LMCIT and MCIT explain public-sector pooling and coverage gaps for cities, counties

Presenters from the League of Minnesota Cities Insurance Trust and MCIT described how public-sector risk pools were formed in the 1970s and 1980s after private carriers exited public-sector markets, and why many cities and counties rely on joint pools rather than commercial carriers.

"Our city and county members said, 'Hey, why can't we do together because we could all self-insure?'" Jen Wolf, chief insurance officer for LMCIT, told the work group. She explained that LMCIT and MCIT focus on rate stability, loss control, and returning surplus to members rather than profit, and that the organizations invest in public-safety wellness programs to reduce claims.

Presenters listed membership and coverage patterns: MCIT covers most counties (81 of 87), and LMCIT covers several hundred cities (presenters referenced "over 800" and named large self-insured municipalities such as Minneapolis, Rochester, Plymouth, Richfield and Bloomington). They said a small subset of large municipalities self-insure and operate their own workers'comp programs while the majority participate in the pool.

Members asked how the pools handle county sheriff's offices and exceptions; presenters noted some counties and large cities carry separate arrangements. The presenters positioned their organizations as stewards of taxpayer funds, balancing employee obligations and member fiduciary responsibility.