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Health Care Tour: “Seeking Patient-Centered Care”
City of Mauldin
The Issue:
- The City of Mauldin switched from the State’s health insurance program to The Ferguson Employee Benefits Agency, a broker that supplements traditional health coverage with incentives to stay well. Through the Ferguson Group the City selected BlueChoice as their health insurance provider. By changing health insurance providers, the City of Mauldin was able to offer expanded coverage to its 150 employees with a savings to employees and taxpayers.
Findings:
- The initial impetus for switching from the State’s health plan was to save taxpayer dollars. Health insurance premiums through the State’s BlueCross BlueShield plan had increased 21% from 2006-2007 and were expected to increase 9% in FY2008.
- An Insurance Selection Team of 12 members was expanded to 20 to include some of the City Council and at least one member from every City department.
- Forming the team gave everyone a buy in and sense of participation.
- The team narrowed the selection down to 3 providers and then selected Ferguson for its focus on prevention and disease management. The team also noted that numerous “progressive communities” were joining with Ferguson.
- The City of Mauldin projects savings of $95,930 for the remaining of FY2008 and $150,895 for FY2009.
- These savings have been passed on to the employees. Employees with family plans have seen savings up to $200/month.
- The City expects premiums to remain steady or have only a slight increase due to the implementation of a wellness program.
- Risk, not volume, is the determinant factor in premiums.
- Mauldin accomplished savings even through it meant going from a large insurance risk pool to a smaller insurance risk pool by proving it had a good claims experience (59% claims to payment ration).
- Ferguson’s lowest rate is for its smallest client, a car audio shop that employs 18-19 year old males.
- The new plan offers increased benefits.
- The plan reduced doctor’s office and prescription drug co-pays.
- The plan improved vision and dental plan benefits for less cost to the employee.
- A Flex Benefit Card allows employees to use pre-tax dollars for over-the-counter medical needs.
- No employee lost needed benefits as a result of the switch to the new plan.
- Over time, Mauldin moved beyond a cost savings approach to one of improving employees’ lifestyles and quality of life.
- The City used cost savings to fund the Wellness Program for 97 of the city’s 150 employees who chose to participate.
- A member must complete a health risk assessment, participate in health screening and monthly sessions by a nurse, make necessary adjustments to improve health and attend 2 of 4 quarterly Lunch and Learn sessions.
- Lunch and Learns – the City holds brown bag health education talks four times per year.
- Wellness program participants receive a deductible reimbursement incentive providing up to $125 for deductible medical needs.
- A “Lose Weight in 2008” offers cash prizes for weight loss.
- How else does Mauldin incentivize wellness?
- Membership at the new $7.2m Mauldin Sports Center is free for all city employees and discounted 50% for their families.
- Flexible work schedules encourage employees to take time to work out.
- City leadership leads the way and uses the sports center regularly.
- The Ferguson approach embraced by Mauldin is more of a concept than a benefit structure. It invests short-term savings into long-term savings.
When: March 17, 2008
Where: Mauldin City Hall, 5 E. Butler Rd, Mauldin, SC 29662
Hosts: Don Godbey (Mayor), Trey Eubanks (City Administrator), Gabe Hunter (Council member and Planning & Economic Development Chair), Russell Sapp (Assistant Administrator and Fire Chief), Lisa White (Finance Director), Cindy Miller (Municipal Clerk), Michael Reynolds (Council member), John Ferguson (Principal for The Ferguson Employee Benefits Agency), Scott Ogburn (Director of Marketing for the Ferguson Group)