DeKalb overspent health benefits by 6 percent

By Megan Matteucci

The Atlanta Journal-Constitution

DeKalb County overspent its health benefits budget by 6 percent last year, according to a study released Tuesday.

DeKalb spent $78.5 million on health benefits in 2009, according to Larry Jacobs, the county's acting deputy finance director. The county had budgeted $73.9 million.

Jacobs said the cost overrun was because the county switched insurance providers from Blue Cross to CIGNA, and had to pay for lingering medical claims. DeKalb was able to use a $10 million health care reserve account to make up for the excess costs, Jacobs said.

DeKalb covers 7,752 people through its health plans with CIGNA and Kaiser. About 34 percent of those patients have a chronic condition and require continuous medical care, said Dan Jackson of Mercer Health & Benefits LLC consulting company.

A study conducted by Mercer found DeKalb spent 1.5 percent more per employee on health care than other governments.

DeKalb expects its health costs to rise by another 8 percent in 2011.

In response, commissioners said they are looking at ways to better manage those costs, including switching to a health savings account and possibly altering coverage.

“We’re going to have to force those with chronic diseases to better manage their care or they’re going to see higher costs,” Commissioner Jeff Rader said.

The committee is expected to finalize health insurance changes by August when the county must offer benefit enrollment for employees.