Unexpected News from County Accounting Experts

On Thursday, Milwaukee County’s accounting team delivered surprising news to the finance committee regarding the county’s health insurance contract with United Healthcare, which lapsed on December 31. As of now, the county has not renewed this essential contract.

Understanding the Implications of the Lapsed Contract

County Comptroller Liz Sumner informed the committee, “You are amending a contract that did expire at the end of last year.” This contract is crucial as it covers health benefits and prescriptions for over 3,000 county employees and retirees. Despite the expiration, Milwaukee County is still operating under the terms of the old contract, albeit with diminished legal protections.

Current Coverage Status for Employees

Supervisor Steve Taylor reassured that employees are still covered, stating, “As of right now, we’ve paid $9 million this year to United Healthcare, so our employees are covered.” Yet, the county’s legal status remains precarious.

Concerns Raised by County Officials

During the meeting, County Human Resources Director Tony Maze presented a five-year contract extension proposal. However, concerns were raised when accountants noted that the committee had only received the contract details the prior week, leaving insufficient time for thorough review.

Supervisor Taylor questioned, “How do we get to the point where we’re in a contract that’s expired?” This situation, further complicated by the fact that the existing contract has been in place since 2009 with periodic amendments, warrants closer scrutiny.

The Risk of Non-Renewal

Corporation counsel cautioned the committee about the risks associated with not renewing the contract promptly. There are concerns that United Healthcare may choose to increase premiums or deny coverage for costly procedures. Deputy Corporation Counsel William Davidson emphasized the “potential for catastrophic risk,” particularly affecting members of the health plans.

Implications for Financial Oversight

County accounting officials expressed worries that renewal under the current terms might restrict their capacity to conduct annual audits to ensure compliance. Director of Audits Jennifer Folliard stated, “We do not have the power that I would like to have to look into this on your behalf based on the language that is in there.”

Next Steps and Emergency Meeting Scheduled

Supervisor Anne O’Connor described the entire scenario as “incredibly alarming,” and suggested that the county may be entering “damage control mode.” Consequently, the finance committee decided to postpone the decision on the contract until an emergency meeting is scheduled for Monday morning, where they will deliberate on approving the five-year contract extension.

The full board is anticipated to address the issue on Thursday. In a statement, a spokesperson for Milwaukee County Executive David Crowley affirmed that he has instructed administration officials to resolve the situation promptly and collaborate with the Board of Supervisors to finalize the contract next week.