County retiree claims costJuly 1, 2011-Sept. 30, 2014Month // Total Claims // Cost Retirees // Plus Family // TotalJuly 2011-June 2012 // $1,550,968 // 109 // 65 // 174July 2012-June 2013 // $1,564,933 // 98 // 61 // 159July 2013-June 2014 // $1,260,854 // 116 // 68 // 184July 2014-September 2014 // $392,423 // 114 // 67 // 181Source: County human resources office via Cigna Health Insurance

Hamilton County officials last week voted to clarify a policy that pays full health benefits for some retired county employees. But one commissioner said that policy needs to be examined, and possibly ditched.

Currently, county employees who retire with 30 years of service get full health benefits with no personal contribution until they can qualify for Medicare -- at age 65 for most people. The same goes for those who retire at 60 with 20 years under their belts.

During and after an agenda session on a measure to clarify the language for employees, Commissioner Tim Boyd questioned the policy, saying not many in the private sector receive similar benefits.

"I just kept reading 'pay in full with no contribution' and I kept thinking -- what a deal," Boyd said. "That just struck me as -- why are we doing that?"

Boyd said last week that he wanted to follow up with the county finance department to find out how many people are covered by the policy, and how much it costs taxpayers.

"Certainly, in the near future I want to understand why we do it from [county human resources], how many people it affects, how much money it's costing us and ask the question: Is that something we want to continue to do?" Boyd said.

County records show that since July 2011, the county has paid $4.7 million in health-care costs for retired employees and their families. The number fluctuates annually -- there were 109 retirees with 65 dependents in 2011, and there are 114 retirees and 67 dependents so far this budget year.

County spokesman Mike Dunne said data was only immediately available back to 2011, when the county last switched health insurance contracts. County human resources staff were helping employees navigate open enrollment last week and couldn't get older numbers.

Dunne said the numbers include all retiree medical benefit costs -- not just those who did not contribute to the plan.

Other retirees, depending on age and years of service, pay anywhere from one-third to two-thirds of their insurance premiums, and still others don't qualify for health benefits.

County Mayor Jim Coppinger said the current retiree benefit package was adopted by the commission in 2001, well before he took office. He said Friday that it's always good to review policies, but cautioned against making rash decisions about employee benefits.

He also added that any changes would affect only new hires, not current employees or retirees.

Health insurance benefits in both the public and private sectors are a challenge these days, Coppinger said.

"All of us have to look at ways to reduce the cost," he said. "We are very conscious of the fact that the taxpayers are the ones paying the benefits, but we also want to offer a good benefit package to retain our employees."

He added that insurance is a very complex issue that the county "constantly monitors." And the county has in the last several years made adjustments that required its employees to contribute more on premiums.

"I think it's unwise to look at a single issue with insurance, such as retiree insurance, when it arises," Coppinger said. "You have to look at the big picture and we are constantly doing that."

Contact staff writer Louie Brogdon at lbrogdon@timesfreepress.com, @glbrogdoniv on Twitter or at 423-757-6481.

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