HomeMy WebLinkAboutInsurance Committee Minutes 09.01.2004MEMBERS PRESENT:
OTHERS PRESENT:
INSURANCE COMMITTEE
Monday, September 1, 2004 5'.00 pm
Old Council Chambers
Guy Rolison
Jason Wells
Cheryll Lund
Bud Arnold
Mike Nieskens
Chris Shay
Bob Worthington
Mark Mace
Mary Embleton
Dick Fritzler
Bob Worthington gave an overview on the proposed self-insured insurance that will be available through
the Montana Municipal Insurance Agency starting October 1, 2004.
There will be approximately 1,000 people participating in this program from towns all over Montana.
This opportunity is being given only to smaller towns in Montana. At a later date some of the bigger
cities may be able to participate. MMIA is looking into that option.
At this time MMIA is requiring each participating city to sign a contract for 5 years. This is only
because it takes at least 2 years to establish a claims database and 5 years for continuity.
Each city has been given until October 1, 2004 to decide if they want to participate in the program. If the
City of Laurel decides not to go with MMIA at this time and then decide to go with MMIA at a later
date there would be a penalty assessed to do so. Bob stated that they are considering giving a 30 day
extension on the date of October 1~t.
For now the carrier for the MMIA will be Blue Cross Blue Shield and benefits will be the same as the
benefits now for all participants for the first 21 months. All deductibles accrued will carry over as well
as pre-existing conditions.
MMIA cannot guarantee that the premiums will stay the same after this fiscal year. That determination
will be made after the first year of the program.
Bob Worthington explained that what MMIA could offer, that BCBS cannot, is that any profit made will
stay within the insurance fund for the benefit of all of the participants. That is not the case with BCBS
because they are a business that depends on making a profit to stay in business.
After a discussion by the board a motion was made by Jason Wells, and seconded by Bud Arnold, to set
up a time for Bob Worthington to come back and address all of the employees regarding the proposed
MMIA insurance plan. Motion carded.
The meeting was adjourned at 6:30 pm.
Respectfully submitted,
Cheryll L'hnd, Acting Secretary