37 Idaho Cities Consider Self-funded Insurance Pool
MyHealthGuide Source: Tony Evans, Idaho Mountain Express, 8/19/2001, IME Article
A plan that started in Ketchum last year to pool public employees in order to save health insurance costs has gathered the support of 37 cities in Idaho, including Hailey, Blackfoot, Jerome, Shoshone and Stanley.On Jan. 1, a group of 833 employees from these cities will move forward as a self-insured entity in hopes of reining in insurance premium increases that have been going through the roof in recent years.
“We never contemplated we would have nearly 40 cities involved before we commenced operations,” said Ketchum City Administrator Gary Marks.
Following the advice of Marks’ associate Charlynn Herliss, the new organization will contract with independent claims representatives, pharmaceutical sales people, large-case management professionals, wellness specialists and others, rather than pay a premium to an insurance company for these services.
Marks said Dave Turner, an actuary based in California who works for Idaho National Laboratory, will analyze employee statistics and claims data to form the best plan.
Marks made a call last fall to nearby municipalities to form a joint-powers board to initiate a self-funded insurance pool. He was hoping to gather at least 100 employees, the minimum number required by state law to release insurance claims data held by insurance companies.
Claims data can be used to assess the future financial risks of insuring particular groups of people. Marks planned to use the information, and the larger pool of people, to purchase a cheaper insurance plan. Due to the overwhelming support he received, Marks said the group, now called the Idaho Independent Intergovernmental Authority, will instead move forward with forming its own self-funded insurance benefits plan.
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