Sobering meeting. Expensive subject. Gloomy forecast.

The Lawrence County Commissioners received

news from it's medical insurance representatives Thursday -- don't be surprised if health insurance premiums increase 30 to 40 percent next year.

Jeff Cashman, broker representative with Medical Mutual Insurance of Powell, and Rick McNelly, sales and service representative with McNelly, Patrick and Associates of Jackson,

told commissioners that the county employees' insurance claims have increased substantially over the past year.

"The county's paid claims rate versus the amount of premiums paid is running at about 90-95 percent right now," McNelly said. "Typically, we see groups at about 70 percent."

More accurate estimates won't be available until November or early December. Depending on those results, a premium increase could have a $200,000-300,000 impact on the county's general fund. Right now, insurance costs the county's general fund more than $1 million annually.

"That's easily 10 percent of our budget," Commission President Jason Stephens said.

The current contract for health insurance expires Dec.

31.

Options open to the county for handling the situation are not popular. One option would be to adjust benefits, such as the prescription drug plan.

Right now, the prescription drug plan requires county employees to pay $5 for generic drug prescriptions and $10 for brand-name drugs if the employee uses a 90-day supply mail order system.

Another option would be to put the insurance contract up for bid and see if the county can attract another company with a better rate.

"It's something to look at," Stephens conceded. "It's a tough issue to tackle. Its complicated, and it hits at an emotional level."

One option that probably will not be considered would be to ask employees to contribute a larger portion toward the premium cost.

Stephens said a year ago, the county increased each employees' premium share from 15 percent to 25 percent.

Last year, premiums went up 43 percent. County officials made changes then to the out-of-pocket costs employees paid, and to insurance deductibles. These changes have limited costs from increasing.

But even with the changes, the county's finances could take another huge hit at year's end.

McNelly said the issue of health care costs and quality is not a subject that is not exclusive to the county.

"It's not just Lawrence County that's experiencing this," McNelly said. "It's throughout Ohio we're seeing this happen. It's out of control. Health care costs are skyrocketing for everybody." Teresa Moore/The Ironton Tribune