Press Release

County Maximizing State and Federal Health Care Reimbursements

Change in reimbursement process to yield additional $1.5 million

FONDA - County Executive Matt Ossenfort today announced that a change in how the Department of Social Services (MCDSS) claims health care reimbursements will be a major boost to the County's finances. The dissolution of the Montgomery County Health Trust on Tuesday and a switch from claiming actual health care expenses instead of estimates will net the County $1.5 million in state and federal reimbursements.

"At a time when we are focusing on the balance between holding the line on property taxes and making critical investments, organizational improvements such as this are necessary. This is certainly good news as we begin our budget process," Montgomery County Executive Matt Ossenfort said.

In advance of the trust's dissolution, MCDSS changed the way it claims for County employees' health care expenses. In the past, MCDSS has paid a flat rate for employees insurance into the Trust, while also claiming this flat rate for reimbursement from Federal and State programs. By claiming for actual health care expenses the County will greater maximize reimbursements and generate additional revenue.

The accounting staff at MCDSS was able to go back two years and adjust reimbursement claims for 2011 through 2013, generating $1.2 million in federal revenue and $360,000 in State revenue to the County.

"This is a great result of hard work from our team," said Michael McMahon, Commissioner of MCDSS. "We will continue to use this process moving forward to try and maximize each and every opportunity available."

In 2013, Montgomery County received $527,000 of the additional revenue and the balance should be received during the current calendar year.