Lancaster County commissioners on Tuesday voted 2-1 to join 14 Pennsylvania counties to buy health insurance for county employees for the next three years.
The move will save taxpayers a projected $5 million without changing employees' medical coverage, because the county's current insurance provider — Capitol Blue Cross — will continue in that capacity through the consortium, according to commissioners Dennis Stuckey and Scott Martin.
"There will be no change in benefits whatsoever, and our costs will go down," Martin said.
Commissioner Craig Lehman, who cast the dissenting vote, said he would rather see the county finish the remaining three years of its five-year contract with Capitol Blue Cross and then investigate alternative programs through the "competitive process."
He said he preferred that to simply signing on with a single group that says it can offer Lancaster County a better deal than it's currently getting.
"I do have some difficulty when one product is brought to say this product is better than what you have," he said. "I generally prefer to have, if possible, a little bit more insertion of competitiveness from the market place."
Lehman also said he's worried the county is exposing itself to more risk, because it now will be self-insured as part of the consortium.
"In this economy, managing risk is important, and I think the full-insurance model protects the county better," he said.
With a workforce of about 1,700, Lancaster County will be larger than any of the 14 current members of the Pennsylvania County Health Insurance Purchasing Cooperative.
Dauphin County is next largest, with 1,400 employees.
The consortium is able to negotiate better rates for its members because of its size, Stuckey said.
Another benefit of the consortium, Martin said, is that it offers an incentive to counties to promote wellness.
"Under our current setup, you pay what you pay whether you have a good year or a bad one" for claims, he said. "Here, if you have a good year, the savings come back to the county."
If claims exceed the coverage paid for by the county, the consortium covers that overage through insurance paid for by all the members.
Stuckey and Martin said the pay structure that will be set up under the consortium plan should translate into a cost savings for the average county employee.
"Naturally, there are some people who have more health issues than others, but overall, we believe this will leave employees with more money in their pockets," Stuckey said.
By joining the group, Martin said, the county could save as much as $5 million in health care costs over the next three years.
"Bottom line is, health insurance is expensive no matter what way you approach it," Stuckey said. "We believe this puts us on a path to controlling our own destiny and being able to manage the costs that allow us on a long-term basis to provide quality health care for our employees."
• In other business Tuesday, the commissioners voted to preserve two county farms for a total of a little more than $500,000.
The commissioners approved buying the development rights to the 105-acre farm owned by Donald E. and Thelma M. Mowrer in East Donegal and Conoy townships for $419,080.
They also approved buying the development rights to the 61-acre farm owned by Lester U. and Catherine O. Weidman in Rapho Township for $100,716.
With the preservation of these two farms, Lancaster County has preserved 743 farms covering 64,258 acres.
The private nonprofit Lancaster Farmland Trust has preserved another 310 farms covering 19,258 acres in the county.