SIOUX CITY — Woodbury County has decided to suspend a long-standing policy providing benefit coverage to retired employees over 65 in an attempt to combat rising health insurance costs.
The board of supervisors voted on Sept. 16 to discontinue benefit coverage for retirees over 65 and their families in a unanimous vote.
Human Resources Director Melissa Thomas said at the meeting as health insurance costs increase, the county has had to make difficult decisions and review their policies.
Iowa code requires the county to provide insurance for retirees up to 65, but not past that. Thomas said they have been offering insurance for those over 65 since before she started.
The Journal spoke with Thomas about the changes. Questions and answers have been lightly edited for clarity and style.
What was the county offering before?
“These benefits include dental, vision and then partial pay of a Medicare supplement. ”
Why was this change made?
“We’re just doing our part in the ongoing effort to fight the rising cost of healthcare, and being responsible with our health plan.
When retires under the age of 65 are on our healthcare plan, at the age of 65, they are disqualified for that plan, so it aligns as well with our benefits for our retirees on our healthcare plan.”
How many individuals will this impact?
Thomas said the dental insurance is the highest utilized by the over 65 age group with 53 members.
When will this go into effect?
“We’re going to send out letters within the next week. This change takes effect 12/31 so at the end of this year, they’ll stay on the plan until then. At that point we’ll send them out COBRA (Continuation of Health Coverage), which is the option to remain on the plan through that avenue until they can find different coverage.”
How much will the county save and were will the savings go in the budget?
Thomas said just for dental insurance the county could save $75,000 annually, and another $7,800 from the Medicare supplement.
“We will find those savings in the health fund.”
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Caitlin Yamada
Education and county government reporter
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