Study to Determine Potential for County Workers’ Comp Pool Proceeds to Stage 2

With information gathering almost finished, MACo’s consultant begins feasibility study of self-funded group insurance option.

Aon’s actuaries are using data submitted by Maryland counties to assess the viability of a county insurance pool.

This past fall, the Maryland Association of Counties (MACo) contracted with Aon to determine the feasibility of a county workers’ compensation insurance pool. MACo was asked by its members to help determine whether a county insurance pool of this type would be viable.

County governments that purchase insurance and those that self-insure are interested in additional options in the Maryland insurance market that may respond more directly to county government needs. County employees range from high-risk positions such as police, fire, and public works position, to office and clerical jobs, making county governments unique among employers seeking workers’ compensation coverage.

The data collected during Stage 1 of the study included, for each county and Baltimore City:

  • 10 years of payroll data, by class code and
  • 10 years of claims data, with payments and incurred losses, separated out by amounts paid for indemnity, medical, and expenses

This information will be essential to the work of the actuaries to project potential costs for a county workers’ compensation pool. The actuaries will be considering the historical information, including the ratio of claims costs to the amount of total payroll in each county, to make the projection.

MACo is grateful to county governments for cooperating with the research request and providing the necessary information for this study. The Maryland Association of Human Resources Officers was especially helpful in coordinating this work.

For more information about this project, contact Robin Eilenberg at MACo.