Blue Ridge, Ga – July financial report informed commissioners that insurance claims blew 2019 risk management budget by 37 percent.

Chief Financial Officer Robin Gazaway delivered her monthly financial update for 2019 through June. Several departments were over budget six months into the year. Some departments carried pre-payments for leases from the beginning of the year.

Gazaway also met with all department heads to address line items individually.

However, Risk Management went 37 percent over budget, outpacing overages in other departments.

Health insurance claims represented the bulk of Risk Management expenditures. Post One Commissioner Earl Johnson, asked “what are we looking at as far as curtailing it. We’re already way over what we budgeted?

The new insurance policy which took effect on July 1 should help reduce the expense. The insurance company, who works with the county, expected with spouses coming off the policy that government could save over $200,000-$300,000 in insurance claims.

Gazaway stated, “We installed some new programs to hopefully keep employees healthier, but as far as claims go, that’s just when they go to the doctor.”

However, Gazaway doesn’t have the numbers of how many people stopped using county insurance in July. The number of claims was down from last year, but no guarantee about people’s health for the rest of the year.

In 2017, the fund balance covered the overages. However, if insurance claims continue to rise, then more health care changes could be coming for Fannin County employees or changing the entire insurance program.

“Certain people that have gone over a certain amount, reinsurance pays us back. We haven’t gotten some of that money back, but they will eventually if it’s the same people, give us money back, explained Gazaway, “We have a stopgap that we pay out before we get the money back.”

Currently, Fannin County has $200,000 in reinsurance claims.

“I’m very concerned about this number,” stated Johnson, “I’m not trying to be hard-nosed. I don’t deal with numbers where I just sit here and hope. It’s like me hoping none of my guys wreck today. I know what the cost could be if they all decide to hit each other.”

Gazaway assured that all the reinsurance money back from some employees, but has to go over the stopgap first. At the year-end, the county will get a check back if it spent over the maximum amount, which is $2.4M.

“I just budget less than that hoping we don’t have to spend that money,” stated Gazaway.
2019 marked the third year Fannin County operated off a self-insured plan.

“The motivation to go to that in the first place was the anticipation that there would be savings, which hasn’t happened,” stated Chairman Stan Helton, “I guess a conventional insurance program, they would tell us the cost so we can allocate it that way…I don’t like it either. It’s the biggest variable cost in the whole budget.”

Johnson asked, “Can we buy the amount down?”

Gazaway offered to raise deductibles or out of pocket costs, but everything affects the employee. For the last three years, deductible and premiums have remained the same.

“At some point, we’re going to have to be competitive with other benefit plans,” said Johnson, “eventually the county might have to absorb some of the costs because everything that happens can’t directly affect the employee. Other

plans might be more attractive to an employee.”

The county also pays for tobacco cessation methods on the new plan, which means the county will spend more money in the short-term with hopes that future claims decrease. Currently, a two-week supply of patches costs around $30 and a two-week supply of nicotine gum cost $40.

Still, smokers are expected to pay an extra $50 on their insurance premium starting January 2020, and the county doesn’t cover cessation methods forever. Several tobacco users have informed Gazaway they will pay the $50, so county might not experience and expenses increase from covering cessation patches, gum, inhaler or lozenge.

SPLOST and LOST for 2019 continue to rise with SPLOST 10% ahead of 2018 intake at this time. Currently, the county’s budget even for the year, not under or over.

Recreation Department Improvements

Recreation Department Head Eddie O’Neal presented a bid for a TOPO survey of the park to fix drainage problems. The bid for $13,700 TOPO service provides Recreation Department with a starting point for creating solutions to heavy rains on soccer, baseball, and softball fields.

“Playing surfaces are lower than walking paths and parking lot, and it’s a continual fight to maintain,” said O’Neal,

“We can take the TOPO survey to engineers get help with drainage and what needs to happen on these fields.”

SPLOST funds will pay for improvements.

“We’ve had a considerable amount of rain,” stated Post Two Commissioner Glenn Patterson, “They wouldn’t be able to practice or play games.”

455 to 500 kids use those fields every year.