Kent County Moves to LGIT Health Co-op

Kent County recently became the first county in Maryland to join the Maryland Local Government Health Cooperative.  Established in 2010, the Local Government Insurance Trust’s (LGIT)  Health Cooperative program provides local governments with an alternative to self insuring or purchasing health insurance.  The Cooperative model involves the joining of several local governments into a purchasing group to capitalize on the advantages of self-funding without bearing the risks.  Kent County made the transition to the program on July 1 after considering a variety of options.  LGIT Executive Director Tim Ailsworth expressed that Kent County will set an example of how beneficial the program is for local governments.

“..this will show other counties that the Cooperative is a viable option for them when they make their decision on where to place their health coverage.  The Cooperative is different from traditional insurance coverage in that the member has the opportunity to get money back if its claims come back less than anticipated.”

Key advantages to the program include:

  • Maintain own plan design
  • Fixed annual budget costs
  • Lower net cost compare to high deductible cash reimbursement plans
  • Generate lower annual renewals compared to current fully insured market

MACo Executive Director Michael Sanderson stated:

“Essentially the pool is trying to give smaller governments the benefits of being self-insured, without taking on that kind of individual risk. We’re hopeful that this new approach — getting some better leverage for smaller counties and towns by pooling together — can be a valuable tool to save taxpayers’ money. I think every county is looking at whatever way they can to responsibly stretch their budget, and I think this program can help them do that.”

Current members include:

  • Kent County
  • City of Brunswick
  • Town of Port Deposit
  • City of Gaithersburg
  • City of Westminster
  • Maryland Municipal League
  • Local Government Insurance Trust

LGIT is the Risk Pool for Maryland’s local governments. LGIT’s mission is to provide coverage and risk management services at stable and competitive rates through an organization that is owned and managed by its local government members.”  Currently the organization  insures 16 of Maryland’s 23 counties with liability, property and other lines of coverage.

For more information make sure to stop by LGIT’s booths (507 & 903) at the upcoming MACo Summer Conference

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