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.