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County Picks New Insurer: Savings the Reason

By Jay Davis | VillageSoup, Belfast, Maine
November 16, 2007 

Waldo County's commissioners Tuesday selected a health insurance provider for employees that could save taxpayers $100,000 or so next year.

The commissioners unanimously agreed to contract with Meritain Health, a national company that stresses wellness and behavior changes as the key to reducing health care costs.

The company's Web site says, "We believe the only way to change the rising trend in healthcare costs is to change the behavior of employees, promote healthier lifestyles, and make them better healthcare consumers. As the cutting-edge leader in Consumer-Directed Health Care, we provide the education and tools necessary to change consumer healthcare behavior."

The shift in providers was made despite a flat-line premium bid for 2008 by the current provider, Aetna.

Commissioner Amy Fowler said the commissioners shopped around for an alternative after years of double-digit growth in employee premiums. She said, "This company is offering things we haven't had" in the past, including help with weight loss and smoking cessation.

The commissioners have not yet fine-tuned the contract with Meritain, but a schedule of costs handed out at Tuesday's meeting shows a total cost of $836,662, which is $108,000 less than Aetna's $944,000 bid.

According to Fowler and Commissioner Don Berry, the insurance is closely tied to the health-care costs of its customers. The bid entertained by the commissioners followed a good experience year, Commissioner John Hyk said.

If the county continues to have a good experience with claims, the Meritain system could pay off in two ways - lower premiums and incentives for employees to take classes and workshops that could lead to healthier lifestyles.

Fowler and Berry said the commissioners and a Meritain spokesperson met with county department heads and employees recently and "they seemed happy with it."

Berry said, "If we create a healthy community in our workforce, we will save all around."

A summary sheet comparing the Aetna and Meritain plans indicates Meritain offers some customer advantages, including paying 100 percent of some hospital and surgical costs that Aetna reimburses at 80 percent.

The commissioners chose Meritain just as the county is set to start contract negotiations with three new employee bargaining groups.

The county budget committee last week allotted $944,000 for employee benefits after commissioners told them Aetna had offered a flat bid for coverage in 2008. The committee sets the bottom line for department-by-department expenditures while the commissioners negotiate the specifics of employee wages and benefits.

During Tuesday's commissioners' meeting, several comments were made about the city of Belfast's recent $30,000 increase in premiums for the first six months of 2008. City Manager Joe Slocum said the city's claims experience in 2007 was bad, with one case costing $340,000.

He has spoken with the Maine Municipal Association Health Trust about making a competing bid for next year and will also consider a bid from Meritain. "We'll take a look at it," he said, after hearing about the county's decision.