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Harrison County approves reinsurance renewal and prescription-formulary changes to reduce benefits costs
Summary
County consultants recommended staying with Reunion Health Services for reinsurance renewal and proposed prescription-formulary and optional drug-savings programs projected to reduce county costs; the board approved the renewals and formulary changes after discussion of employee communications and appeal mechanisms.
Harrison County staff and benefits consultants recommended renewing the county's reinsurance program with Reunion Health Services and adopting changes to the prescription formulary intended to reduce drug spending.
Consultants presented market context and reported that Reunion has paid claims and has institutional familiarity with the county's experience. "Knowing what we know about Reunion, we've had a lot of claims over the years and they've paid every time," the presenter said while recommending the renewal despite some higher cost than an alternate quote because of payment history and reliability.
The board was also briefed on a change to the prescription drug formulary and an optional 'Counter' drug-savings program. Staff said the formulary move could project savings of roughly $558,000 based on current utilization; an optional targeted program could yield additional savings if participation rates rise. Consultants emphasized protections for employees on life-saving medications and a 90-day notification and appeal window for affected individuals.
Motions to renew reinsurance with Reunion Health Services and to move forward with the formulary change were made, seconded and carried on voice votes. Board members directed staff to prepare communications to affected employees, provide the required notices and maintain mechanisms for appeals and provider exemptions.
Next steps: staff will finalize contract renewals, implement the formulary changes with communications and follow up with the board on enrollment and cost-savings metrics.
