BATH TOWNSHIP — Bath Township Trustee Steve Ross said during a previous meeting that he would be attending the Ohio Public Entity Consortium-Healthcare Cooperative (OPEC-HC) Board of Directors meeting in Grove City on June 26.
Ross pointed out that he was attending the meeting in an effort to determine whether the township should reconsider renewing its contract with the medical insurance consortium. The township trustees previously notified the board of directors and officially terminated the township’s current contractual commitment when it expires at the end of the year.
During the May 31 township meeting, Ross stated that fiscal mismanagement within OPEC-HC had brought about a $14 million deficit. He explained that the deficit recovery rate built into the consortium’s Jan.1, 2016 renewal plan was 25 percent. However, the plan should have reflected a 48 percent increase to cover a $7 million deficit at the end of 2015. Ross also noted that the township would be charged significantly under the withdrawal condition.
“We may have to pony up $4,000 for each of the 13 township employees covered under the healthcare plan,” Ross said during the May 31 meeting. “It could end up costing us $52,000 to get out of this.”
Ross stated that he had a recent conversation with Frank Harman, a benefit consultant at the Ohio Insurance Services Agency who exclusively marketed the Ohio Public Entity Consortium.
“I shared with him that Bath Township has been happy with the customer service, but the consortium is facing a $14 million deficit. We don’t know how that shakes out; and clearly, that is an issue,” said Ross.
Ross said Harman also suggested that the Jefferson Health Plan played a bigger role regarding the current deficit. He noted that Harmon would be presenting a proposal at the meeting as well.
The Bath Township Board of Trustees will meet in regular session at 7 p.m. Wednesday, July 5 at 1006 Yellow Springs-Fairfield Road.
Linda Collins is a freelance writer for the Fairborn Daily Herald.