County plans to hire health insurance agent

This year, said Clerk of Courts Bob Germaine, county employees paid 200 percent more for their health insurance.

"Not 20 percent, not 30 percent - 200 percent," Germaine told the Highlands County commissioners on Tuesday.

If employees wanted, they could choose a cheaper policy with a $2,000 deductible instead of $500. But if they kept the same policy, their portion of the health insurance premium climbed from $48 to $160 a month. That's 233 percent.

For that reason, the Highlands County commissioners plan to hire an agent of record to negotiate next year's health insurance policy.

Until his death in 2005, Ford Heacock represented Highlands County, said a memo from county human relations director John Minor. In 2006, the county dropped the position.

"Our employees can't keep taking these kinds of increases," Germaine said. "We have to get out and find better insurance for our employees."

An agent of record, Minor said, is empowered to interact with insurance companies evaluate the products they're selling. The agent of record puts together an affordable package.

The agent may not be able to lower the rate, Minor said.

"The agent of record is like a broker," explained Commissioner Edgar Stokes, who serves on the insurance committee. "He's out there to get us the best deal."

Agents of record usually charge a 1 percent commission. The current costs $5 million, so the commission on that would have been $50,000.

"It's a pretty small amount, comparatively," Minor said.

"This is a common practice," said Commissioner Guy Maxcy, who sells insurance. "But sometimes I wonder if we would be better served to have our own in-house agent of record."

To save the most money, Minor and Maxcy agreed, the agent of record must work all year long to reduce claims and work on programs.

Because of the timing, County Administrator Mike Wright interjected, the county needs to hire an outside agent this time, and consider an in-house agent next year.

Another good reason for us to hire an agent of record, Minor said, is if Congress passes the health bill. The county may need an expert to comply with the new law.

"We do have people who work full time to handle insurance matters," Commissioner Barbara Stewart said. "We need expertise beyond that."

"The recent increase in premiums for the health insurance has caused concern among some of the elected officials that the county may not be getting the best health insurance available and that an experienced agent of record may help us get the best coverage and the lowest premium rates for 2011," Minor said in the request to the commissioners.