Ryan Colvin from Gibson Insurance Group, the City of Plymouth Health Insurance consultant took a few minutes Monday evening to update Common Council members on the renewal for 2018.
Colvin told members when they negotiated with PHP (Physicians Health Plan) for new insurance coverage late in 2016 they were able to put a 10% rate increase cap in place for the 2018 coverage. He said if that had not been in place the increase could have been as much as 80 percent. Colvin said going into this year’s renewal he went to the Market Place to see if any companies were interested in quoting for the city business, all four (Etna, United Health Care, Anthem, Signa) declined because there were not competitive.
Cost have gone up over the past 10 years and the city have been fortunate to have seen very little increase but that will not be the factor for the 2019 renewal. Colvin said not only have cost gone up but the city had a very poor year from the claims experience standpoint with a loss ratio as of September was 173% meaning the insurance company paid out more in claims than premiums paid in.
Colvin wanted to prepare the city council now but said they will have to look very hard at options such a plan design changes and employee contributions. He encouraged the council to urge employees to participate in any wellness programs offered from PHP and encourage them to take personal responsibility for their health.
He said the best case scenario, the city would have a good year in claims and they might be able to find another carrier for 2019.
