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Home My WebLink About1991 03 04 Memo Re: Insurance Committee ~. -<;. Date: March 4, 1991 To: D. Lee Constantine, commissioner .......!:. From: Phillip D. Penland, Subj ect: Insurance Committee -~.; : As you know, the Insurance Cormnittee appointed by CALNO spoke with respected insurance consultants Siver and Asso- ciates, as well as Gallagher and Associates who are experi- enced in setting up and administering self insurance pro- grams. The best that we (Altamonte Springs) could hope to save is 5% of our current premium. There was an indication that some of the smaller cities such as Longwood might save 20%. There is absolutely no guarantee that either of these. savings would be realized. In our case, the savings of 5% of the premium calculated to $37,500.00 and is the upside benefit. The downside is that our current insurance carrier takes all the risk of our claims exceeding the premium paid. That risk can be quite substantial and it would be imprudent for this city to assume that kind of risk for the relatively small potential :~ savings. The risk/reward ratio is not in our favor. It became quite clear in talking to the professionals that the proposed group consisting of Seminole County and th~ 7 cities simply did not have the number of employees necessary to give us clout with an insurance company, hospital or group of doctors. As you may know, Seminole County is involved in a joint study with Orlando and Orange County to investigate the feasibility of some joint effort. Interestingly, that study is being done. by Siver and Associates who spoke to our Insuranc~ Cormnittee as a result of having done some work for Altamonte'Springs. Please note that the proposed Orlando/Orange County/Seminole County pool would involve nearly 15,000 employees. The most our pool would have, assuming seminole County does not participate, is approximately 1,500. Even with seminole County's participation, we appear not to have the necessary number of participants. It is unfortunate that we are not able to report a more hopeful scenario, but the nature of the insurance industry today, particularly health insurance, simply does not lend itself to easy solutions to this nagging problem. As a sidebar, in the Conunittee's dis- cussions we learned that many of the cities do not currently have functioning wellness programs. While this is not a panacea, it might behoove those cities to look into this as a small first step. ... ... -- -. -.. ~ o .,-i III III .,-i ~.-l 00\ UO\ ~.-l ~ H QI 0 ['H o QI r-i~ QI'ri >r-i QI QI 'da QI-,-i ~E-< N 0\ I r-- .-l t o ~ ~ QI UI I:: QI III Hr-i 11<11< ~ I:: 11< QI ~ Ull:: Ul QlIIl Hrl 11<11< ClI ~ ~ UI ~~ .,-i III Hr-i 11<11< ~ QI b'> ~ r-i~ QI 1Il-,-i r-i ........,-i ~ P. ~ ~ I:: f'l 1Il-,-i.,-i o r-i ~ H UI1<HI1< ~ QI > I Ul OHr-i H QI III p.~ U p.1::0 o<(Hr-i ~ . QI ~ > U o QI H~-n P.UlO P.OH o<(UI1< ~ 11< I'l: ~ a ~ QI-,-i b'> .,-i r-i -,-i >QlUl QlHQI ~11<0 :>,Ul ~~ QI',-i 0 > ~.,-i ~ O~~H H a III 0 p.f'lr-i P. P.OQlQl I'l:U~~ ~ ~ QI QI ~r-i e ~ HIllQlO p.1::>O p.-,-i 0 QI o<(r..Cl~ ~ ~ QI . QI ~-~ ~ ~ H r-i 0 QI p.QlU> P.HQlO I'l:I1<~Cl 'd' .-lH .-lid ;j 0 f><lXl 'H 'H o I III I 1-1 rl ~ QI III b'>~ 0 .,-i I:: 0 UlHr-i ~ Ul ~ I:: .,-i III Hrl 11<11< .~ . I'll:: ~ .,-i QI H r-iUl QI QlQI > HI-IOO I1<I1<~Cl QI ~ I 1Il QI ~Hr-ir-i 'HQlIllP. . 1ll.jJ 0 a 1-1 ~ 0 0 OHr-iU r-i ,Ill > r-i.jJ0 III 'H H ~1llP. .,-i H P. f><00<( ~ QI .~ ~ r-i0 QI U 1-1 QI 11<~ en ~~ ~ 0 Q).... ~-:;; Hr-i :g, o Q) ClPl . .jJ u c: .rl QI r-iUl .0 QI 8.5; .jJ 1Il I:: I:: .rl III I-Irl 11<11< I:: . QI ~ a ~ QI -,-i a 13 r-iOQl QlU.c: I-IQlE-< I1<PI~ ><1Il ~~ .... 0 ~.... ;j.jJ ~~ o Q/ UP: ~1Il I::~ .,-i III I-Ir-i 11< Pi ~ . .QI ~ .~ ~ ~ r-i O.jJ'n QlOlllO HQlOI-I Pi~UPi 1Il~ ~H ~O 1llP. .jJQI Ul~ III QI .......11I> QI en.... OQl~ ~ ~ ~ !d.... QI J:llll 0 -ri ;j ~ f><lXlH '~"'< .jJUl I:: I:: -rilll Hr-i Pi Pi ~r-iE 'I-l1ll0 IIlI::U H',-i QI Or.. PI . r-i .jJ Id 0 00 QI .jJ .,-i ~ 'n o P.1Il 0 H>'OH I1<~UPi 131:: -rib'> r-i',-i QlUI H CD PlO >. III I::~ GlO'd >-,-i III OUlO H''-IPI p.> p..,-i 'H 0<(00 III o -ri .......~ ~<<I ,t1\J:l -ri~ VIlli . GI ~o<