The Local Government Insurance Trust (LGIT) recently announced that it returned over $1 million in premium surplus to its Maryland Local Government Health Cooperative (MLGHC) members following the completion of the 2012-2013 plan year.  The Co-Op’s design to return surplus after a year of good claims experience is a major benefit to governments participating.

From LGIT’s press release,

The funds returned to members are claim fund surpluses that are tracked separately for each local government entity that is a member of MLGHC. The premium surplus covers three plan years of operation. The MLGHC program uses a unique self-funding platform that provides total transparency so members know where every dollar is spent. MLGHC was formed in July 2010 by five local government entities and now has 16 members.

A presentation on the Health Co-Op from earlier this year outlines the essential benefits to governments of joining:

As a member, you will…

-Gain better control of the overall financing of your benefit plan

-Gain the inherent safety of being part of a large purchasing group

-Significantly stabilize your monthly cash flow

-Receive any excess premium surplus

-Have the peace of mind in knowing the cooperative model has a proven track record for the past 20+ years

See previous Conduit Street coverage of Kent County joining the Health Co-Op.  In fairly the short time of that county’s participation, it has received hundreds of thousands in returned premiums, due to good claims experience by county employees.

To learn more about MLGHC or becoming a member, contact Michele Keplinger, LGIT Member Services Specialist, at MicheleK@lgit.org or 443.561.1700.