FINANCE, CLAIMS AND ACCOUNTS COMMITTEE
					  MEETING MINUTES

					September 26, 2002

A special meeting of the Chippewa County Board of Commissioners' Finance, Claims and Accounts 
Committee was held on Thursday, September 26, 2002 at the Chippewa County Courthouse Annex in Sault 
Ste. Marie, Michigan.  Acting Chairman Earl Kay called the meeting to order at 7:00 p.m. with a quorum 
present.

MEMBERS PRESENT: Earl Kay, Don Cooper, Ted Postula, Gary McDowell, Rita Dale, and 
                 Bernard LaJoie

MEMBERS ABSENT:	Aaron Hopper

OTHERS PRESENT:	Tim Dolehanty, County Controller, Dave Carpenter, Finance Director, 
                Brian Decker, Cam Cronkite

Additions / Deletions to the Agenda
Acting Chairman Kay called for changes to the agenda.  Hearing none, the agenda was declared approved as
presented.

Public Comments
There were no public comments.

Agenda Item:  Fiscal Year 2003 Budget
At the request of Acting Chairman Kay, Finance Director Dave Carpenter reviewed a graph depicting trends 
in fringe benefit costs.  He noted in particular the rate at which health insurance has increased over the past 
five years.  Mr. Carpenter reported health insurance premiums under the current program would increase by 
25.26% in 2003.

Acting Chairman Kay introduced Cam Cronkite from Blue Cross and Blue Shield of Michigan.  Mr. 
Cronkite confirmed the figures presented by Mr. Carpenter.  He stated claim liabilities outpaced paid 
premiums by $457,526.  Blue Cross is permitted by law to recoup up to 25% of this total, which is then
rolled into the cost of the premium.  Mr. Cronkite noted the County's claim liabilities have consistently 
outpaced paid premiums since 1995.

Mr. Cronkite offered an extensive review of the County's claim experiences over the past year.  The cost of 
various components of the premium including the prescription drug rider and retiree benefits was discussed.

Mr. Cronkite presented a self-funding option for the health insurance benefit.  Under this program Blue 
Cross would administer the health insurance premium while the County would assume the risk of funding
the benefits.  Presently, the Road Commission operates as a self-funded agency, as does Lake Superior State 
University and War Memorial Hospital.  Mr. Cronkite reviewed the cost breakdown of the self-insured 
product.  He said if the County tried but did not like the self-insured approach, Blue Cross would reinstate 
the traditional program.  He also emphasized that changing to a self-insured arrangement would not effect 
benefits available to employees.

Commissioners discussed various options available to help control the cost of health insurance.  Mr. 
Cronkite agreed to provide additional cost breakdowns specific to the Chippewa County group for 
consideration by the Board.
Committee Comments
There were no additional comments from committee members.

Chairperson's Comments
Acting Chairman Kay had no additional comments.

Adjourn
Acting Chairman Kay declared the meeting adjourned at 8:27 p.m.












__________________________________	__________________________________
Timothy J. Dolehanty, AICP, Recorder	Earl Kay, Acting Chairman