City to join self-insurance pool
If a customer's claims exceed the premium 3 to 1, there's little doubt rates are going up.
That was the position the city of De Soto found itself in when City Administrator Pat Guilfoyle began his annual review of the city's employee health insurance.
The city's provider, Humana, offered the city a 22.3 percent "take it or leave it" increase for 2008. Although no other company was interested, Guilfoyle proposed last Thursday the De Soto City Council leave it.
The city administrator purposed instead the city get health insurance through MARCIT, a large self-insurance pool established by the Mid America Regional Council.
Guilfoyle suggested the city take advantage of the savings to start helping employees with health insurance to family members. He suggested the city pay 30 percent of the premium cost of employee's family members.
A survey of employees indicated there would be little participation in the family benefit, Guilfoyle said it was a start.
The cost of the MARCIT premium with the 30 percent family benefit was $131,700, or $2,600 less than the Humana's proposal.