The Greene County Commission's Insurance Committee was told Wednesday that employee medical claims have been running higher than expected.

Jim Jordan, the Bristol insurance agent that handles the county's Blue Cross insurance for employees, reported that claims for July thorough September have averaged roughly $350,000 per month. Jordan also serves as an adviser on health insurance.

He said the county government's current insurance premiums were figured on an estimate of $315,000 per month. Jordan said the average for January through September was $328,000 per month.

County Attorney Roger Woolsey asked Jordan if he was telling the committee to expect "a hefty increase" in premiums when the policy comes up for renewal.

Jordan did not answer directly, but noted again, "Our claims are not turning around. They're staying pretty high."
Dan Jackson, the county government's insurance risk manager, as well as a vice president with McInturff, Milligan & Brooks, said after hearing from Jordan that the committee needs to "make sure you hold onto that money in the reserve fund" that was set aside when the county government converted to self-insurance for employee health care, and began purchasing conventional coverage.

Jackson said the money, about $800,000 held in two reserve accounts, will be needed if the county returns to self-insurance for health care.

If that decision is made, Jackson said, the county needs to approach self-insurance as a long-term proposition. The county was self-insured for employee health care from 1988 until 2001, and continues to be self-insured for workers compensation, liability and buildings.

Beyond discussion, no action was taken at the meeting.

Earlier, County Budget Director David Lawing reported "no unusual activity" in the county's self-insurance fund that covers those items.

Lawing pointed out that this fund currently is low on cash, but explained that the Tennessee Valley Authority is two payments behind schedule on "in lieu of taxes" payments to the county. All of those payments go into the self-insurance fund.

Lawing gave committee members a report that showed year-to-date revenues of $19,605 but expenditures for the year so far of $591,081.

The payments from TVA have typically been late for many years. A total of $1.6 million per year is typical.

Jackson also provided committee members a graph giving an overview of the county's insurance exposure.

The graph showed levels of self-insurance coverage in yellow, added additional purchased coverage to provide "caps" in green, and showed additional exposure in red.

The county government's "catastrophe" liability coverage is capped at $1.5 million each on vehicles and equipment, and $2 million each on liability, workers compensation, and environmental problems, meaning that any loss that exceeds those amounts would have to be covered by the county government without help from insurance.

Purchased insurance covers the replacement costs of buildings up to a total of $183 million, according to the graph.

The graph only showed a red bar for malpractice insurance. Jackson said that, since the graph was done, the county has been able to obtain malpractice insurance for the dentist that is employed at the county health department. The county does not have a physician who is a county employee.

David Weems, the county's road superintendent, noted that one footnote mentioned specific insurance coverage for an Ingersoll excavator and a roller in the Highway Department, but made no mention of a "Grade-All" rubber-tired excavator that costs more than the other two. Jackson and Weems agreed to add insurance coverage on it.