Wednesday, August 8, 2012
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COVINGTON - The county and its employees will receive a rebate from insurance provider Cigna that will result in one reduced premium and possibly the restoration of two additional paid holidays for employees.
The rebate totals $138,195 and is the result of the Medical Loss Ratio provision in the Patient Protection and Affordable Care Act. The act requires insurance companies and HMOs to spend a certain percentage of premiums on medical care and activities that improve health care quality -- 85 percent for large groups and 80 percent for small groups. If Medical Loss Ratios do not meet the minimum percentage, insurance companies must pay policyholders a rebate.
The employee portion of the county's rebate is $12,014. This will result in a one-time premium reduction of $14.10 for those with single coverage and $23.47 for those with family coverage.
The remainder of the rebate will be applied to the September 2012 health care insurance premium for the county, reducing the general fund obligation of that line item by $126,181.
The amount will be set aside pending a December financial review by the BOC, and may be used to fund two additional paid county holidays, according to County Manager John Middleton.
County employees have had five paid days restored in this year's budget, reducing unpaid holidays from 15 to 10. There is a three-year phased plan to restore all 15 days to employees.