Howard County, Kokomo government employee clinic lowers costs, increases health

The clinic, which provides inexpensive health care to public employees, saw a total of 5,816 visits in 2014, including 1,724 from Kokomo employees and 1,910 from Howard County employees, according to RepuCare Vice President of Clinic Operations Sarah Morrison.

The remaining visitation total came from employee spouses and dependents, who are given the same clinical treatment benefits as public employees.

The initial idea for the clinic came in December 2009, when officials chose to enter into a contract with Novia Health Clinics and American Health Network, effectively setting the table for the clinic’s current popularity.

“Many large employers throughout the country have been moving this direction as it provides exceptional care and an opportunity for lower cost to both the employer and employees, as well as their dependents and spouses,” said Morrison.

Such a high level of participation has been made possible by the clinic’s approach to pricing, said Kokomo Human Resources Director Kathy Horton, who estimated that 55 to 60 percent of city employees regularly utilize the clinic.

According to Horton, both the city and county are charged a fixed fee of $5 per month for each employee. In addition to the monthly fixed charges, the city pays roughly $59 per employee for basic service charges, compared to the $324 that would be charged by Anthem Inc., the city and county’s current health insurance provider.

“You really can’t get it much cheaper than that,” said Horton. “I am a firm believer that clinics work for any large employer. The services that are provided through the clinic are pennies on the dollar compared to what we do through the private market.”

Using the clinic has allowed the county to see an 11 percent claim reduction and a drop of nearly $500,000 in total health care plan costs since 2013, according to Howard County Commission President Paul Wyman, who said his family routinely uses the clinic.

“The clinic has been a huge success, and if we are treating people today, it will also help costs in the future,” Wyman said. “We want to help people today and manage costs over the next 10 to 15 years.

“However, our whole concept with the clinic is not only to control health insurance costs, but to also have a healthier workforce.”

Morrison, who noted the clinic was at a 119 percent utilization rate in 2014 due to excess demand, echoed Horton and Wyman’s statements and described the benefits of sending employees to a clinic.

“Typically, an employer will experience a 50 percent cost savings on a per visit basis, which equates to 7 to 15 percent savings on their entire health plan costs, and approximately 25 percent savings on occupational health costs,” said Morrison. “These savings have helped reduce the impact of health plan cost increases to cities, counties, corporations and more over the past five to 10 years.

“Without these savings, many employers would have reduced workforce and/or compensation to their workers.”

And as the clinic continues to grow in popularity, employers aren’t the only group of people experiencing the clinic’s financial benefits. In fact, county and city employees can visit the clinic for anything ranging from simple wound treatment to pharmacy prescriptions without being charged a copayment.

“With everything at RepuCare, there is no money involved for the employee,” said Howard County Personnel Administrator Wanda McKillip. “People can get lab tests, blood tests, supplies for diabetes, physicals and not be charged a copay, which really helps out all of our employees and their families.”

To put the savings into perspective, a $150 charge from a hospital physician would likely cost the employee a $30 copayment, according to McKillip.

“This clinic helps to save costs to the employee and to the county,” she said. “The clinic is great. It allows us to keep costs down but still get great services.”

And while Ashley Brown, a registered nurse at the RepuCare clinic, agreed the inexpensive treatment has been a major draw for public employees, she can’t help but credit some of RepuCare’s burgeoning wellness programs for the clinic’s utilization rate, she said.

“We have many unique wellness programs, including smoking cessation, weight management, nutrition, stress management and more,” said Brown. “This is our second year doing the programs, and the classes always fill up very quickly.

“I’ve been here three years, and I’ve gotten to know many patients and family members through the programs and treatment.”

Along with health care services, these free opportunities have had a major impact on the health of city and county employees, said Horton.

“It encourages employees to receive more services because it is free,” Horton said. “Thirty dollars may not sound like much, but when people are living paycheck to paycheck it can make a big difference. This clinic encourages better lifestyles and behavior because it won’t cost them.”